Key Takeaways:
$480B stablecoin volume processed on Ethereum in May 2025 — a new all-time high.
4.84M stablecoin transfers were bot-executed, enhancing efficiency.
USDC led all trading activity, reflecting a shift to utility-based DeFi.
Ethereum Layer-1’s stablecoin market cap grew by 11%, reclaiming market share.
Challenges ahead include layer fragmentation and the need to maintain low fees.
Ethereum Regains DeFi Ground as Bots Power Record $480B Stablecoin Volume in May
Ethereum is staging a powerful return to the center of decentralized finance (DeFi), reclaiming its position as a primary settlement layer thanks to a record-breaking surge in stablecoin transactions. According to a June 4 report by crypto platform CEX.io, automated bots facilitated over 4.84 million stablecoin transfers, driving $480 billion in trading volume on Ethereum Layer-1 in May 2025 — its highest ever.
Bots Boost Efficiency, Push USDC to the Top
Once criticized for controversial strategies like MEV and sandwich attacks, trading bots are now being credited with improving liquidity and stabilizing Ethereum's DeFi ecosystem. In May, bots elevated stablecoin swaps to 32% of all Ethereum DEX volume, up from 37% in April. USDC became the most-traded asset on the network.
CEX.io’s lead analyst Illia Otychenko attributes the comeback to lower gas fees in Q1 2025, which reversed user and liquidity migration trends to Ethereum layer-2 solutions and alternative chains.
Ethereum's Mainnet Sees 11% Stablecoin Market Cap Growth
The renewed demand for stablecoin utility drove an 11% increase in mainnet stablecoin market capitalization in 2025. Despite Ethereum L2s losing only 1% of their share, the trend suggests a return to Layer-1 as a preferred settlement layer — especially for payment-driven and real-world applications.
“Speculative tokens come and go, but stablecoins stick because they solve real problems,” said Otychenko.
He emphasized rising demand for borderless, fast, and stable payments, particularly in emerging markets, as a key driver behind Ethereum’s resurgence.
Fragmentation Still a Major Hurdle
Despite the surge, analysts warn Ethereum’s next chapter hinges on more than transactional volume. Cross-layer cost and liquidity fragmentation remain a barrier, threatening Ethereum’s ability to maintain its leadership in DeFi infrastructure.
“This isn’t just a technical issue. It’s what will decide whether Ethereum leads or lags in the next phase of adoption,” Otychenko told Cointelegraph.
