Wu says that according to 1kx research, the on-chain fundamentals in Q1 2026 are mixed, with on-chain user payments decreasing by approximately 50% year-over-year and down 26% quarter-over-quarter; the overall decline is mainly driven by DeFi, with Perp DEX experiencing the largest impact, followed by wallets and the Consumer sector; some protocols that had over $100,000 in fees last quarter have now dropped to zero this quarter, including Quanto, Lava, and Rezerve Money.

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