Solana and Base Lead the DePIN Chain Wars Amid Interoperability Push

Solana and Base Lead the DePIN Chain Wars Amid Interoperability Push

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Decentralized Physical Infrastructure Networking (DePIN) projects have gained massive traction in the past year. In 2024, while cryptocurrency markets doubled, DePIN surpassed this growth, which can be attributed to artificial intelligence (AI) achieving global popularity.

New data reveals that this emerging sector currently holds less than 0.1% of the addressable market worth over $1 trillion.

DePIN is the “boundary”

Since decentralized networks outperform centralized companies with faster and more reliable offerings, Deepin It is expected to grow 100-1,000 times over the next decade, according to Masari’s latest forecasts. a report.

Interestingly, the “chain wars” intensified, with Solana and Pace gaining market share. Interoperability solutions such as Wormhole and LayerZero have pushed DePIN networks to adopt multi-chain strategies, expanding their user base but fragmenting liquidity. Massari said that Solana’s “latency-focused” culture appears to have brought together innovators at Base, while the Coinbase brand and retail distribution have attracted consumer-focused founders to Base.

It turns out that early-stage venture capital funds have invested heavily in DePIN, supported by strong listing conditions. In private markets, funding at the pre-seed and seed funding levels exceeded Series A rounds. Meanwhile, in liquid markets, projects with lower listing FDVs showed the highest returns.

Of DePIN’s 22 tokens, only four dropped in value after their TGE event, with Virtuals Protocol leading the pack with over 30,000% growth. NEURAL and NodeAI also showed great performance as they each grew by more than 2000%.

Late-stage capital has been directed towards a few blue-chip projects and has been backed by top-tier venture capital firms. These projects launched tokens with a book value between 50 and 100 times, often achieving FDVs in the billions of dollars. Community efforts have also proven important with $230 million raised in 2024 through contract sales, crowdfunding, and protocol-owned liquidity pools.

In addition, DePIN has become a tool for local governments to solve infrastructure problems. In fact, the report said leaders are using it to address key concerns, such as promoting AI sovereignty in Tanzania and bridging the digital divide in Mexico, in order to resonate with voters and secure electoral victories.

DePIN ready for growth in 2025?

Cryptocurrency hedge fund and venture capital firm Pantera Capital recently anticipation 2025 will be a critical year for DePIN, as regulatory clarity will likely remove major barriers for investors and innovators.

Grayscale research too Repeat Similar sentiments stated that DePIN emerged as a major focus among the top 20 crypto investments list.

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