The Decentralized Physical Infrastructure Network (DPIN) Driving Growth in the Technology Industry
The Decentralized Physical Infrastructure Network (DPIN) has experienced remarkable growth, with a 400% increase in market value reaching $20 billion last year. This surge in value indicates a growing interest and investment in the industry.
Messari Introduces Four Newly Defined Sub-Industries
Within the Defin ecosystem, there are two main categories: the physical resource network (PRN) and the digital resource network (DRN). Currently, DRN dominates the market, with 7 of the top 8 protocols contributing to a total market value of US$12.2 billion. Despite its smaller market cap, PRN has also garnered attention from investors, as seen in a recent $9 million financing round led by Andreessen Horowitz for the PRN project Daylight Energy.
Messari, a research firm, recently expanded the Defin industry map by introducing four new DePin subsectors:
- Decentralized gaming infrastructure (DeGin)
- AI data layer
- Robotics
- Manufacturing
This expansion highlights a diverse range of technology applications, from gaming and artificial intelligence to robotics and energy management.
Challenges in Revenue Generation
Despite the significant growth in market value, DePin continues to face substantial challenges in revenue generation. According to Messari, while valuations have risen sharply, revenue growth has not kept pace, with only four of the largest DePin protocols ranking among the top eight in terms of revenue. This disparity underscores the market’s current demand constraints.
Stanley Wu, a senior investment manager at Hashiki Capital, emphasized the importance of investing in Defin projects targeting profitable markets. Strong cash flow and earnings are crucial to attracting investor interest.
Furthermore, Ethereum reported $36 million in sales last year, driven by a consistent 10% monthly growth. This growth was fueled by the high demand for platform-as-a-service (PaaS) products, essential for the development of artificial intelligence, cloud gaming, and edge computing.
Future Outlook for DPIN’s Impact on Technology Development
Despite the existing challenges, the potential impact of DPIN on technology development is promising. Ethyr co-founder Daniel Wang expressed optimism about the future, stating that Defin has the potential to revolutionize the technology landscape in developing countries over the next five to ten years. By reducing infrastructure costs and improving access to services such as internet connectivity and digital platforms, DPIN could bring about significant positive changes.
