DePINs: Web3’s “Next Big Use Case” Will Onboard Millions of New Crypto Users

Decentralized physical infrastructure networks (DePINs) will be Web3’s “next big use case,” with the potential to onboard “a significant number of

A recent report from MV Global, a Web3 investing firm, has highlighted decentralized physical infrastructure networks (DePINs) as Web3’s “next big use case.” According to the report, DePINs have the potential to bring a significant number of new users into the crypto space.

The report notes that real-world adoption of crypto has accelerated in recent times, with hundreds of thousands of users now engaging with various individual protocols. MV Global believes that this is just the beginning of a massive wave of growth, not only for current Web3 users but also for those converting from Web 2.

DePINs are essentially blockchain protocols that are designed to decentralize real-world infrastructure and systems, such as communications networks, data warehouses, energy markets, and more. According to MV Global, the DePIN ecosystem currently consists of over 1,000 projects and represents more than $50 billion in aggregate market capitalization.

The report highlights several key benefits offered by DePINs. By leveraging token incentives and onchain governance, DePINs are able to address longstanding challenges, such as the “cold start problem” for resource-intensive networks. Additionally, DePINs can significantly cut infrastructure costs, making them an attractive proposition for various industries.

“DePIN projects clearly show what crypto is really good for and can solve real-world problems,” the report notes.

A visual representation of the DePIN landscape, according to MV Global. Source: MV Global

Related: The road to mainstream for DePIN goes through this decentralized VPN

Among the specific DePIN use cases highlighted in the report are connectivity protocols, which are displacing legacy infrastructure by crowdsourcing capital expenditures. The report cites Helium, a well-known project in this space that focuses on mobile networks, as an example. Other emerging projects to watch in this category include Destra.network, Chirp, and Andrena.

Another use case involves sensor networks, which are used to operate devices in physical spaces and capture valuable data. Examples of decentralized sensor networks mentioned in the report include Dimo, Hivemapper, and Geodnet.

Furthermore, the report notes the emergence of DePIN-specific blockchains, such as Peaq and IoTeX, which are being created to cater to the specific needs of DePIN projects.

Finally, the report highlights the growing demand for decentralized data storage and compute protocols, which is being fueled by AI applications. According to the report, the market for these protocols is expected to reach $128 billion by 2028, showcasing the significant impact that DePINs are having on real-world infrastructure.

“The growth in connectivity, sensors, and emerging primitives like energy networks highlights the tangible impact DePINs can have on real-world infrastructure,” the report concludes.