On-Chain Protocol Fees Decline 33% Year-over-Year in Q2, While Perpetuals and Prediction Markets Grow 22%

According to 1kx, on-chain protocol fees declined 33% year-over-year in Q2, with DEX fees dropping 57% to $625 million, primarily led by Meteora, Raydium, and PancakeSwap. Blockchain and MEV fees fell 40% to $362 million, while Launchpad fees decreased 57%.

Perpetual contracts and prediction market fees bucked the trend, rising 22% year-over-year, driven by edgeX and Hyperliquid. Polymarket generated nearly $100 million in fees during the quarter. Lending and asset management protocols continued to gain traction, with protocols like Morpho growing by $9 million to $19 million each.