DePIN projects aim for a novel blockchain use case, creating decentralized physical infrastructure. The abbreviation represents the merging of physical and digital space through tokens and electronic systems.
This crypto trend combines older platforms rebranding and new projects using existing technology. There are now enough projects carrying the DePIN tag to establish their own category.
Collectively, DePIN tokens have a market cap of $33B, similar to Web3 and game projects during boom times. But at this valuation, DePIN seems to be a growing category, with some upside for individual tokens and the market as a whole.
What is Included Among DePIN Projects
DePIN brings together several categories that have already experienced bullish booms. The sector as a whole was consolidated in late 2023.
In 2024, DePIN includes decentralized storage, distributed computing, networking, AI, services and sensors for the Internet of Things (IoT). Additionally, DePIN is closely related to oracle services and Real World Asset (RWA) tokenization.
DePIN has been used to brand projects such as Render, which utilizes blockchain technology to build art-based communities.
What is common in DePIN is a drive to collect resources from users in return for tokens or points. Many of these projects aim to disrupt centralized industries such as cloud storage and content platforms.
The value of the infrastructure will also be the underlying value of the project. DePIN is also a way to create elements from a real economy, solving the value problem of tokenization and token valuations.
Which are the Hottest DePIN Projects in May
Most DePIN projects are in the green recently. But two of them are standing out, after defying the recent market corrections. Render and AIOZ Network are also busy building up their social media profile, while promoting their approach to building infrastructure.
Render (RNDR) is an Ethereum-based token, taking the easy launch approach while building its product. Render aims to offer distributed GPU rendering services, recorded on the blockchain. Additionally, the Render project is promoting itself through engaging events with digital artists.
Render participated in a digital art tournament over the weekend to promote its Octane product for better rendering.
The RNDR market price responded favorably to the exposure, rising to $10.06. RNDR is now within a small distance of repeating its all-time high at $12.34.
The other prominent project in the past week is AIOZ Network (AIOZ). The project reawakened in the first months of 2024, moving to a higher price tier. AIOZ rallied to $0.80 in the span of a few days, on trading volumes above $50M. This activity is close to all-time high for AIOZ, and is tied to the project’s social media performance.
AIOZ remains riskier compared to Render, due to its relatively low market cap. The project aims to become Web3 infrastructure by combining streaming, AI, and distributed storage.
AIOZ may remain a hot token in the short term and bounce from its relatively low price. The main reason is the recent BitHumb listing. In the coming days, the exchange will also organize a trading event with incentives, further lifting AIOZ volumes.
AIOZ is also traded as an Ethereum-based token, the only version which will be accepted for trading on exchanges.
DePIN Brings Renewed Attention to Older Projects
DePIN is also hosting a long list of relatively older token projects, which gained prominence during the 2018 ICO boom. The list includes successful storage projects like Filecoin (FIL), which also added a DeFi component. Siacoin (SIA) is also an older storage coin that is now considered a DePIN asset.
Helium (HNT), a decentralized WiFi project, is also included in the rebranding list. Even platforms like Lisk (LSK) are now adding DePIN to their description.
But the list of hot projects does not just hinge on the potential for token price action, or the size of the network. DePIN platforms compete with users by promising rewards and incentives. With those tools, DePIN is also a way to mine rewards and hope to turn the rewards into real value.
DePIN has a dual impact on the crypto space, benefiting both established and emerging projects.
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