Ethereum Sets Record Stablecoin Volume of US$480 Billion, Reclaims Dominance in the DeFi Ecosystem

Ethereum has once again solidified its position as the primary backbone of the Decentralized Finance (DeFi) ecosystem, following a significant surge in network activity recorded throughout May 2025. According to recent data, the volume of stablecoin transactions on the network hit an all-time high—surpassing US$480 billion—driven by automated bot activity and a shift in dominance from layer‑2 to layer‑1 protocols.

Bots Drive Transaction Surge in DeFi

According to a report by CEX.io on June 4, there were 4.84 million stablecoin transfers on the Ethereum network in May, the majority of which were executed by automated bots. This activity generated a staggering transaction volume of US$480 billion, marking the highest figure in Ethereum’s blockchain history.

This surge has reshaped the decentralized exchange (DEX) landscape on the network, where stablecoin swaps now account for 32–37% of total DEX trading volume. USD Coin (USDC) emerged as the most dominant token in this trend, highlighting the strong preference for dollar-backed stablecoins among DeFi participants.

Layer‑1 Capitalization Rises, Ethereum's Dominance Strengthens

Stablecoin capitalization on Ethereum’s main network (layer‑1) also rose by 11% throughout 2025, while layer‑2 platforms saw a modest decline of approximately 1%. These findings indicate a return of Ethereum layer‑1 as the central gravitational hub of the DeFi ecosystem.

This resurgence was largely fueled by low gas fees during the first half of the year, which enhanced transaction efficiency and attracted increased activity from a range of DeFi protocols.

Post-Upgrade Challenges: Fragmentation & Fee Volatility

Nevertheless, Ethereum still faces notable challenges. Cross-layer fragmentation and gas fee volatility remain persistent issues, particularly after the implementation of the Pectra upgrade, which led to a spike in transaction costs. As a result, stablecoin volume temporarily dropped by around 8%, accompanied by a US$1 billion decline in market capitalization.

These challenges underscore the need for a more efficient and integrated cross-layer architecture to ensure Ethereum’s long-term dominance.

Summary and Future Outlook

• Bots accounted for 4.84 million transfers, totaling US$480 billion in stablecoin volume.

• Ethereum DEX stablecoin trades now represent 32–37% of total DEX activity.

• Layer‑1 stablecoin capitalization increased by 11%, reinforcing Ethereum’s supremacy over layer‑2.

• Main challenges: ecosystem fragmentation and gas fee volatility post-upgrade.

With this positive momentum, Ethereum has successfully redirected DeFi dominance toward large-scale stablecoin usage. Going forward, key priorities will include optimizing transaction cost efficiency, enhancing cross-layer interoperability, and strengthening security and liquidity to sustain the long-term stability of the global DeFi ecosystem.