Solana and Base Lead the DePIN Chain Wars Amid Interoperability Push
Messari expects DePIN to grow 100-1000x over the next decade as decentralized networks outperform slower, centralized equivalents.
Decentralized Physical Infrastructure Networks (DePIN) projects have acquired significant traction during the last year. While cryptocurrency markets doubled in 2024, DePIN exceeded the expansion, which can be related to the rise of artificial intelligence (AI) to global popularity.
According to new research, this young sector presently accounts for less than 0.1% of the $1 trillion+ addressable market.
DePIN Is The “Frontier”
According to Messari’s most recent estimate, DePIN is expected to increase 100-1000 times over the next decade as decentralized networks outperform centralized enterprises with faster and more dependable products.
Interestingly, the “chain wars” have escalated, with Solana and Base gaining market share. Interoperability solutions such as Wormhole and LayerZero have pushed DePINs to explore multi-chain methods, expanding their user base but fragmenting liquidity. Messari added that Solana’s “latency-focused” culture appears to have gathered innovators at the infra layer, whereas Coinbase’s brand and retail distribution have drawn consumer-focused startups to Base.
Early-stage VCs were found to be aggressively investing in DePIN, aided by favorable listing conditions. In the private sector, pre-seed and seed-level fundraising outnumbered Series A rounds. Meanwhile, projects with lower listing FDVs in liquid marketplaces produced the largest returns.
Only four of the top 22 DePIN tokens depreciated after their TGE, with Virtuals Protocol leading the pack with ma ore than 30,000% increase. NEURAL and NodeAI also performed admirably, with each growing by more than 2,000%.
Late-stage money was channeled towards a small number of exceptional ideas and backed by top-tier VCs. These projects issued tokens at 50-100 times book value, frequently generating multibillion-dollar FDVs. Community efforts also paid off, with $230 million earned in 2024 through node sales, crowdfunding, and protocol-owned liquidity pools.
Furthermore, DePIN is becoming a tool for local governments to address infrastructure issues. According to the research, leaders are using it to solve crucial issues, such as boosting AI sovereignty in Tanzania and closing the digital divide in Mexico, to connect with voters and win elections.
DePIN Poised for Growth in 2025?
Pantera Capital, a cryptocurrency hedge fund and startup capital business, has projected that 2025 would be a critical year for DePIN, with regulatory clarity potentially removing important barriers for investors and entrepreneurs.
Greyscale Research shared a similar perspective, stating that DePIN has emerged as a prominent focus on its Top 20 cryptocurrency investment list.
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