PANews reported on April 2nd that, according to 1kx analysis, the on-chain fundamentals in the first quarter of 2026 showed a divergent trend: on-chain fees paid by users decreased by approximately 50% year-on-year and 26% quarter-on-quarter; the value allocated to token holders remained stable, but the number of profitable protocols saw a slight decrease for the first time.

The changes across different sectors are as follows: The overall decline was primarily driven by the DeFi sector (-34%), with related infrastructure (such as cross-chain bridges) decreasing by 43%; the perpetual contract sector saw the largest decline (-36%), while stablecoin issuance increased due to the Sky ecosystem; the wallet sector declined by 16%, consumer applications by 12%, but the Launchpad sector grew by 10%; DePIN was the only sector to achieve positive growth, increasing by 13%; the blockchain sector declined by 5%, with Zcash increasing by 80% and Polygon increasing fourfold. The fee distribution ratio is largely consistent with the 2025 average: the blockchain sector accounts for 21%, and DEXs account for 24%. In terms of the time it takes to achieve profitability for the first time, protocols that become profitable in 2024 or 2025 still contribute approximately 47% of the total fees.

Specific protocol performance: Zcash rose to second place, while Pump.fun saw an increase in fees. BagsApp saw the largest increase in ranking (rising 180 places), but its fee surge in January has subsided. Farcaster ranked 25th after integrating Clanker's fees. Protocols that have ceased generating profits include Level, Elixir, Mars Protocol, EARNM, and Lifinity. KuCoin has not announced any buybacks or burns this quarter. Some protocols that had fees exceeding $100,000 last quarter have dropped to zero this quarter, including Quanto, Lava, and Rezerve Money.