A recent Reown report shows a shift in the on-chain ecosystem, highlighting payments and AI as potential drivers for crypto adoption. While optimism about the future is high, obstacles such as security, fees, and the need for interoperability remain significant concerns among users.
A recent report by Reown highlights a significant shift in the on-chain ecosystem, suggesting that users are engaging with crypto far beyond mere trading. It appears that both payments and artificial intelligence (AI) could be key in pushing crypto towards mainstream adoption, although various obstacles like fees and security still linger.
The report titled “The State of Onchain UX” was shared with BeInCrypto, deriving its insights from a survey involving 1,038 active crypto users in the US and UK, conducted from February 19 to February 26, 2025. Results indicate that 37% of respondents believe that payments, including stablecoins and remittances, will play a pivotal role in driving mass adoption. Furthermore, stablecoin usage has surged from 20% last year to 37% this year, showing a growing acceptance.
In terms of crypto wallet usage, there’s been a notable increase. Reown’s report revealed that in 2024, the average number of wallets used across various regions saw a rise of 1.27 times. Adding to this, 54% of users reported utilising crypto for payments, indicating a shift towards practical use cases in everyday transactions. As Mirna Barca, Reown’s Payments Product Manager, pointed out, for crypto payments to truly enter the mainstream, they must be as easy to use as traditional financial services without requiring users to decipher the complexities of blockchain technology.
AI is also cited as a significant factor, with 35% of those surveyed identifying it as a major catalyst for future adoption. Yet, there seems to be a level of skepticism about how blockchain might work with AI. Only 29% of respondents think the two technologies will effectively complement each other, and merely 18% see crypto as a means of advancing AI development. The report reflects a sentiment that while trading is currently the most active sector, users foresee payments and AI rising as crucial components of long-term crypto value.
The survey reveals that regulatory advancements and tokenization are regarded as potential drivers for acceptance, with each factor recognised by 26% of participants. The spotlight on crypto regulation has intensified during President Trump’s administration, as evidenced by the SEC’s formation of a crypto task force aimed at establishing clearer guidelines for digital assets. Paul Atkins, the new SEC chairman, has also echoed the call for regulatory clarity regarding crypto, labelling it a ‘top priority’ – a stance that resonates positively among users. 86% believe regulation could accelerate mainstream adoption.
However, before we can talk about true mainstream adoption, various barriers must be tackled. Users see better security as a top priority, with 33% deeming it essential. Privacy and data protection also play a significant role, as indicated by 25% of respondents. While confidence in on-chain security is climbing, with 69% feeling secure, phishing attacks have simultaneously risen, growing from 14.4% to 21% among users reporting such incidents.
Jess Houlgrave, Reown’s CEO, remarked, “Phishing attacks are up, and that’s a problem. But security UX still isn’t where it needs to be. If transaction processes can become clearer and fraud protections strengthened, users will feel more empowered.”
Now, 44% of users employ multiple wallets for added security, rising from 32.8% last year. Also, 39% report high fees as a deterrent to deeper engagement in on-chain activities, while 30% believe that reducing fees would spur participation. There’s a clear call for greater interoperability too—47% highlighted its importance, but only 14% consider it a major issue that needs immediate addressal.
The report ultimately nudges developers to focus on practical use cases that guarantee secure, seamless, and affordable user experiences. It spotlighted a mismatch between what users expect, which includes payment and social applications, and their current behaviours, which still heavily favour trading. Going forward, understanding and bridging this gap will be vital for achieving true mainstream adoption of crypto.
With 67% of respondents feeling optimistic about crypto’s trajectory, the on-chain ecosystem appears set for further growth. Yet, addressing those security, fee, and interoperability issues will be crucial in unlocking its full potential, fostering that crucial next wave of mainstream engagement.
