According to CoinMarketCap, the decentralized physical infrastructure network sector, known as DePIN, has a market cap of over $27 billion.
Rushi Manche, co-founder of Movement Labs, recently shared insights with Cointelegraph. He pointed out that DePIN faces a challenge: it lacks a clear story for mass adoption. With so many different uses, many of which are quite technical, it can be tough to explain these projects to everyday people.
But there’s a silver lining. Manche remains hopeful about the future. He mentioned that the pro-crypto stance of former President Donald Trump could be a game changer. “If tokens start getting issued in the U.S., that would be huge,” he said.
As we look ahead to 2025, DePIN is catching the eye of venture capitalists. They’re eager to see what happens as regulatory clarity around digital assets is expected to improve in the U.S.
So, what exactly is DePIN? It’s one of the most diverse areas in crypto. Think about everything from telecom networks to automotive data collection and cloud storage. For example, Helium is a decentralized network aiming to shake up traditional communication services. It wants to fill in coverage gaps where service is lacking.
In July 2024, Helium Mobile announced some exciting updates. They expanded their coverage, improved compatibility with third-party hardware, and started pilot programs for telecom interoperability.
Decentralized networks are also set to disrupt centralized cloud storage. Take Functionland’s FxBlox device and the Fula Network. They offer users a decentralized way to store data, providing a solid alternative to the cloud services we often rely on.
Interestingly, DePIN has even been proposed as a means to decentralize law enforcement. Imagine communities having more control over their policing. A July 2024 article by a writer named Luffistotle suggested that radar arrays and surveillance systems could be owned by the community through tokenization.
Additionally, community patrol decentralized autonomous organizations (DAOs) could give locals direct oversight of their police forces.