NAIROBI (CoinChapter.com)—DePin (Decentralized Physical Infrastructure Networks) tokens have emerged as one of the fastest-growing sectors in crypto. With their focus on decentralized services like storage, rendering, and streaming, DePin tokens have gained attention. But with October 2024 around the corner, investors may wonder if now is the right time to buy.
Bitcoin and DePin Tokens Shine in September’s Market Rally
This year, September bucked its trend of poor performance, closing with Bitcoin recording some of its strongest gains. Despite a slight dip as the month wound down, Bitcoin managed to achieve an impressive approximate gain of 9%. This is particularly notable compared to the average 3.6% decline Bitcoin has seen over the past decade during the same month, according to data from CoinGlass.
Bitcoin (BTC) monthly returns. Source: CoinGlass
In the DePin sector, Render (RNDR) surged 31.0% over the last 30 days. Priced at $6.62, Render benefits from robust demand for decentralized GPU rendering services, with a market capitalization of approximately $2.6 billion.
Top 5 Depin tokens by market cap. Source: CoinMarketCap
Over the past month, Filecoin (FIL) has seen its value increase by 9.6%, reaching a market cap of over $2.3 billion, despite experiencing a slight 3.8% dip in the last 24 hours. Similarly, Theta Network (THETA) recorded an 18.5% surge this month, pushing its market cap to approximately $1.4 billion.
Additionally, Arweave (AR) and The Graph (GRT) have also shown impressive performances. Arweave recorded a 7.0% increase, and The Graph experienced a substantial 24.4% surge.
October’s Bullish History and Potential Impact
As we transition into October, often referred to as “Uptober” for its historically strong market showing, expectations are running high. CoinGlass data hints at an average October upside of nearly 23%, suggesting that Bitcoin could potentially reach new all-time highs from its current levels.
Bitcoin’s Strong Finish Sets Stage for Q4 Surge. Source: Michaël van de Poppe
Echoing this sentiment, crypto analyst Michaël van de Poppe also predicts a bullish quarter ahead. He suggests that altcoins could see substantial gains, ranging from 3-5x, while Bitcoin may break past its all-time high, paralleling trends seen with gold.
Interestingly, since 2013, October has only seen two losing months, with losses capped at just under 13%, adding to the positive outlook for both Bitcoin and DePin tokens.
DePin Token Growth Faces Verification Challenges
As DePin tokens grow, they encounter challenges, particularly in verifying services. Haseeb Qureshi from Dragonfly Capital noted that projects leveraging physical resources (PRNs) face scaling difficulties compared to those focusing on digital resources (DRNs).
Less Physical, More Scale: Haseeb on DePIN – Source: Messari
However, not all projects face the same obstacles. DAWN, a decentralized broadband network, uses verification systems like Proof-of-Backhaul to maintain decentralization despite using physical resources. Other networks, such as Filecoin, rely on computational methods like zero-knowledge proofs to ensure trustless verification.
Notably, even with these obstacles, the DePin sector has grown 450% in the past year, showing strong investor interest. In fact, given October’s history of positive crypto trends, DePin tokens could be worth considering.DePin tokens show promise, especially as the market tends to perform well in Oct.Above all, for investors, October 2024 presents an opportunity to capitalize on the seasonal uptick in crypto markets.
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