DePINs Positioned as the Next Major Use Case in Web3 — MV Global

  • MV Global report identifies DePINs as a transformative use case for Web3.
  • Real-world adoption is growing, with over 1,000 projects and a $50 billion market cap.
  • AI demand could drive a decentralized data storage market to $128 billion by 2028.

Decentralized physical infrastructure networks (DePINs) are set to become a key application in the Web3 space, potentially attracting a large influx of new users to the crypto ecosystem, according to a report by Web3 investment firm MV Global.

DePINs are blockchain-based protocols designed to decentralize real-world infrastructure and systems, including communication networks, data storage, and energy markets.

MV Global estimates that the DePIN ecosystem comprises over 1,000 projects and is valued at more than $50 billion. The firm believes that DePIN technology has the potential to tackle critical infrastructure challenges, such as high costs and the “cold start problem” in resource-intensive networks.

Growing Adoption in Web3

The report notes that the adoption of DePINs in the real world is accelerating, with hundreds of thousands of users engaging with various protocols. This growth is not just limited to existing Web3 enthusiasts but is also attracting new users from Web 2.

DePINs are designed to reduce costs and enhance efficiency, leveraging token incentives and on-chain governance to offer a viable solution for modern infrastructure needs.

“DePIN projects clearly illustrate the strengths of crypto and its potential to solve real-world problems,” the report states. MV Global emphasizes that this could be the beginning of a significant wave of growth in the crypto space.

Emerging Projects and Market Impact

The report highlights several emerging DePIN projects that have the potential to disrupt traditional infrastructure. Connectivity protocols like Helium, which focuses on mobile networks, are replacing costly legacy systems through crowdsourced capital.

Other notable projects include Destra.network, Chirp, and Andrena. In the sensor network sector, projects such as Dimo, Hivemapper, and Geodnet are deploying devices to gather valuable data from physical environments.

Additionally, specialized DePIN blockchains like Peaq and IoTeX are being developed to meet the unique needs of these decentralized networks. These innovations demonstrate the practical applications of DePINs across various sectors, including energy markets.

New use cases are also emerging in decentralized energy storage solutions and marketplaces, with projects such as Daylight, EC3, and Entheos leading the charge.

Future Prospects Driven by AI Demand

The demand for decentralized data storage and computing protocols, especially from artificial intelligence (AI) applications, is projected to drive the market to $128 billion by 2028. 

Established players like Filecoin and Arweave are well-positioned to benefit from this growth. The report indicates that the expanding markets for connectivity, sensors, and energy networks underscore the significant impact DePINs can have on real-world infrastructure.

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Source: https://coinedition.com/ais-impact-on-depins-report-predicts-128b-market-by-2028/