In Q3 2024, when Borderless Capital, a leading name in web3 investments, announced a $100 million fund for DePINs, they were clear about one thing: DePIN sector will be the biggest driving force that will propel the entire Web3 industry to the next level.
Alvaro Garcia, a partner at the investment firm minced no words talking about their conviction in dipping themselves heavily into DePINs. “DePIN will become the global standard for deploying physical infrastructure, coordinating human resources, and generating billions in passive income while at the same time providing easy access and lower cost for the users.”
The Current and Growing Impact of DePIN Projects
DePIN projects have already reached a valuation exceeding $33 billion and continue to grow rapidly. What sets these initiatives apart is their ability to decentralize critical public infrastructure by leveraging blockchain technology. This innovative approach enables more transparent, efficient, and equitable deployment of essential services, revolutionizing how infrastructure is managed and consumed.
As cryptocurrency becomes increasingly accessible, the number of real-world use cases for blockchain technology is expanding. DePINs stand at the forefront of this evolution, offering unique models to decentralize critical infrastructure and fostering a tokenized economy. By addressing fundamental infrastructure challenges, DePINs are paving the way for a broader adoption of Web3 protocols.
Institutional Support for Disruptive Technologies
Institutional investors are increasingly recognizing the disruptive potential of DePINs. Notably, these projects are seen as utility-driven with significant long-term prospects, making them attractive to seasoned investors. Furthermore, DePINs hold the potential to mainstream cryptocurrency by simplifying interactions with Web3 protocols.
Pranav Kanade, a portfolio manager for VanEck’s digital assets alpha fund, articulated this vision in an interview with CoinDesk. He stated, “We believe DePIN is a category that has the potential to host a killer app with a billion users. These users would be using public blockchains without necessarily realizing they are interacting with a crypto product.”
Why Are Investors Bullish on DePINs?
It is not surprising to see more serious and seasoned investors pouring more and more funds into these projects, which they see as purely utility-driven and with long-term prospects.
Also, if we look at the trends, combined market cap of DePIN projects jumped by over 400% in 2024. In the first week of 2025, the trend continues with the overall market cap of top DePIN projects jumping by over 5%.
The key reasons why investors are bullish on DePINs can b e summarized as follows:
- They are utility-driven which creates tangible value by helping build critical infrastructure in a decnetralized manner.
- DePINs can fuel fast mainstreaming of crypto.
- The flow of institutional funds and positive trends will attract further investments.
From what we see, with strong institutional backing and growing market momentum, DePINs are well-positioned to drive the next wave of innovation in the blockchain and crypto space.
Note: This news article is solely for informational purposes and must not be construed as an investment advice. The views expressed in this article are based on data aggregated from reputed market research and analytics firms. The Dabba Network is not liable for any investment decision or otherwise made on the basis of this article.
