#DePin As a long-standing track in the crypto field, it has regained the market's high attention in 2023. In the 2024 outlook reports of Messari, Coinbase, Spartan and other institutions, they all regard DePin as one of the most important narratives in the 2024 crypto market, and are unanimously optimistic about its performance in the next bull market.
The current valuation of the entire DePin track is around US$9 billion. According to Messari estimates, it is expected to grow to US$3.5 trillion in 2028.
👀👇 Let’s briefly describe the industry.
DePin, Decentralized Physical lnfrastructure Networks, is a decentralized network hardware infrastructure concept proposed by Messari. It aims to bring real-world storage, computing, rendering and other infrastructure to the blockchain through crypto-economic incentives.
The DePin industry chain can be divided into three parts:
Upstream: The original IDM manufacturer of the hardware.
Whether Web2 or Web3, they are inseparable from the design, processing and packaging of hardware raw materials. Representative companies include TSMC, Media Tek, ASML, etc.
Midstream: mature product provider.
They have accumulated certain experience in Web2 and are even industry leaders. Their products and services are very mature and advanced. Representative companies include Google, Amazon, Apple, Nvidia, etc.
Downstream: Integration platform for Web3 terminals.
These projects provide solutions for#Web3and even Web2 users by setting up different mechanisms and economic models.
Sub-tracks can be divided into storage (such as @Filecoin), network (such as @helium), rendering (such as @rendernetwork), entertainment (such as @Theta_Network), etc.
In the downstream, that is, the on-chain terminal platform, in addition to simply dividing DePin projects by function, they can also be divided according to the two major types defined by Messari:
Physical resource network.
Such protocols encourage users to deploy location-based hardware devices to access the network to provide data information related to geographic location or other factors, and provide users with real-world goods or services.
It can be subdivided into: environment, energy, geographic location, smart city, mobile tool, smart home, WIFI, 5G and other protocols.
Digital Resource Network.
Such protocols encourage users to use or allocate their idle, spare digital computing power or capacity, etc. These decentralized digital resources are different from physical resource networks and provide fungible services or goods.
It can be subdivided into: computing power, bandwidth, storage, artificial intelligence, indexer and other protocols.
* A more complete DePin track map:
Although the DePin track has a promising future, at this stage, the entire track is still dominated by narrative and emotional speculation rather than fundamentals, including several large-cap projects that have certain bubbles, so investors should still remain cautious.
The mining attribute of the DePin project is relatively strong, and participants will have a payback period. Families also need to realize that such projects have different logics in different market stages to avoid unnecessary risks.
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