Blockworks data reveals off-chain companies dominate crypto revenue
Summary
A conversation initiated in the @Blockworks Telegram group revealed significant disparities in revenue generation between on-chain protocols and off-chain centralized companies in the crypto industry. In 2025, total on-chain revenue was approximately $8 billion, starkly contrasted by off-chain firms, which generated around $70 billion, making their market participation 8.5 times greater than on-chain revenues. This revelation underscores a broader trend in which centralized exchanges and brokers control 66% of off-chain revenues, highlighting the importance of user accessibility. Centralized platforms tend to simplify the user experience, enabling monetization while minimizing the complexity associated with direct crypto interactions, a factor that has contributed to their dominance in the market.
Tokens
$Tether$COIN$GMD$BITS$BULL$RH$GAL$FGX
Analysis
BitGo: BitGo is a digital asset custody and wallet infrastructure company. It appears in the news as one of the public centralized players contributing to the off-chain revenue pool estimated at $60B–$100B. Galaxy: Galaxy is a financial services firm specializing in crypto trading, asset management, and investment. The news includes it among centralized players whose revenues are compared to the much smaller on-chain ecosystem. Gemini: Gemini is a regulated cryptocurrency exchange and custody provider. The news includes it in the group of public off-chain entities capturing significant value from the broader crypto industry. Tether: Tether issues the USDT stablecoin and operates as a major centralized financial infrastructure provider in crypto. It is cited in the analysis as one of the private entities in the off-chain pool, with stablecoin issuers accounting for a notable share of the ~$70B revenue estimate alongside exchanges. Binance: Binance is a global cryptocurrency exchange offering trading, staking, and custody services to a wide user base. The news positions it as a key private off-chain player contributing to the estimated $70B in centralized crypto revenue, far outpacing on-chain protocols. Bullish: Bullish is a cryptocurrency exchange with a focus on institutional and compliant trading. The analysis groups it with other public off-chain companies showing outsized revenue capture relative to on-chain protocols. FalconX: FalconX is a crypto prime brokerage and trading platform serving institutions. It is named in the off-chain revenue breakdown as a contributor to the centralized industry's dominant position. Coinbase: Coinbase is a major public cryptocurrency exchange providing trading, custody, and related services. It is listed among the centralized off-chain companies generating substantial revenue that dwarfs the on-chain total according to the analysis. Anchorage: Anchorage is a digital asset custody and banking platform. The news lists it among the private and public off-chain entities generating far higher revenue than on-chain protocols and L1s. Robinhood: Robinhood is a retail brokerage platform that offers crypto trading alongside stocks. It is referenced in the news for its crypto-related revenue as part of the broader centralized industry capturing the majority of value. Blockworks: Blockworks is a crypto-focused media, data, and research organization that publishes industry analysis and hosts community discussions. The news draws on its data for on-chain revenue figures and references conversations from its Telegram group as the starting point for the off-chain comparison. Venture Strategy: Early investments in established centralized exchanges and major L1s have historically delivered stronger returns than most individual tokens. User Accessibility: Centralized platforms abstract away technical complexity for users who prefer not to interact directly with wallets or protocols. Revenue Concentration: Trading and related services dominate revenue generation in both on-chain and off-chain segments of the crypto industry.
Categories
crypto