Payments and AI: Key Drivers for the Next Wave of Crypto Adoption, Report Says

A recent report from Reown reveals that the on-chain ecosystem is maturing, with users expanding their participation beyond trading activities. Many believe that payments and artificial intelligence (AI) will play a crucial role in driving widespread technology adoption.

Despite optimism about the future of cryptocurrency, challenges such as fees, security, and interoperability persist.

The Future of Cryptocurrency Adoption

Reown shared its report, "Onchain UX Status," with BeInCrypto. The report is based on a survey of 1,038 active cryptocurrency users in the US and UK, conducted from 02/19 to 02/26/2025.

Results show that 37% of users believe payments, including stablecoins and money transfers, will drive widespread adoption. The report also noted an increase in stablecoin usage, from 20% last year to 37% this year.

Cryptocurrency wallet usage has also increased. Reown observed that in 2024, the average number of wallets across all regions increased 1.27 times.

Moreover, 54% of users are now transacting with cryptocurrency for payments, indicating a growth in actual usage.

"For cryptocurrency payments to truly become mainstream, they must be as easy as traditional fintech experiences. Users should be able to transact easily without understanding blockchain mechanisms," wrote Mirna Barca, Reown's Payment Product Manager.

AI is seen as another important driver, with 35% of users identifying it as a significant catalyst for adoption. However, despite AI's potential, some skepticism remains about blockchain's role in AI development.

Only 29% believe these two technologies will complement each other. Meanwhile, just 18% see cryptocurrency as a driving factor for AI's progress.

"While transactions currently dominate user activity, payments and AI emerge as two themes users feel will play a larger role at scale, suggesting that the top services users access today do not reflect what they believe will drive its long-term value," the report stated.

Additionally, regulatory advances and tokenization are seen as the next areas that could contribute to widespread adoption, with 26% of users identifying each factor as important. Under President Donald Trump's administration, cryptocurrency regulation has been a focal point.

Immediately after President Trump's inauguration, the SEC established a cryptocurrency task force to create a clear regulatory framework for digital assets. In fact, the new SEC chairman Paul Atkins also emphasized the importance of cryptocurrency regulation, calling it a 'top priority'.

This focus has significantly contributed to industry optimism, and user data supports this. 86% of users believe it will drive widespread adoption, while 14% think it will slow innovation.

"We are in the final stage of regulatory uncertainty in the US. In Europe, MiCA is finally taking shape, but the lack of precedent has forced innovators to guess, similar to the US. The industry is on the verge of regulatory clarity, but we haven't fully achieved it," commented Marco Santori, Director of WalletConnect Foundation.

What Top Factors Are Hindering Widespread Cryptocurrency Adoption?

However, before widespread adoption can occur, users believe some areas need improvement. Better security leads, with 33% of users considering it crucial for widespread adoption. Moreover, 25% of users emphasize privacy and data protection standards.

Trust in on-chain security has significantly increased, with 69% of users feeling safe, up from 50.5% last year. However, phishing attacks have also risen. Reported phishing attack numbers by users increased to 21%, from 14.4%.

"Phishing attacks are increasing, and that's a problem. But security UX still hasn't reached the necessary level. If we can make transaction signing more transparent and build fraud protections, we can help users feel more in control," commented Jess Houlgrave, CEO of Reown.

A notable figure is that 44% of users now use multiple wallets for security reasons, increasing from 32.8% in 2024. Additionally, 18% of users believe security concerns like hacks and scams are barriers to on-chain participation.

Along with security concerns, high fees prevent 39% of users from deeper chain involvement. Meanwhile, 30% believe lower fees would encourage more participation.

Notably, users also emphasized the need for interoperability, with 47% considering it very important. Additionally, 18% believe lack of interoperability is a barrier. However, only 14% list this as one of the core issues that need to be addressed.

Therefore, the report emphasizes the necessity for developers to focus on practical use cases, ensuring a seamless, safe, and cost-effective user experience. It also highlights the difference between user expectations, focusing on payment and social applications, and current behavior, which remains primarily focused on transactions.

"Understanding and addressing this dynamic will be crucial to achieving true widespread adoption," the report notes.

With 67% of survey participants optimistic about cryptocurrency development, the on-chain ecosystem is ready for growth. However, addressing security, fee, and interoperability issues will be essential to fully exploit its potential and drive the next wave of mainstream participation.