According to Cointelegraph, decentralized physical infrastructure networks (DePINs) are set to become Web3’s next significant use case, with the potential to attract a substantial number of new users to the crypto space. This insight comes from a report released on September 5 by MV Global, a Web3 investing firm.
The report highlights that real-world adoption of DePINs has accelerated, with hundreds of thousands of users engaging with various individual protocols. MV Global believes this is just the beginning of a massive growth wave, not only for current Web3 users but also for those transitioning from Web 2.
DePINs are blockchain protocols designed to decentralize real-world infrastructure and systems, including communications networks, data warehouses, and energy markets. The ecosystem currently includes over 1,000 projects and boasts a market capitalization exceeding $50 billion. By utilizing token incentives and onchain governance, DePINs are addressing longstanding challenges, such as the cold start problem for resource-intensive networks, and significantly reducing infrastructure costs.
MV Global emphasized that DePIN projects demonstrate the practical applications of crypto in solving real-world problems. Connectivity protocols like Helium, which focuses on mobile networks, are replacing costly legacy infrastructure through crowdsourced capital expenditures. Emerging projects to watch include Destra.network, Chirp, and Andrena.
Sensor networks, such as Dimo, Hivemapper, and Geodnet, operate devices in physical spaces to capture valuable data. Emerging DePIN use cases include decentralized energy storage solutions and marketplaces, such as Daylight, EC3, and Entheos. Additionally, DePIN-specific blockchains like Peaq and IoTeX are being developed to meet the unique needs of DePIN projects.
The report also notes that the market for decentralized data storage and compute protocols, driven by demand from artificial intelligence (AI) applications, is projected to reach $128 billion by 2028. Incumbent players in this space include Filecoin and Arweave. The growth in connectivity, sensors, and emerging primitives like energy networks underscores the tangible impact DePINs can have on real-world infrastructure.
