Ethereum is experiencing a resurgence in the decentralized finance (DeFi) sector in 2025, driven by a significant increase in bot activity and stablecoin transactions. In May, automated bots facilitated 4.84 million stablecoin transfers on Ethereum’s mainnet, amounting to a record $480 billion in volume. This uptick is attributed to reduced transaction fees in early 2025, reversing a trend of users migrating to alternative blockchains and layer-2 networks.
The Ethereum mainnet’s stablecoin market capitalization has grown by 11% this year, reclaiming market share from its layer-2 counterparts, whose combined stablecoin market saw only a 1% decrease. Bots, previously criticized for exploitative practices, are now recognized for enhancing liquidity and efficiency on decentralized exchanges (DEXs). Stablecoin swaps have become the leading trading category on Ethereum DEXs, with Circle’s USDC emerging as the most-traded asset.
Analysts suggest that Ethereum’s focus on stablecoins indicates a shift towards real-world applications, particularly in facilitating fast, reliable, and borderless payments in emerging markets. However, to maintain its leadership in DeFi, Ethereum must address challenges such as liquidity fragmentation across its various layers. Resolving these issues is crucial for Ethereum to solidify its position as a primary settlement layer for stablecoins and DeFi infrastructure.
