Ethereum News Today: Institutions Gain Onramp to Blockchain as Onchain Economy Hits $20B

The onchain economy has surged to a $20 billion valuation in 2025, driven by a 126% year-over-year growth in blockchain applications and a significant drop in transaction fees, according to 1kx's inaugural Onchain Revenue Report. This milestone underscores the maturation of the crypto industry, where decentralized finance (DeFi) now dominates onchain earnings, with fees generated primarily by financial and infrastructure use cases. The report highlights a 90% reduction in transaction costs since 2021, facilitated by Ethereum's Dencun and Pectra upgrades, which have expanded layer-2 (L2) capacity and reduced mainnet congestion, according to a Cointelegraph report.

Ethereum's network activity has hit record levels, with daily transactions exceeding 1.6 million in October 2025—a near-monthly high—while gas fees remain near historic lows. Cointelegraph reported users paid as little as $0.01 per transaction, with fees for token swaps and NFT sales averaging $0.15 and $0.27, respectively. This efficiency has positioned Ethereum as a scalable infrastructure for real-world applications, attracting institutional interest. The Ethereum Foundation recently launched "institutions.ethereum.org," a platform designed to guide traditional finance entities into the blockchain ecosystem by showcasing use cases like tokenized real-world assets (RWAs) and DeFi, according to a TradingView article.

Globally, economic growth in the Gulf Cooperation Council (GCC) countries reached 3.0% in Q1 2025, with oil sectors contributing 22.9% to GDP and non-oil activities gaining traction, according to a GCC-Stat report. Meanwhile, the UAE's mobile wallet market is projected to grow to $8.28 billion by 2030, fueled by government-backed digital payment systems and biometric authentication adoption, as detailed in a GlobeNewswire report. In Asia, Taiwan's circular economy initiatives, including a $15 billion green-technology sector, have solidified its leadership in sustainable industrial transformation.

Ethereum's push for institutional adoption aligns with broader trends in blockchain monetization. Apple's Wallet app, for instance, is set to integrate digital IDs, passports, and installment payment features in 2025, leveraging biometric security to streamline user experiences, according to a WebProNews article. These innovations reflect a growing convergence between traditional and digital finance, as platforms like YouTube and AI-driven billing solutions explore new revenue streams through data analytics and consumption-based pricing models.

The onchain economy's expansion signals a shift toward decentralized infrastructure capable of supporting global financial systems. As regulatory clarity and technological efficiency reduce barriers to entry, institutions and consumers alike are embracing blockchain's potential to redefine value exchange.