Onchain user experience platform and creator of the WalletConnect Network, Reown has partnered with the AI-powered blockchain analytics firm Nansen to release the “2025 State of Onchain UX” report. This study draws on Nansen’s analysis of wallet activity across various decentralized applications and blockchain networks, aiming to offer a clearer picture of how users engage with Web3 technologies on-chain.
The report also incorporates findings from a YouGov survey conducted with over 1,000 active cryptocurrency users based in the United States and the United Kingdom. It provides insights into current user experiences with blockchain platforms and the evolving infrastructure that supports them. While there is evidence of overall progress in usability, the report indicates that the ecosystem is still grappling with challenges, including technical fragmentation, inconsistent user flows, and operational friction—issues that continue to hinder widespread adoption despite a growing level of sophistication.
“As the ecosystem continues to mature, we’ve seen a surge in innovation alongside some notable challenges,” said Jess Houlgrave, CEO of Reown, sharing insights on the Web3 ecosystem. “From solving liquidity fragmentation across chains, user experience challenges around gas, to seamless wallet and app connectivity, to working on ensuring that we can deliver better UX and better security, the past year has also been shaped by regulatory shifts, changing market dynamics, and an influx of institutional interest—from payments to RWA tokenization,” she added.
The findings from the report illustrate an ecosystem advancing fast in scale, but not necessarily in ease of use. As the number of wallets in circulation grows, mobile wallets continue to dominate the space. However, 62% of users now operate more than one wallet, a trend largely influenced by limited interoperability and ongoing concerns about security. While mobile wallets remain the entry point for many, more experienced users are increasingly turning to hardware wallets and exchange-based options such as Binance, suggesting that users are searching for a balance between security and convenience—yet not finding a single solution that delivers both effectively.
At the same time, awareness of smart wallet technology remains limited. A 58% of users say they are unsure how smart wallets function, which indicates both a user experience gap and a broader educational challenge for the industry.
The report also highlights that Bitcoin remains the most commonly held asset, with 64% of respondents owning it, while stablecoin ownership has nearly doubled year over year to 37%. Interestingly, only 12% of users pointed to payments as their preferred use case, despite a stated interest in decentralized payment systems and social platforms. This disconnect between aspiration and actual usage—largely skewed toward trading—presents both obstacles and opportunities for developers and product designers.
Adoption of specialized blockchains like Solana, which has seen a 3,000% year-over-year increase in fee volume, and Base, which has experienced a 464% rise, reflects growing interest in niche networks. Although only 10% of respondents say they regularly use Layer 2 solutions, the preference for interoperability over platform dominance is emerging as a key behavioral shift.
User sentiment around security has improved, with 69% indicating they feel safe using cryptocurrencies. Still, many users lack clarity on advanced concepts such as smart accounts, cross-chain functionality, and other onchain tools. As the cryptocurrency sector continues to evolve through social wallets, non-fungible tokens (NFTs), and stablecoins, users increasingly identify payments, AI, and simpler interfaces as essential to wider adoption.
2025 Onchain UX Report Showcases Diverse Industry Perspectives On Blockchain Usability, Security, And Cultural Adoption
“Nansen is proud to contribute our data analytics expertise to the “Reown Reports: The State of Onchain UX 2025.” Our analysis uncovers how users specialize their activities across different blockchains, with distinct patterns emerging in trading, DeFi usage, and value transfer,” said Alex Svanevik, Co-founder and CEO of Nansen, in a written statement.
“This collaboration with Reown transforms complex onchain behaviors into actionable insights, helping the entire industry better understand and serve the needs of web3 users as we collectively build toward wider adoption,” he added.
The report presents a range of perspectives from key industry figures. Sam G. from TokenPocket offers insights into chain abstraction, while Charles Guillemet of Ledger addresses the role of Clear Signing in improving transparency and trust. Eowyn Chen from Trust Wallet shares her view on the evolving landscape of wallet user experience, and Jeannie Lim from Paxos explores the rising adoption of stablecoins and their implications. Pedro Gomes of WalletConnect reflects on decentralization principles, and Aneri Amin from Coinbase Wallet emphasizes the importance of culture in driving user engagement. Additionally, Jakub Rusiecki from 1kx provides thoughts on the NFT ecosystem, and Aurelie Barthere from Nansen discusses how blockchain activity is becoming increasingly specialized.
These contributions point to a common theme: although onchain user experience is evolving in a more tailored and culturally informed direction, fundamental challenges around security, cost efficiency, and interoperability continue to hinder broader accessibility. For the industry to bridge the gap between the vision of decentralized systems and real-world usability, efforts must focus on building experiences that are simpler, more secure, and better integrated.
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