Decentralized Physical Infrastructure Networks projects (DePINs) have seen a tremendous amount of traction over the last year. DePIN will outpace the growth of crypto markets in 2024. The reason for this is that AI has become a major force on the global stage.
According to new data, this sector is currently holding less than 0.1 percent of the market’s $1 trillion addressable value.
DePIN is The “Frontier”
Decentralized networks are faster, more reliable and cheaper than centralized companies. DePIN Messari’s most recent report projects that the market will grow by 100-1000x within a decade. report.
The ‘interesting’ thing about the “chain wars” Solana has gained a larger share of the market, while Base is also gaining. Wormhole’s and LayerZero’s interoperability have led DePINs towards multi-chain strategy, increasing their users but also fragmenting the liquidity. Messari said that Solana was a liar. “latency-focused” Base has been able to attract consumer-focused creators due to its brand, retail distribution and Coinbase.
DePIN’s strong listing condition encouraged early-stage VCs to invest aggressively. Funding at pre-seed, seed and Series A levels was more common in private markets than on public ones. On liquid markets however, those projects with lower FDVs had the greatest returns.
Virtuals Protocol led the way with a growth of over 300%. NEURAL, NodeAI and other tokens also performed well. Each grew by more than 2000%.
Top-tier VCs supported a few select projects with late-stage funding. They launched their tokens with a 50-100x increase in book value. These projects often reached FDVs that were multi-billion dollar. The community’s efforts were also crucial, as $230 millions was raised by 2024 through node sales and crowdfunding.
DePIN also helps local governments address infrastructure issues. The report states that it is being used by leaders to tackle key issues, including promoting AI sovereignty in Tanzania, and closing the digital divide, in order to reach voters and win elections.
DePIN to grow in 2025
Pantera Capital, a crypto hedge fund, and venture capitalist firm recently announced a partnership. predicted DePIN could be crucial in 2025, as regulatory clarity may eliminate key barriers to investors and innovators.
Grayscale Research echoed DePIN is a top priority on its Top 20 Crypto Investment List.
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Source: cryptopotato.com
