2025 witnessed a surge in Arbitrum decentralized exchange (DEX) activity, with its monthly volume reaching an all-time high. On-chain activity on the Ethereum Layer 2 scaling solution surged as more users flocked to the platform for faster and cheaper DeFi transactions. This growth signals increased user demand for DeFi applications on Arbitrum, a sign of a thriving ecosystem that benefits from low fees and fast transaction speeds. Several factors contributed to this record-breaking performance. The broader DeFi sector rebounded in 2025, attracting users to Arbitrum’s efficient L2 platform. The launch of new protocols and incentive programs further encouraged users to migrate liquidity to Arbitrum. Additionally, the adoption of native Arbitrum apps such as GMX, Radiant, and Camelot, along with cross-chain liquidity flows, significantly contributed to DEX volume growth. The latest milestone underscores Arbitrum’s rising prominence in the DeFi space. With its efficient infrastructure and growing ecosystem of protocols, Arbitrum is becoming a preferred option for users seeking faster, cheaper alternatives on Ethereum mainnet.