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The decentralized physical infrastructure network (DePIN) sector has experienced significant growth. As of 2024, the sector comprises approximately 1,500 projects with a combined market capitalization exceeding $50 billion.
According to a report by investment firm MV Global, the DePIN sector is developing rapidly and holds the potential to become a new catalyst for growth within the cryptocurrency industry by increasing the number of Web3 users. The report highlights that there are currently around 1,500 distinct DePIN projects.
MV Global analysts note that the total capitalization of DePIN protocols has crossed the $50 billion mark. The majority of these projects focus on decentralizing real-world infrastructure, including communication networks, data centers, and energy markets. In 2023, more than 600,000 new nodes were added, largely driven by the integration of mobile devices. Analysts predict the launch of numerous new DePIN protocols over the next six to 12 months.
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MV Global analysts identify the following key growth drivers for the DePIN sector:
- Lower infrastructure costs;
- Resolution of the “cold start” problem for resource-intensive networks;
- Decentralization of physical and digital resources;
- Reduced infrastructure deployment costs compared to centralized solutions;
- Scalability and rapid adaptability to local needs due to decentralized structures;
- Reduced risks associated with centralized management;
- Growing demand for computing and storage;
- Support for local networks and the generation of unique datasets;
- Potential for integration with traditional systems.
The report also states that DePIN technologies encompass a variety of use cases for reshaping physical infrastructure, directly impacting the growing demand for decentralized storage and computing solutions. According to the report, the cloud storage market could reach $128 billion by 2028.
Telecom giants such as World Mobile and Telefónica are already leveraging DePIN technologies.
