Analyst Predicts ‘Supercycle’ for DePIN Sector

The DePIN sector is experiencing rapid growth as major companies like Amazon Web Services, Google Cloud, and Cloudflare seek efficient scaling solutions. This was stated by the researcher known as Emperor Osmo.

A DePin Supercycle is upon us.

We are entering a golden age where Web3 projects significantly enhance the growth of Web2 platforms.

I’m betting on a protocol transcending these boundaries, igniting a Decentralized Cloud Revolution.? pic.twitter.com/iwBswHKz9V

— Emperor Osmo? (@Flowslikeosmo) June 30, 2024

“A DePIN supercycle is upon us. We are entering a golden age where Web3 projects significantly accelerate the growth of Web 2.0 platforms. I am betting on protocols that transcend these boundaries and ignite a decentralized cloud revolution,” the analyst wrote.

According to Emperor Osmo, the sector’s growth is driven by the rapid development of artificial intelligence, which he compared to the spread of the internet in the 1990s.

The researcher is betting on “key” DePIN projects io.net (IO) and Aethir (ATH), which are expected to capture a significant market share:

“As AI models become more complex, the demand for graphics processors grows. This presents a great opportunity for startups to capture this sector early and establish themselves as major [cloud service] providers.”

The success of DePIN “will come down to network effects,” similar to the development of traditional companies like Uber and Airbnb. Emperor Osmo highlighted several promising projects that have announced airdrops:

• io.net (IO) — down 50% from its historical high in July;
• APhone — a decentralized cloud smartphone, currently without a token;
• CARV — a modular data layer for AI and gaming, currently without a token;
• Delabs Games (GAME) — a gaming protocol, team preparing for an airdrop;
• Zero1 — a decentralized artificial intelligence ecosystem, currently without a token;
• Rivalz Network (RIZ) — a first-level AI network, coin distribution planned for Q3;
• Sophon (SOPH) — a zkSync-based blockchain, team preparing for an airdrop.

The YouTube channel Altocoin Daily shared a list of already launched DePIN tokens that “must be known in 2024”:

• RNDR (-1.8% over two weeks);
• FIL (-12%);
• ATH (+8.6%);
• THETA (+1.8%);
• GRT (-3.8%);
• TRAC (+10.9%);
• XCH (-10%);
• WMT (-8.5%).

According to CoinGecko, at the time of writing, the market capitalization of the DePIN sector stands at $23.3 billion.

Back in May, analysts at Messari reported that another emerging sector of the crypto market, RWA, had reached $8 billion in locked assets.