1kx report: crypto wallet revenue fell 60% in H1 2026

In short

• Crypto wallet revenues fell 60% in H1 2026 to about $0.4bn, from $1.1bn a year earlier, according to the 1kx Blockchain Revenue Report 2026.
• The consumer and front-end category that includes wallets shrank 11% to $5.0bn, while gambling and gaming rose 8% to $3.3bn.
• Wallets earn largely from swap and interface fees, so fewer trades at lower prices cut revenue even as some on-chain activity rose, Crypto Briefing reported.
• OneBullEx says traders may face higher effective costs as wallets reduce gas subsidies and cashback rewards.

Crypto wallet revenues dropped 60% in the first half of 2026 to about $0.4bn, from $1.1bn a year earlier, according to the 1kx Blockchain Revenue Report 2026. Crypto Briefing and OneBullEx reported the figures on 2 November 2026, and a chart seen by InvestIn.News shows the same $1.1bn to $0.4bn fall. The consumer and front-end category that includes wallets shrank 11% to $5.0bn from $5.6bn, while gambling and gaming revenue rose 8% to $3.3bn.

Why did wallet revenues halve?

1kx is a venture firm that has backed multiple wallet startups, according to OneBullEx. Crypto Briefing reported that the 1kx Blockchain Revenue Report 2026 came out in late October 2026 and draws on data running to the end of Q3 2026. Wallets earn much of their income from fees, including charges on in-app swaps and interface fees added to transactions. Fewer trades at lower crypto prices mean fewer and smaller fees. The 1kx report notes that on-chain transaction volumes rose in some segments even as fee income fell, suggesting users have cut back on the high-fee activity wallets rely on.

What the crypto wallet revenue numbers show

The chart seen by InvestIn.News breaks the consumer category into four lines. Wallet revenue fell from $1.1bn in H1 2025 to $0.4bn in H1 2026, a 60% decline. Gambling and gaming rose from $3.1bn to $3.3bn and now dominates the category, while DePIN (decentralised physical infrastructure networks) total revenue declined 10% year-over-year to $0.4 billion. Other consumer segments were mixed or softer, according to unfolded (@cryptounfolded) on X.

What the crypto wallet revenue drop means for users

OneBullEx says that when wallet revenue drops, liquidity provision often becomes thinner and wallets have less incentive to subsidise gas or pay cashback. In practice, that can mean higher transaction costs for crypto users. Wallets are responding by pursuing new revenue models, including institutional custody and embedded finance, though OneBullEx describes these efforts as still early-stage.

How the wider sector held up

The 1kx report links the wallet decline to softer asset prices and reduced trading activity across crypto, according to Crypto Briefing. It projects total blockchain revenues of about $100bn for 2026, down 28% from $140bn in 2025, roughly in line with a 30% fall in average Bitcoin prices. Odaily reported the same full-year forecast. At the time of writing (22:58 UTC on 2 November 2026), Bitcoin (BTC) traded at $76,747, down 1.64% in 24 hours, with a market value of $1.54tn, according to InvestIn.News market data. Ethereum (ETH) traded at $2,251, down 0.71% in 24 hours, and the total crypto market value stood at $2.6tn, according to InvestIn.News market data.

How the figures spread on X

The numbers circulated on X late on 2 November 2026. unfolded (@cryptounfolded) posted the headline and a thread with the sector breakdown, while MarketNewsFeed (@MarketNews_Feed) and NodeWire (@NodeWire) posted the same wallet revenue drop.

Key numbers

Questions readers ask

Why did crypto wallet revenues drop 60% in H1 2026?

Crypto wallet revenues fell because wallets earn much of their money from swap and interface fees. Fewer trades at lower crypto prices meant fewer and smaller fees, according to Crypto Briefing and the 1kx Blockchain Revenue Report 2026, even as some on-chain activity rose.

What does the crypto wallet revenue drop mean for users?

OneBullEx says reduced wallet revenue often correlates with thinner liquidity and fewer incentives for wallets to subsidise gas costs or offer cashback, so users may face higher effective transaction costs. Users can check their wallet app for changes to swap fees and reward programmes.

Which sector now dominates consumer crypto revenue?

Gambling and gaming rose 8% to $3.3bn in H1 2026, making it the dominant category in the consumer and front-end bucket that 1kx tracks, while wallets fell to about $0.4bn.

Our view

At InvestIn.News, we think the 60% fall in wallet revenue shows how exposed wallet business models are to trading volumes and fee capture. The same report has gambling and gaming at $3.3bn, now the largest consumer category, which suggests users kept spending on entertainment while fee-generating trading cooled.

We read the figures as one venture firm's categorisation, not audited company filings. The report ties the decline to softer asset prices and reduced trading, not a single product failure, and it does not single out particular wallets.

We would change our view only if major wallet providers publish their own first-half numbers, or if another independent dataset shows wallet revenue recovering as trading volumes return.

How we reported this: the story draws on reporting by unfolded (@cryptounfolded) on X, Crypto Briefing, OneBullEx and Odaily. It also uses the two public posts shown in the story, InvestIn.News market data and first-hand reporting by our writer. Each source is linked in the text and listed under Sources.

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Jayshree Majumdar