On-chain fees paid by users fell by approximately 50% year-over-year in Q1 2026, with a quarter-over-quarter decline of 26%, according to research by 1kx. The overall decrease was primarily driven by the DeFi sector, with Perp DEX experiencing the most significant impact, followed by the wallet and consumer segments. Notably, some protocols such as Quanto, Lava, and Rezerve Money, which had fees exceeding $100,000 last quarter, saw their fees drop to zero this quarter.