Solana and Base are leading the DePIN chain wars amid the interoperability push

Decentralized Physical Infrastructure Network (DePIN) projects have gained momentum in the past year. In 2024, while crypto markets doubled, DePIN surpassed this growth, which can be attributed to artificial intelligence (AI) gaining global prominence.

The new data reveals that this nascent sector currently occupies less than 0.1% of its billion-plus dollar addressable market.

DePIN is the “frontier”

As decentralized networks overtake centralized corporations with faster and more reliable offerings, DePIN is expected to grow 100-1000 times over the next decade, according to Messari’s latest report.

Interestingly, the “chain wars” have intensified, with Solana and Base gaining market share. Interoperability solutions like Wormhole and LayerZero have pushed DePINs to adopt multi-chain strategies, expanding their user base but fragmenting liquidity. Messari stated that Solana’s “latency-focused” culture appears to have accumulated innovators in the infra layer, while Coinbase’s branding and retail distribution have attracted consumer-focused founders to Base.

It found that early-stage VCs invested aggressively in DePIN, driven by strong listing conditions. In the private markets, funding at the pre-seed and seed levels outperformed Series A rounds. Meanwhile, in the liquid markets, projects with lower quoted FDVs showed the highest returns.

Of the top 22 DePIN tokens, only four depreciated after their TGE, with Virtuals Protocol leading the pack with over 30,000% growth. NEURAL and NodeAI also showed remarkable performance, each growing by more than 2,000%.

The late-stage capital went to a few high-profile projects and was backed by top-tier VCs. These projects launched tokens at 50-100 times book value, often achieving multi-million dollar FDV. Community efforts also proved crucial, with $230 million raised by 2024 through node sales, crowdfunding, and liquidity pools owned by the protocol.

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

Is DePIN ready for growth in 2025?

Crypto hedge fund and venture capital firm Pantera Capital recently predicted that 2025 would be a crucial year for DePIN, with regulatory clarity potentially removing key barriers for investors and innovators.

Grayscale Research also echoed a similar sentiment and stated that DePIN has become a key focus within its top 20 crypto investment list.

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