This year the cryptocurrency market has seen a revival of legacy tokens as utility-based narratives gain renewed momentum. Despite this momentum, DePIN struggled to keep up, and fell out of the spotlight.
BeInCrypto spoke with several experts to understand why one of the most profitable sectors in the cryptocurrency space has been unable to capture sustained market interest, and what might happen next.
Deepen understand
DePIN, short for Decentralized Physical Infrastructure Networks, Refers to blockchain-based Systems that coordinate, finance, and operate real-world infrastructure through decentralized incentives.
Instead of relying on traditional companies to build networks like wireless coverage, storage, sensors, or power grids, DePIN distributes the work across individuals and small operators who contribute hardware and earn tokens in return.
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This model reduces upfront costs, expands global reach, and opens up infrastructure that was previously difficult to scale. By aligning incentives with actual demand, DePIN aims to build more resilient and efficient systems.
Why is DePIN still struggling in 2025?
However, the space continued to face challenges. According to Artemis data, it ranks among the 10 worst-performing sectors this year. The DePIN market declined by More than 74% in 2025
But why does this happen? Sami Kassab, managing partner at Unsupervised Capital, told BeInCrypto that the vulnerability crossed The altcoin market is normal It affected DePIN as well.
According to him, macro conditions explain part of the sector’s slowdown, but not all of it. The deeper problem, he said, is that there has been “no DePIN hack yet.”
“The other side of the coin is that DePINs are building real infrastructure and real companies. This takes a long time, which the cryptocurrency market is not adapted to. Investors are accustomed to fast-moving narratives and overnight successes,” Kassab added.
Liu Fan, co-founder of Cysic, revealed that the main obstacle facing DePIN is the mismatch between infrastructure construction cycles and the short attention span of the cryptocurrency market. while Non-fungible tokens (NFTs)meme coins, and grand coins Altcoins thrive on culture Identity and Hype,DePIN acts as an infrastructure layer that most users struggle to connect with emotionally.
Its value quietly grows through deployments of hardware and real computing power – progress that is not immediately visible or profitable. The fan pointed out that,
“Most investors still view the value of tokens as the only measure of success, which does not apply to infrastructure systems. DePIN networks create tangible value through services such as computing power and data delivery. Their performance is measured by usage, speed and reliability, rather than short-term fluctuations. Since this model does not reflect traditional crypto dynamics, it remains outside the comfort zone of most market participants.”
Maria Carolla, CEO of StealthEx, shared a similar view. She stated that most investors remain attracted to assets they can trade quickly rather than sectors that require deeper understanding.
“Within crypto cycles, speculation will always dominate, and DePIN’s convoluted approach doesn’t help its position either. Most investors don’t fully understand how token incentives drive data collection, storage, or communication, and how that translates into revenue. If we’re talking about traditional markets, the infrastructure side is always the least glamorous, but still the most important. DePIN is the crypto version of that,” she told BeInCrypto.
However, Vinayak Kurup, investment and research partner at Escape Velocity Crypto (EV3), pointed out that DePIN’s slowdown isn’t just about market perception — it’s about the difficulty of building real-world networks that require hardware, manufacturing, and physical deployment.
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“They are often compared directly to existing large-scale network providers; the challenge for DePIN operators is to provide a reliable and relatively simple user experience for a fraction of the capital while operating in sectors where user stickiness is high. Combined, these factors weaken DePIN’s mindshare,” Kurup explained.
High usage, low prices: Experts explain the growing gap in DePIN basics
Despite the sector’s poor performance, usage metrics paint a different picture. Fees rose to a record high in October even with… The broader market continued to decline.
This suggests a growing disconnect between falling token prices and rising usage in the real world. According to Kassab.
“The fees are trending higher, but they are still small compared to the value of emissions expended since their inception or the revenues of existing companies that these networks aim to disrupt.”
This disconnect is typical in emerging infrastructure sectors, where fundamentals can strengthen long before prices, Carolla said. She explained that sentiment often fluctuates independently of utility: investors may shy away from risk during unstable markets, even as real activity continues to grow.
“Rising fees and network activity during a market decline instead shows that real users continue to find value in these services, whether for storage or compute. In the long term, these metrics will be more important than short-term token performance, once revenue eventually flows with usage, just as was the case in the early days of the Internet.”
Fan also stressed that speculation and actual use were clearly separated. He said price action largely reflects investor sentiment — what he called “Wall Street sentiment” — while fee growth captures real demand for networks. When fees increase in a bearish environment, it indicates that DePIN’s underlying services are gaining momentum regardless of market cycles.
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“Such divergence is common in early infrastructure cycles. Networks are being used more, but the market has not yet priced in this because investors are still treating DePIN tokens as speculative assets,” the BeInCrypto executive revealed.
Could DePIN be the next sector to take off after privacy coins?
It’s clear that DePIN is seeing real market demand, which raises an important question: Could the sector finally see a similar breakout? One of the privacy coins seen this year?
Carolla thinks the answer leans toward yes. She noted that cryptocurrency cycles tend to shift from narrative-based speculation to phases where utility and real adoption take center stage.
According to her, if privacy coins reflect a trend toward digital sovereignty this year, DePIN could be positioned for a similar rally — one that is anchored by measurable production. She commented, saying:
“DePIN could have measurable productivity by next year. Whether for physical infrastructure or decentralized data, network creators are laying the foundation, anticipating and preparing for when the market begins to value cash flow and reliance on memes. When this shift occurs, DePIN will be the sector that can show measurable real-world traction.”
The fan echoed this look. He suggested that once the market shifts back toward sectors with clear benefit, DePIN emerges as a natural beneficiary. He pointed to concrete indicators that the chain is already heading higher.
“Network fees are rising, node participation is expanding, and operational performance continues to strengthen. If these data points become standard benchmarks, DePIN may be recognized as the quiet builder of commercial infrastructure,” he predicted.
Kurup offered a broader perspective. While acknowledging uncertainty about broader market conditions, he said investor preferences are gradually shifting towards projects with recurring cash flows and strong fundamentals – an environment that plays directly to DePIN’s strengths.
“But it’s also likely to be a tailwind from other shifts in the market. 2026 will be the year of DePIN’s comeback,” he announced.
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Why businesses can launch the next phase of DePIN
Experts also pointed to several catalysts that could lead to a major shift in the sector, with both Carolla and Phan agreeing that corporate adoption could be the key driver.
“Enterprise adoption is the most powerful driver. Regulation and investor sentiment will follow proof of adoption. Once companies start integrating decentralized infrastructure into existing systems, confidence in the model will soar. DePIN’s credibility depends on measurable performance, and enterprise participation provides just that,” explained the Cysic co-founder.
Kurup stressed that multiple factors are likely to come together to bring about a transformation. Investor psychology is still critical, he said, but increased visibility and mainstream presence can accelerate this shift.
“Now, I see Helium advertising its free phone plan in the New York subway — compared to its Web2 counterparts, only recently have DePINs been capitalized well enough to enter the mainstream,” Kurup shared.
What role will DePIN play in the future of cryptocurrencies?
As optimism about the sector’s trajectory remains strong, it’s still worth asking where DePIN truly fits into the broader cryptocurrency ecosystem. Will DePIN remain a niche bet, or is it about to become crypto’s bridge to the real economy once the markets catch up?
The StealthEx CEO said that DePIN actually acts as a bridge — and the market has not fully caught on to it yet. As blockchain shifts from abstract financial experiments to practical, real-world use cases, she believes DePIN will anchor many of these shifts.
“Whether it’s powering smart cities, distributed AI computing, or IoT networks, these systems make cryptocurrencies tangible. So, even though it may seem like a limited field today, it’s actually fundamental. And when people finally start interacting with decentralized infrastructures without realizing they’re cryptocurrencies, that’s when DePIN will truly win,” Carolla relayed to BeInCrypto.
Fan pointed to developments in 2025, especially the emergence of real-world asset tokenization (RWA) and increasing institutional adoption, as signs that the real economy is already seeing value in decentralized systems. In his view, DePIN is well-positioned to become the infrastructure layer that connects DeFi to enterprise use cases.
“I believe DePIN will be one of TradFi’s cryptocurrency bridges as the sector matures, and will serve as the infrastructure layer that proves DeFi with real-world capability. As institutions look for verifiable and cost-effective infrastructure to support secure settlement, DePIN will move from a niche experience to the foundational layer of digital finance.”
Whether the market realizes it now or years from now, experts agree on one point: DePIN’s long-term value lies not in speculation, but in becoming the invisible infrastructure that enhances cryptocurrencies’ real-world influence.
