Curve founder predicts specialised DEX growth in 2025

Michael Egorov, founder of Curve Finance, expects specialised decentralised exchanges (DEXs) to expand in 2025, particularly in areas like cross-currency stablecoin swaps.

Egorov highlighted inefficiencies in exchanging stablecoins pegged to different fiat currencies, such as euros and dollars, as a key challenge for innovation.

“Exchanges between stablecoins of different denominations like the Euro, US dollar, and others are not yet properly solved. How to provide liquidity without losing money, but while earning a lot of money, is kind of an open question that I think will be solved soon,” he said.

The rise of purpose-built DEXs aligns with broader stablecoin adoption trends.

A report by Dune Analytics and Artemis found stablecoin market capitalisation surpassed $227 billion, with active addresses growing 53% year-over-year to 30 million.

Institutional interest is also increasing, as a Coinbase and EY-Parthenon survey found 83% of institutional investors plan to expand their crypto holdings in 2025.

Regulatory uncertainty remains a challenge.

Egorov noted that financial regulators often apply outdated frameworks to DeFi.

However, recent U.S. legislative moves, such as repealing the IRS broker rule requiring DeFi platforms to report transactions, signal shifting attitudes toward decentralised finance.

While both centralised and decentralised stablecoin solutions are expanding, Egorov emphasised the need for tailored platforms.

Foreign exchange-focused DEXs, for instance, could streamline cross-border transactions by removing intermediaries and reducing volatility risks.

The growth of specialised DEXs reflects broader market maturity.

DeFiLlama data shows DEX trading volumes reached new highs in early 2025, driven by demand for decentralised financial tools.

As institutions and developers explore tokenised assets and DeFi infrastructure, the success of specialised DEXs will depend on solving real-world challenges while adapting to evolving regulations.