Will DePIN Be the Next Big Breakthrough Amid Capital Enthusiasm?
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In the ever-changing crypto market, every emerging concept has the potential to become the next market hotspot. Looking back, from "DeFi Summer" to "NFT & GameFi Summer" and the "Metaverse," each concept has influenced the landscape of the crypto market. In recent years, "DePIN" has gradually become the focus of attention, attracting a surge of capital and interest. Messari's research report boldly predicts that by 2028, the market size of DePIN could reach $3.5 trillion.
So, with such a vast market outlook, can DePIN become the next big breakthrough in the crypto market? This is undoubtedly a question that many investors and industry professionals are closely watching.
Current State of DePIN Development
DePIN, or Decentralized Physical Infrastructure Networks, is a new type of network model that leverages blockchain technology to incentivize users to share and manage physical infrastructure. It encompasses multiple fields, including computing, storage, networking, sensors, and energy. The goal is to enhance resource utilization efficiency, reduce operating costs, and promote technological innovation through a decentralized approach.
Currently, the DePIN sector has already taken shape, with the total market cap approaching $21.23 billion, representing a 17.1% increase since the beginning of the year. According to DePINscan data, as of August, there are approximately 276 DePIN-related projects, mainly categorized into AI, wireless, energy, services, sensors, data, and computing. Moreover, the competitive landscape of DePIN shows a clear leading effect, with the top 10 projects accounting for about 80.5% of the market cap, reaching $17.08 billion.
Inflow of Capital: Driving the Evolution of the DePIN Market
This year, venture capital investment in DePIN projects has seen a significant recovery. Major investment institutions have established large funds for DePIN, such as Borderless Capital's $100 million fund, the joint $500 million fund from Hodler Investments and Gewan Holding, and Bitrue Ventures' $40 million fund. Meanwhile, the SOLLONG Foundation, Lemniscap, and others have also announced major funding plans focused on nurturing early-stage DePIN and Web3 projects.
As capital pours in, the DePIN market is experiencing a rapid growth phase. This strong influx of capital has given rise to many new DePIN stars, including Project Zero in the renewable energy sector, which secured $12 million in funding, the flight tracking network Wingbits, which raised $3.5 million in seed funding, and projects like Andrena on Solana and Daylight on Base, which raised $18 million and $9 million respectively. Additionally, projects such as Verida, Peaq, and Blockless have also achieved rapid growth through multiple rounds of funding, with total amounts reaching tens of millions of dollars.
Why is DePIN Gaining So Much Attention and Expectation?
The reason DePIN has garnered widespread attention and anticipation lies in its innovative integration of crypto incentive mechanisms, decentralized architecture, and community-centered governance models. This has brought revolutionary changes to the financing, operation, and governance of traditional infrastructure.
- DePIN, with its unique crypto incentive mechanism, opens a more efficient and flexible path for capital allocation in capital-intensive and high-maintenance infrastructure projects. By operating in a decentralized manner, DePIN can break free from reliance on traditional funding models, allowing for flexible mobilization and optimized allocation of resources. This, in turn, drives the creation of more competitive services and products, meeting society's urgent demand for efficient and convenient infrastructure.
- The DePIN network builds a highly redundant distributed system, enhancing stability and reliability by decentralizing data and services across multiple nodes. This design ensures that even in the face of single-node failures or network fluctuations, the entire network can continue to operate smoothly, providing a solid guarantee for the stable operation of infrastructure.
- DePIN adopts a community-centered management approach, giving local communities direct participation rights in network management, allowing resource allocation and maintenance decisions to be closely aligned with grassroots and practical needs. This community-led management model injects new energy and momentum into infrastructure governance and operations, providing valuable insights and inspiration for future urban governance and public services.
Final Thoughts
Although DePIN has seen a surge of capital inflows, we must also acknowledge the uncertainties it faces. Rating agency Moody's highlighted in its report that the widespread adoption of DePIN could encounter significant challenges, such as legal regulations, interoperability issues, and cybersecurity risks.
In this context, MEXC has keenly recognized the strong interest and potential demand for the DePIN sector. Not only has MEXC listed a variety of DePIN projects, but it has also set up a dedicated DePIN section, providing investors with more diversified trading options. Additionally, MEXC has introduced ultra-low trading fees, reducing the trading costs for users.
The DePIN market, fueled by strong capital interest, is showing tremendous potential and vitality. As for whether DePIN can truly become the next major market focal point and breakthrough, MEXC will maintain a high level of attention and closely track its every developmental move.
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