Ethereum is reclaiming its position at the heart of decentralized finance (DeFi) in 2025, as a surge in stablecoin activity and bot-driven efficiency revives the Layer-1 network’s relevance. Once challenged by rival blockchains and its own Layer-2 (L2) rollups, Ethereum’s mainnet is witnessing a significant resurgence, one powered by automation, stablecoins, and an evolving user base demanding more utility than speculation.
Bot-Driven Boom Sparks $480B in Stablecoin Volume
According to a 4 June report from crypto trading platform CEX.io, automated bots processed 4.84 million stablecoin transfers on Ethereum’s Layer-1 in May 2025, totalling an unprecedented $480 billion in volume. This figure marks Ethereum’s highest-ever monthly volume for stablecoins and represents a key turning point in the network’s recovery.
The resurgence has been partially attributed to lower gas fees in Q1 2025, which made ETH more competitive and attractive again after years of high costs driving users and liquidity toward cheaper alternatives. Illia Otychenko, lead analyst at CEX.io, noted that the lower costs reversed a multi-year trend and restored confidence in Ethereum’s mainnet.
Mainnet Stablecoin Market Share on the Rise
Ethereum’s mainnet has benefited directly from this renewed activity, with its stablecoin market capitalisation growing by 11% in 2025. While this growth came partially at the expense of Layer-2 networks, the shift was not drastic, the combined stablecoin market on L2s only saw a 1% contraction, signalling a more nuanced redistribution of liquidity rather than a mass exodus.
This change also reflects Ethereum’s growing role as a settlement layer for stablecoins, rather than merely a host for speculative DeFi projects. Otychenko believes this signals a deeper shift in Ethereum’s utility, aligning with broader real-world use cases such as payments, remittances, and financial inclusion in emerging markets.
From MEV Villains to Market Makers
Once maligned for engaging in maximum extractable value (MEV) strategies and sandwich attacks, trading bots are now earning cautious praise for their role in stabilising the Ethereum DeFi ecosystem. Their actions have improved market efficiency and liquidity, particularly in stablecoin trading.
In April and May, stablecoin swaps dominated Ethereum DEXs, accounting for 37% and 32% of total trading volumes, respectively. This shift suggests that users are increasingly favouring utility and predictability, hallmarks of stablecoins, over high-risk trading tokens.
Notably, Circle’s USDC emerged as the most-traded asset on ETH, dethroning volatile tokens and further cementing stablecoins as the backbone of modern DeFi activity.
Real-World Use Cases and the Road Ahead
Otychenko emphasised that ETH’s pivot to stablecoin utility is not a temporary phase, but a reflection of genuine user demand for fast, borderless, and dependable digital money. “Speculative tokens come and go, but stablecoins stick because they solve real problems,” he told Cointelegraph, highlighting the importance of reliable payment systems in less-developed financial markets.
However, despite this positive momentum, ETH faces critical structural challenges. Chief among them is the issue of liquidity fragmentation across its multiple layers, which can hinder user experience and capital efficiency. “This isn’t just a technical issue,” Otychenko warned. “It’s what will decide whether Ethereum leads or lags in the next phase of adoption.”
ETH’s latest growth phase is being driven not by hype cycles, but by infrastructure improvements, bot automation, and real-world use cases anchored in stablecoins. If the network can sustain low transaction costs and address fragmentation, Ethereum could redefine itself not just as the original DeFi chain, but as the go-to settlement layer for a global, utility-driven crypto economy.
