We have witnessed the DeFi Summer, the NFT craze, and the metaverse craze, so will the next big wave turn to DePIN? Between 2020 and 2021, the market value of DeFi soared nearly 100 times, jumping from US$1.75 billion to US$172.2 billion. If the DeFi market value grows 10 times in the current bull market, and DePIN reaches 50% of the DeFi market value, then the total market value of DePIN is expected to exceed US$500 billion, and there is still at least 20 times of growth space. Messari estimates that the market value of DePIN will reach US$3.5 trillion by 2028, indicating a potential 120-fold growth space for DePIN.
The most essential core of DePIN is resource integration, that is, using tokens to incentivize users to share resources so that resources can flow efficiently to the hands of the demanders. Therefore, the characteristics of DePIN are also clear at a glance:
Crowdsourced Hardware — More Cost-Effective
Collective Ownership — Aligns interests with and rewards users
Democratized access — an open and unrestricted internet
Decentralized — Permissionless and censorship-resistant
DePIN and traditional infrastructure are just like DeFi and CeFi. It weakens the role of middlemen to some extent, making resources flow more smoothly between suppliers and demanders.
The number of DePIN projects is increasing, especially the recent hot market situation, which shows the market's recognition of this track. However, the DePIN track is relatively new, and the absolute value of growth is not very high, which makes it relatively niche in the entire web3 market. It needs more attention and resource inclination, including more investors starting to pay attention to this direction, so that more community developers are willing to join this track and develop in-depth applications together. In 2024, with the rotation of a new round of market cycles, DePIN will inevitably participate in it, but whether it will become a big year for DePIN is more unknown. Once an excellent or even revolutionary financial model appears in the DePIN field, all of this will no longer be a problem, and the DePIN flywheel will spontaneously drive the solution of all technical and cost problems. Why do you say that? Because of the use of tokens, DePIN projects can benefit from a positive flywheel effect, that is, increased usage (demand) increases the price of tokens through burning or repurchase, and then provides contributors with additional incentives to continue to build the network because the dollar value of the tokens they receive increases. As the network develops, investors are becoming more and more interested and begin to support the project with funds. If a project is open source or makes contributor/user data available to the public, developers can build dapps on top of the data, creating additional value in the ecosystem and thus attracting more users and contributors.
In 2024, the combination of AI and blockchain is a hot topic in the industry, and developers are actively exploring the possibility of this integration. Currently, blockchain technology is seen as an ideal choice to solve many problems such as "inability to properly utilize AI services and computing resources", and many projects have already explored their own paths in this field.
As a leading enterprise in the DePIN-AI track, Solong's technical advantages and market potential in computing network construction and user services will bring considerable investment returns and provide important support for its future strategic development. In fact, Solong is still in the early stages of the project. At this stage, investors can acquire equity or tokens of the project at a lower cost and obtain considerable investment returns when the project grows in the future. Moreover, with the development, the track is expected to become a hot track like the AI track. As an early project in this field, Solong is expected to become a well-known project in the future hot track. At the same time, Solong is still in the early stages of the project, and compared with the many high-market-value projects in the current very hot DePIN track and AI track, Solong's circulating market value is still dozens of times different from them, so the earlier you participate in Solong's ecology, the more you can enjoy the investment returns brought by the growth of the project.
