tl;dr
Franklin Templeton's report, "DePIN: Traction in Supply & Early Signs of Increasing Demand," explores the rise of Decentralized Physical Infrastructure Network (DePin) projects. These projects outsource operational costs to third-party participants who receive compensation in the project's tokens, l...
Franklin Templeton's report, "DePIN: Traction in Supply & Early Signs of Increasing Demand," explores the rise of Decentralized Physical Infrastructure Network (DePin) projects. These projects outsource operational costs to third-party participants who receive compensation in the project's tokens, leading to potential disruption in sectors such as computing, energy, telecommunications, and mapping. The report highlights Hivemapper as the world's first blockchain-based decentralized mapping network and Helium as the largest decentralized wireless network. Despite the success of these projects, the demand for decentralized services has not matched the supply, which could impact their long-term viability. The DePin ecosystem currently comprises 1,215 active projects with a total market capitalization of $47 billion, with emerging ventures like Aethir and io.net seeing their tokens listed on multiple centralized exchanges, enhancing liquidity and encouraging broader participation and investment.
Sponsored DePin projects uniquely reduce overhead by outsourcing operational costs to third-party participants, who receive compensation in the project’s tokens. This method, known as token incentives, paves the way for a lean operation that could revolutionize sectors like computing, energy, telecommunications, and mapping. One standout example is Hivemapper, highlighted by Franklin Templeton as the world’s first blockchain-based decentralized mapping network. Drivers install a dashcam, contribute to road mapping, and earn Hivemapper (HONEY) tokens. Impressively, Hivemapper has charted 21% of global roads in 31 months, growing its contributor base to over 60,000. Another significant player, Helium (HNT), has developed the largest decentralized wireless network. By partnering with T-Mobile to extend its reach, Helium expanded its 5G network to about 13,000 hotspots. This model highlights the potential market disruption and cost-efficiency of DePin projects. Despite these successes, the demand for such decentralized services has not escalated as fast as the supply. This imbalance could impact the long-term viability and attractiveness of DePin projects unless stronger consumer interest is cultivated.
According to the latest data from the DePin Ninja dashboard, the DePin ecosystem is thriving, with 1,215 active projects and a total market capitalization of $47 billion. Moreover, Aethir and io.net, two emerging DePin ventures, saw their respective tokens, ATH and IO, listed on multiple centralized exchanges this week. These listings enhance liquidity and validate the operational models of these projects, encouraging broader participation and investment.