Despite the rise of stablecoins and growing fintech adoption, crypto payments remain on the fringe of everyday usage. A new report sheds light on the friction points preventing Web3 payments from breaking into the mainstream.
The 2025 State of Onchain UX report, published by Reown with support from Nansen AI, offers an in-depth look at how users interact with on-chain tools, wallets, and applications. Drawing on responses from 1,038 active crypto users in the U.S. and U.K., it reveals a key insight: while infrastructure is growing, poor user experience, fragmented tools, and security concerns continue to hinder broader adoption.
How People Actually Use Crypto
According to the survey, the most common use cases for crypto remain trading (56%), DeFi (45%), and real-world payments (47%). Yet, only 12% of users listed payments as their favorite activity, indicating a disconnect between perceived utility and actual preference.
Bitcoin remains the most held asset, while stablecoin adoption has nearly doubled over the past year rising from 20% in 2024 to 37% in 2025. This signals growing interest in using crypto for stable-value transfers, particularly across borders.
Multi-Wallet Use and Chain Fragmentation
62% of respondents now use two or more wallets, driven by the need for chain access (48%) and added security (44%). Wallets like MetaMask, Trust Wallet, Phantom, and exchange-linked options such as Coinbase and Binance rank among the most commonly used.
Users no longer rely on a single blockchain. Instead, Ethereum serves as the primary settlement layer, while Solana leads in high-frequency, low-cost trading. Base, Coinbase’s Layer 2, is gaining traction among experimental app users, while BNB Chain continues to support small, frequent trades within its ecosystem.
Cross-chain compatibility is critical over 80% of users rate it as important or very important. This trend reflects an increasingly modular Web3 world where no single chain dominates.
Security: Better Perception, Rising Threats
User confidence in wallet security has risen to 69%, up from 50.5% in 2024. However, actual threats are on the rise. 21% of users reported being impacted by phishing attacks, up from 14.4% the year prior.
Blind signing remains widespread, and while clearer signing interfaces like “Clear Signing” are gaining attention, they haven’t seen broad adoption. Users overwhelmingly feel that platforms aren’t doing enough 56% say stronger protections are still needed.
Payments Need to Feel Effortless
While over half of users (54%) reported using crypto to buy goods or send funds, few ranked payments among their favorite use cases. High transaction fees, poor app design, and inconsistent network experiences remain persistent barriers.
Despite advancements, many wallets still require multiple steps to fund or bridge, introducing friction even for seasoned users. Cross-network usability remains patchy, making crypto payments slower and more cumbersome than Web2 alternatives in developed regions like the U.S. and U.K.
That said, enterprise integrations are growing. Stripe, PayPal, and Paxos are embedding crypto payment rails into their platforms expanding crypto’s reach in retail and commerce.
Progress With Friction
The report makes one thing clear: crypto payment infrastructure is evolving, but the user experience hasn’t caught up. Web3 tools must become as effortless, secure, and intuitive as legacy systems if crypto is to transition from a speculative asset to a reliable payment method.
Until then, crypto will remain a powerful tool just not the first one users reach for.
