A recent report from Reown revealed that the crypto market is maturing, with users expanding their engagement beyond trading activities. Many believe that payments and artificial intelligence (AI) will be key to driving the mass adoption of on-chain technology.
Despite the optimism about the future of cryptocurrencies, challenges such as high fees, security, and lack of interoperability between platforms still persist.
The future of crypto adoption
Reown shared its report, 'The State of Onchain UX,' with BeInCrypto. It is based on a survey of 1,038 active crypto users in the U.S. and the U.K., conducted between February 19 and 26, 2025.
The data reveals that 37% of users see payments — including stablecoins and international transfers — as the main driver of mass adoption. The study also points to a significant increase in the use of stablecoins, which rose from 20% in 2023 to 37% in 2024.
The use of crypto wallets has also gained momentum. Reown noted that in 2024, the average number across all regions increased by 1.27 times.
Additionally, 54% of users now transact with crypto for payments, suggesting a growing use in the real world.
For crypto payments to truly reach the mainstream, they must match the ease of traditional fintech experiences. Users should be able to transact effortlessly, without needing to understand the mechanics of blockchain, wrote Mirna Barca, product manager of payments at Reown.
AI is seen as another key driver, with 35% of users identifying it as a major catalyst for adoption. However, while the potential of AI is recognized, there is some skepticism about the role of blockchain in AI development.
Only 29% believe that the two technologies will complement each other. Meanwhile, only 18% see crypto as a facilitator of AI progress.
Although trading is the main activity of users today, payments and AI dominate as the two themes users feel will have larger roles on a bigger scale, suggesting that the main services accessed today do not reflect what they believe will drive their long-term value, the report said.
Drivers of Crypto Adoption. Source: Reown
Additionally, regulatory advancements and tokenization are seen as the next areas that could contribute to the mass adoption of the crypto market, with 26% of users identifying each as a key factor. Under President Donald Trump's administration, crypto regulation gained prominence.
Shortly after President Trump took office, the SEC established a crypto task force to create a clear regulatory framework for digital assets. In fact, the new SEC chairman, Paul Atkins, also emphasized the importance of regulation in the crypto market, calling it a 'top priority.'
This focus has significantly contributed to the industry's optimism, and user data exemplifies this. 86% of users believe this will drive mainstream adoption, while 14% think it will slow innovation.
We are in the last moments of regulatory uncertainty in the U.S. In Europe, the MiCA is finally taking shape, but the lack of precedents has kept innovators guessing, just like in the U.S. The industry is on the brink of regulatory clarity, but we are not there yet, commented Marco Santori, director of the WalletConnect Foundation.
What are the main factors preventing widespread crypto adoption?
However, before mainstream adoption can occur, investors believe that several areas need improvement. Better security tops the list, with 33% of users considering it critical for broader adoption. Additionally, 25% of users highlighted privacy standards and data protection.
Trust in on-chain security has increased significantly, with 69% of users feeling secure, compared to 50.5% last year. However, phishing attacks have also risen. The number of phishing attacks reported by users grew to 21%, compared to 14.4%.
Phishing attacks have increased, and this is a problem. But the user experience in security is still not where it should be. If we can make transaction signing clearer and incorporate fraud protection, we can help users feel more in control, commented Jess Houlgrave, CEO of Reown.
Currently, 44% of users opt to use multiple wallets for security reasons, an increase from the 32.8% recorded in 2024. Moreover, 18% of respondents cite security concerns, such as hacks and fraud, as obstacles to greater adoption of on-chain transactions.
Challenges in Mainstream Crypto Adoption. Source: Reown
Along with security concerns, high fees deter 39% of users from deeper engagement with the blockchain. Meanwhile, 30% believe that lower fees would encourage greater participation.
Challenges for the next wave of cryptocurrency adoption
In fact, investors also emphasized the need for interoperability, with 47% considering it very important. Additionally, 18% cited the lack of interoperability as an obstacle. Despite this, only 14% listed it as one of the central issues that need to be addressed.
Therefore, the report draws attention to the need for developers to focus on real-world use cases, ensuring seamless, secure, and cost-effective user experiences. It also highlights a disconnect between user expectations, centered on payments and social applications, and current behavior, which remains heavily focused on trading.
Understanding and addressing this dynamic will be crucial to achieving true mass adoption, the report noted.
With 67% of survey participants optimistic about crypto development, the ecosystem on the blockchain is ready to grow. However, addressing issues of security, fees, and interoperability will be essential to unlock its full potential and drive the next wave of mass engagement.
The article Do Payments and AI Drive the Next Wave of Crypto Adoption? was first seen on BeInCrypto Brazil.
