Ethereum’s DEX ecosystem is thriving with a 73% surge in trader activity, Aave’s TVL doubling to $12 billion, and rising user engagement, marking a strong DeFi comeback as of May 2025.

Ethereum DEX Activity Reaches 3-Month High with 64,000 Users

On May 20, 2025, Ethereum’s DEX trader activity has surged by 73% this month, with daily active users reaching 64,000, a three-month high from a May 4 low of 37,000. 

Source: The Block

Despite this, monthly DEX trading volume remains flat at $15 billion, with Uniswap UNI capturing 97% of traders ($13 billion of the volume), highlighting its dominance and the prevalence of smaller retail trades driving the uptick. 

Historically, such retail-driven activity has preceded broader market participation, hinting at potential growth in the coming weeks. 

Additionally, Aave’s TVL reached $40 billion as of May 2025, up from $20 billion in late 2024, driven by renewed interest in yield farming and lending.

Learn more: Aave TVL Doubles Post-Downturn, Signaling Ethereum DeFi’s Comeback?

This growth reflects growing confidence in Ethereum’s DeFi infrastructure, bolstered by its dominance in real-world asset tokenization and decentralized finance applications. 

Beyond Uniswap and AAVE, other metrics and protocols illustrate Ethereum DeFi’s upward momentum. 

According to Grow The Pie, the number of unique addresses interacting with Ethereum DeFi protocols is reaching an all-time high of around 15 million. This surge in user activity indicates growing adoption and engagement. 

Source: Grow The Pie

Additionally, Curve Finance, a major decentralized exchange for stablecoins, reported a 30% increase in its Ethereum-based TVL, climbing to $2.4 billion as of May 20, 2025, per DefiLlama.

Source: DefiLlama

Pectra Upgrade and Market Recovery Fuel Ethereum DeFi Growth

Several factors are driving Ethereum DeFi’s comeback. The Pectra upgrade has significantly enhanced Ethereum’s scalability and user experience. 

11 Ethereum Improvement Proposals (EIPs) implemented in Pectra help improve staking efficiency, wallet usability, and gas efficiency. A key feature is EIP-3074, which simplifies DeFi interactions by enabling account abstraction, reducing transaction steps, and lowering costs for users engaging with protocols like Uniswap and Aave. This has made Ethereum ETH DeFi more accessible, contributing to the 73% surge in trader activity.

A broader market recovery also plays a role. After a downturn in late 2024, the crypto market has bounced back, with Ethereum’s price rising nearly 50% post-Pectra to $2,700. 

Additionally, Ethereum’s ecosystem expansion through Layer-2 solutions like Arbitrum ARB, whose DeFi TVL hit $2.5 billion, has reduced gas fees and attracted more users, as shown in 3 million daily transactions.

No doubt @Arbitrum is the top L2 out there

– Stablecoin Mcap: $2.6B
– TVL: $2.5B
– 3M txns daily
– Weekly DEX Volume: $6B+
– Weekly app revenue: $1M+
– @l2beat STAGE-1$ARB ecosystem is seeing massive growth beating all other L2s. pic.twitter.com/gO58FRKdkk

— Immortal (@BitImmortal) May 18, 2025

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