Onchain UX Report Reveals Crypto payment Challenges
Despite stablecoins gaining traction and fintech companies entering the space, crypto payments are still not mainstream. The 2025 State of Onchain UX report by Reown, with Nansen AI support, explains why.
The report examines how people use wallets, apps, and on-chain services. It surveyed 1,038 active crypto users in the U.S. and U.K. Most participants were from the U.S. (51%), and the majority were men (59%). Most users were aged 18-34, with only 17% considering themselves beginners.
Users identified as traders (56%), DeFi users (45%), and those using crypto for real-world payments (47%). The report combines survey data with infrastructure usage from reown and WalletConnect, and wallet-level transaction analysis from Nansen.
Multi-wallet use is now common.Sixty-two percent of participants use two or more wallets. Reasons include access to different chains (48%) and security concerns (44%). Experienced users often use exchange-linked wallets like Binance and Coinbase.
Mobile wallets are still preferred, but hardware wallets are gaining traction among security-focused users. Users want lower fees, broader token support, simpler designs, and better scam protection.
Blockchains are now specializing. Ethereum handles large transaction volumes and supports various applications. Solana excels in high-frequency activity, like memecoins and fast-paced trading, due to its speed and low costs.
User Behavior and Chain Preferences in the Crypto Space
Crypto users are increasingly diversifying their activities across different blockchain networks. Solana, as an example, has a rapid user turnover, largely due to short-term trading on platforms like pump.fun and Jupiter.
Base,a layer 2 network supported by Coinbase,is gaining traction. It hosts a variety of experimental apps and cross-chain tools. Fee revenue on Base has surged by over 460% year-over-year. However,only 10% of users consider layer 2 chains their primary platform,showing the strong influence of familiarity and network effects.
BNB Chain, closely tied to the Binance ecosystem, attracts users with its low-cost, fast transactions. Most BNB Chain users conduct smaller,frequent trades and interact with fewer third-party apps. This model appeals to those prioritizing speed and cost over versatility.
Users are no longer loyal to a single chain. They choose networks based on specific tasks, leading to the use of multiple wallets. Cross-chain compatibility is crucial, with 80% of users rating it as very or somewhat critically important.
Trading remains the dominant on-chain activity, though users show interest in payments, gaming, and decentralized social tools. Bitcoin is the most widely held token, owned by 64% of respondents. Stablecoin adoption has risen to 37%.
DeFi use is steady but limited in preference. Only 8% of users named it as their top use case. NFTs are evolving from speculative assets to collectibles, but only 19% of NFT collectors favor NFT-related activities.
security is a top concern. While user confidence has improved, phishing attacks have increased. Only 35% of users believe current platforms offer adequate security. Clear Signing interfaces are emerging but adoption is still low.
Crypto Payments: Progress and Challenges
Users are increasingly exploring crypto for payments, but the experience isn’t always smooth. While 54% of crypto users have used it for buying goods or sending funds, only 12% consider it their favorite on-chain activity.This gap suggests that crypto payments still have a long way to go.
Stablecoins are gaining traction, with adoption nearly doubling in the past year, from 20% to 37%. This growth reflects a growing need for stable, low-volatility options, especially for cross-border transactions. Companies like Stripe, PayPal, and Paxos are integrating crypto payment solutions, expanding its reach into conventional commerce.
however, challenges persist. High fees, poor user experience, and inconsistent app quality create friction. Users often need to manage multiple wallets and manually switch between networks, leading to frustration. The infrastructure is improving,but its not yet seamless.
There’s also a geographic divide. In regions with unstable currencies, crypto payments offer real advantages. In the U.S. and U.K., traditional systems are frequently enough faster and cheaper, making crypto a backup option.
To rival traditional finance, crypto must offer the same consistency, speed, and simplicity. It needs to feel effortless. Until then, the journey to mainstream adoption will continue to face hurdles.
