Arbitrum DeFi Protocols Attract 2.4 Million Users, TVL Surges 60%

Written byCoin World
Saturday, Jul 5, 2025 7:38 pm ET2min read

The Arbitrum network has witnessed a significant surge in user interaction and protocol liquidity, driven by robust activity from leading decentralized applications (DApps). By June 2025, the top DeFi protocols on the network, including

(UNI), Fluid (FLUID), 1inch (1INCH), CoWDAO (COW), and (SUSHI), collectively attracted over 2.4 million users. Concurrently, the total value locked (TVL) in these DApps skyrocketed to $950 million, underscoring the network's growing prominence within the broader DeFi ecosystem.

The DeFi segment within Arbitrum experienced a remarkable growth spurt in June 2025, with user interactions and liquidity increasing by as much as 60 percent. This growth was primarily driven by Uniswap, Fluid, and SushiSwap, which indicated a strong demand for effective and affordable DeFi services. Future iterations of the Layer 2 ecosystem of Arbitrum will also be determined by long-term protocol advancements and user incentives.

Uniswap (UNI) remains one of the most popular DeFi protocols on the Arbitrum network, attracting substantial liquidity and user activity. In June, Uniswap on Arbitrum experienced one of its most significant growth spurts as users sought contracts with lower gas charges and higher transaction speeds compared to the

mainnet. The platform’s automated market maker (AMM) structure enabled it to process a large share of Arbitrum’s total trading volume. Despite broader market fluctuations, UNI maintained its position as a superior and dynamic player in decentralized finance by offering unparalleled liquidity depth and consistent user retention.

Fluid (FLUID), though lesser-known compared to legacy protocols, posted one of the most remarkable and innovative growth spurts among Arbitrum DApps last month. By acting as a liquidity optimization layer, Fluid aggregates fragmented liquidity across decentralized exchanges (DEXs), offering users improved price execution. The protocol’s growth reflects rising demand for routing efficiency in decentralized trading. As liquidity fragmentation becomes a challenge for many Layer 2 platforms, Fluid’s unmatched optimization technology positions it as a revolutionary tool in improving DeFi capital efficiency on Arbitrum.

1inch (1INCH) continued to play a critical role in Arbitrum’s DeFi landscape through its elite and innovative aggregation services. Through smart routing algorithms, the platform separates trades in various liquidity pools to enable its users to obtain better prices with less slippage. In June, 1inch registered an exceptional growth in transaction volume as traders demanded more efficient trade execution in turbulent market conditions. Its growth underscores the increasing relevance of liquidity aggregation services on Layer 2 networks like Arbitrum.

CoWDAO (COW) demonstrated its phenomenal abilities by executing decentralized batch auctions, optimizing order flow for the liquidity providers and users alike. CoWDAO gained momentum in Arbitrum by virtue of its ability to minimize transactional expenses via unparalleled execution of trades. The DAO’s unique mechanism acts to protect users from miner extractable value (MEV), keeping the trading process safer and more transparent. CoWDAO’s performance in June helped to highlight its pioneering and profitable role in building fairer DeFi trading systems.

SushiSwap (SUSHI), one of the oldest DeFi protocols, experienced breathtaking growth in June following the implementation of new liquidity bonuses alongside protocol enhancements. SushiSwap’s TVL and user base kept growing on Arbitrum, fueled by improved user interface bug fixes and creative staking products. The platform continues to attract liquidity providers seeking diversified yield potential on Layer 2 networks. SushiSwap’s competitiveness in a competitive market reflects its superior and profitable position in the emerging DeFi space.

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