Market
DePIN Set to Surpass Centralized Networks in Next 15 Years
The telecommunications industry faces several challenges, including the need for continuous infrastructure upgrades, rising service costs, and limited coverage in rural areas. As a result, many customers are exploring alternative options that ensure accessible and reliable connectivity.
Decentralized Physical Infrastructure Networks (DePINs) have emerged to remedy the issues posed by traditional telecommunications companies. BeInCrypto spoke with industry experts from Huddle01, Impossible Cloud Network, and Aethir to understand how DePINs lower the access barriers to connectivity by employing blockchain technology.
The Rise of DePIN Networks
Traditional telecommunications industries have relied on large infrastructure to provide internet access nationwide. Because of their large-scale nature, these projects require significant capital.
As a result, governments and large companies have traditionally been in charge of managing such resources.
DePINs were designed to change this approach by allowing for the decentralization of these networks. They leverage distributed ledgers and token incentives to build and maintain a decentralized and far-reaching infrastructure.
Providers receive tokens as rewards for continuing to provide services in the real world. The entire process is automated through smart contracts, allowing hardware interconnectivity, executing complex transactions, and managing rewards.
“DePINs fundamentally rethink how communication networks operate by leveraging decentralization and community participation. They use a network of distributed nodes contributed by the participants so the service can scale dynamically as more participants join. DePINs are also highly economical because they utilize underutilized resources like bandwidth and storage from everyday users,” explained Ayush Ranjan, Co-Founder & CEO at Huddle01.
Market sentiment and overall adoption seem to agree with DePINs’ utility.
A Promising Future for Decentralized Telecommunications
According to a Messari report, DePIN revenue reached over $500 million in 2024, a 100x increase from 2022.
Per the report, the number of active DePIN projects nearly doubled last year. DePIN tokens now represent 5% of the total cryptocurrency market cap, and over 13 million devices worldwide contribute to DePIN operations daily.
Experts across the industry expect this growth to continue.
“Because of this model, DePIN has the potential to outgrow centralized networks like Google, Microsoft and Facebook by 100s, if not 1000x in the next 15 years. It might not be as flashy and exciting as memecoin trading, but it completely changes the game,” predicted Kai Wawrzinek, CEO and Co-Founder of Impossible Cloud Network (ICN), a decentralized multi-service cloud platform.
Today, the DePIN industry boasts a market capitalization of nearly $23.3 billion and over $2 billion in trading volumes. According to CoinGecko data, Bittensor, Render, Filecoin, Theta Network, and The Graph are among the projects leading the current ranking.
The increase in decentralized telecommunications options reflects a greater need for fairer and more inclusive approaches to internet connectivity.
Driven by the ever-increasing demand for connectivity, the telecom industry faces heightened pressure to innovate. However, current network models, often characterized by vertical integration, struggle to meet this demand.
“Traditional centralized telecom models are expensive, slow to expand, and don’t consistently offer equal access. Within this traditional model, a few major companies control the infrastructure, which allows them to keep pricing high and often limits competition. Additionally, expanding coverage requires significant investment and time, ultimately leaving some areas underserved,” said Kyle Okatomo, Chief Technology Officer at Aethir, a decentralized GPU cloud infrastructure project.
This centralized model tends to monopolize service provision and inherently generates more inequality for areas with smaller populations or limited infrastructure.
“Centralized telecom providers tend to prioritize profitable urban areas, leaving rural and remote regions underserved. This became especially apparent during the pandemic when remote schooling peaked, and students in rural areas struggled with connectivity,” Ranjan told BeInCrypto.
Their concentrated power makes telecom providers more susceptible to targeted security attacks.
“Centralization often means data is stored in one place. This creates a huge single point of failure risk and often leads to breaches– just think of the AT&T hack last year that resulted in leaked data for 73 million customers,” added Wawrzinek.
Given these limitations, many telecommunications companies face increased competition from DePIN projects.
Empowering Communities Through DePINs
For Wawrzinek, the mission behind every DePIN project focusing on telecommunications improvement is simple:
“DePIN is about taking control away from one centralized entity and distributing it among the community– literally giving power back to the people,” he said.
The decentralized infrastructure provided by DePINs offers a clear Web3 use case, utilizing various technologies to connect service providers with end users. This decentralization helps make services more cost-effective and faster.
“DePINs expand internet access by decentralizing and democratizing critical infrastructure, moving beyond the limitations of discrete traditional centralized models. Said plainly, centralized networks are discrete, whereas decentralized networks can easily and quickly expand via community-based ownership and contribution. This creates a more flexible, cost-effective, and widely accessible alternative,” Okatomo told BeInCrypto.
By empowering communities to set up their own hotspots or internet service providers (ISPs), DePINs facilitate the creation of small local networks that others can access. Users pay for bandwidth, and providers receive payments directly.
In its latest report, Messari highlighted how DePIN projects like Helium Mobile, DAWN, and WiFi Map use tokenized models to simplify and improve internet connectivity.
“Helium allows users to run nodes to provide decentralized wireless access and earn tokens in return, DAWN on Solana turns users into localized ISPs, and WiFi Map rewards global WiFi sharing,” Wawrzinek explained.
These models encourage active participation from service providers and consumers, as everyone collaborates to ensure the infrastructure functions effectively.
“By contributing, they essentially own a part of the network. Unlike traditional systems where ownership typically requires payment, DePINs operate on a model where ownership is earned through contributions, with earning becoming a byproduct of participation,” Ranjan added.
Coordinated efforts with policymakers will be required to support the continued growth of the DePIN sector.
Addressing Regulation in the DePIN Sector
As DePIN projects continue to develop, they have begun to draw institutional recognition for their potential. Last November, the Harvard Business School decided to teach Helium Mobile’s DePIN strategy as part of its strategy curriculum.
While DePIN networks gain more acceptance, the issue of regulation within the sector is becoming increasingly important.
“Clear regulations that encourage investment and security can help foster growth within the DePIN ecosystem. They should also ensure that network flexibility remains intact while addressing concerns from both enterprises and consumers. Additionally, promoting collaboration across sectors along with independent, controlled testing helps regulators develop informed policies while proactively managing risk to build trust and stability within the community,” Okatomo told BeInCrypto.
Some industry experts in the United States emphasized the importance of avoiding one-sided discussions and adopting an open-minded approach to foster effective communication between regulators and DePIN leaders.
Three days before leaving office, former US Securities and Exchange Commission (SEC) Chair Gary Gensler sued Nova Labs, the developers behind the Helium Network.
The lawsuit claims Nova Labs defrauded its customers while breaching federal securities and regulations. The allegations focus on the company’s hotspot devices, which they have sold since 2019.
“Regulation is important for DePIN, but it needs to be thoughtfully implemented. For example, the SEC’s recent lawsuit against Helium is just not productive. Regulators need to understand DePIN business models and not just demonize anything to do with crypto. We do need clear regulations around tokenomics, data privacy, infrastructure deployment…we don’t need year-long lawsuits that make all innovation grind to a standstill. I’m all for an open dialogue between DePIN and regulators– and, in fact, I don’t believe we can grow without it. But, until now, it’s been a one-sided conversation, and that needs to change,” Wawrzinek told BeInCrypto.
In addition to improving dialogue with regulators, DePIN experts also plan to focus on other areas for improvement.
Overcoming Challenges in DePIN Adoption and Expansion
Leaders in the DePIN industry underscore the need for improved educational resources to responsibly educate society on DePIN use cases and drive broader adoption.
“The technical aspects of DePIN can be daunting for new users, which can make onboarding confusing,” said Ranjan.
To that point, Wawrzinek added:
“A bigger challenge is, perhaps, to do with the overall understanding and perception of web3 and crypto. There’s still a certain level of mistrust and a lack of education, but also many web2 companies –our clients included– don’t really want to get involved with crypto directly.”
The fact that limited regulations currently exist surrounding DePIN can also affect their stability.
“DePINs operate in a decentralized environment, often leading to unclear or nonexistent regulations. This lack of oversight can have major consequences for the security and stability of DePIN networks, especially in heavily regulated industries like electricity and telecommunications,” Ranjan told BeInCrypto.
He also pointed to scalability and efficiency as two aspects that must be closely monitored alongside DePIN expansion.
“As DePIN networks grow, the volume of transactions increases, potentially overwhelming current blockchain infrastructures and leading to performance issues,” he said.
Some projects like Huddle01 have explored and deployed Layer-3 blockchain solutions to enhance scalability.
Addressing these limitations while leveraging DePINs’ advantages could drive widespread adoption and create strong competition for established telecommunications giants.
DePIN Beyond Telecommunications
DePINs’ prospects seem very bright, and the presence of these networks extends far beyond the telecommunications industry. Several established projects tackle other issues related to energy grids, supply chain logistics, and identity solutions.
Some have started to employ artificial intelligence to improve operational efficiency, while use cases have extended to game developers, marketing agencies, and retailers.
“DePIN has the potential to replace existing systems and make them far better. It’s not just the internet –DePIN has wide applications across GPU computing, AI, gaming, you name it. There is still work to be done– especially when it comes to interoperability, without which DePIN projects are just operating in silos. But, if we do this right, we get a decentralized ecosystem where the individuals benefit –not the corporate giants– and it’s the corporations that will need to adapt. I really look forward to seeing that future,” Wawrzinek concluded.
If DePINs can overcome their current hurdles, they could usher in a new era of decentralized innovation with benefits that extend far beyond telecommunications.
Disclaimer
Following the Trust Project guidelines, this feature article presents opinions and perspectives from industry experts or individuals. BeInCrypto is dedicated to transparent reporting, but the views expressed in this article do not necessarily reflect those of BeInCrypto or its staff. Readers should verify information independently and consult with a professional before making decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
The crypto market has displayed mixed signals over the past week, with Bitcoin struggling around the $98,200 resistance level. As a result, most altcoins, including meme coins, have experienced sharp losses.
BeInCrypto has analyzed three meme coins—two are facing significant declines, while one is seeing gains despite the bearish market conditions.
Fartcoin (FARTCOIN)
FARTCOIN has experienced a 32% decline over the past week, trading at $0.38 after failing to breach the $0.60 barrier. The meme coin has struggled to regain upward momentum, highlighting the difficulty in surpassing previous resistance levels. As FARTCOIN faces these challenges, it becomes more vulnerable to further declines unless market conditions provide stronger support for a reversal.
After hitting a two-month low, FARTCOIN is currently holding above the support of $0.26. Should the price recovery fail, it risks consolidating around this level or potentially falling further, possibly to $0.16. The inability to break through key resistance points reflects traders’ ongoing caution, indicating that a full recovery may take longer to materialize.
However, if FARTCOIN can successfully secure $0.37 as a support floor, it could pave the way for a rise towards the $0.60 resistance. A successful breach of this level would invalidate the bearish thesis, potentially sending FARTCOIN beyond $0.69.
Popcat (SOL) (POPCAT)
POPCAT price has dropped by 23% over the past seven days, trading at $0.26. Despite this, the meme coin has managed to reclaim $0.23 as a support level. This recovery is still tentative, and POPCAT faces uncertainty as it attempts to regain lost ground and sustain a rebound.
POPCAT remains vulnerable to a potential drop to $0.20, as past performance indicates that the coin struggles to sustain recovery. Historically, when it doesn’t bounce back from key support levels, it often falls back to these levels to recover.
If the broader market momentum remains positive, however, POPCAT could break through resistance levels and rise toward $0.34 or even higher. With favorable conditions, the altcoin could target $0.49, invalidating the bearish outlook and setting the stage for more substantial gains in the coming days.
Brett (BRETT)
BRETT, one of the few top meme coins, has defied broader market trends, rising by 15.7% to trade at $0.049. This uptick signals a positive shift for the altcoin, suggesting that it may continue to gain momentum if favorable conditions persist.
The altcoin is establishing $0.047 as a support floor, which is critical for BRETT’s recovery. Holding this level will be essential for the altcoin to break past the resistance at $0.058, marking its next key target. Maintaining this support could pave the way for further upward movement in the coming days.
However, if $0.047 fails to hold, BRETT could see a pullback, potentially falling to $0.035. Such a drop would invalidate the bullish outlook and extend the losses for investors, signaling a potential halt in its recovery. A sustained breach of this support could significantly impact the altcoin’s future price action.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
The Bybit hack from this morning is already seeing a massive fallout, with conflicting narratives surrounding the security breach. The exchange is seeing extreme liquidity demand for withdrawals while Pi Network surges nearly 10%.
Due to high demand, users are experiencing difficulty withdrawing their funds, but CEO Ben Zhou has assured them that withdrawals will remain open.
Bybit Hack Leaves Crypto in Chaos
Bybit, one of the world’s leading crypto exchanges, is in a tumultuous moment right now. This morning, it suffered a $1.5 billion hack, which is already being called the “biggest security breach in crypto history.”
The whole community is scrambling, and nobody seems to have the full picture yet. However, Safe.eth, the multisig wallet that manages Bybit’s Ethereum cold wallet, denies any breach on their end.
“Safe’s security team is working closely with Bybit on an ongoing investigation. We have not found evidence that the official Safe frontend was compromised. However, out of caution, Safe {Wallet} is temporarily pausing certain functionalities. User security is our top priority, and we’ll provide more updates soon,” the firm claimed.
Essentially, Safe uses a smart contract-based wallet system to manage its Ethereum cold storage. If its front-end wasn’t compromised, this means authorized Bybit users had to sign off on the mechanism to enable the hack.
If the attackers managed to fool Bybit authorities into signing an exploit, they could rewrite the code and begin draining funds.
“Bybit signers had malware on their endpoints. They were trying to initiate legit transactions, but the malware was acting like a man-in-the-middle attack, they were connecting their hardware wallet to sign,” security firm Cyvers told BeInCrypto.
Because Bybit staff may have been the weak point in this hack, this has only added to the chaos. CZ, the former CEO of Binance, urged Bybit to halt all withdrawals, but this didn’t happen.
Zhou assured users that the exchange has enough funds to remain solvent, and Arkham Intelligence identified a transfer proving at least $500 million in reserves. Zhou even claims that Bybit will take loans to ensure all withdrawal requests are fulfilled.
“Not an easy situation to deal with. Might suggest to halt all withdrawals for a bit as a standard security precaution. Will provide any assistance if needed. Good luck,” CZ wrote on X (formerly Twitter).
Pi Network Turned Bullish After Bybit’s Woes
There is absolutely zero firm evidence, but some in the crypto community believe that Pi Network enthusiasts were somehow responsible.
Pi Network’s mainnet launched yesterday with the biggest airdrop in crypto history. While several exchanges listed the token on day one, Ben Zhou firmly denounced it as a scam yesterday. Bybit has been consistently reluctant to list the token.
As a result, there has been a strange positive reaction to the PI market after the Bybit hack. The token’s price surged nearly 10%.
In short, everything is in chaos. In the latest livestream, Zhou discussed some of Bybit’s next steps after the hack. He claimed that withdrawals are still open, but traffic is 100x higher than usual, so users may not be able to access services smoothly.
“We’ve experienced massive withdrawals since the $1.4 billion ETH hack. Even if we are experiencing a bank run, it’s not an issue. We have enough tokens to give to the clients” Zhou said.
The firm will not try to buy back lost assets immediately, relying on bridge loans, but remains adamant that it can keep its users whole.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
The SEC is dropping its lawsuit against Coinbase, according to an announcement from CEO Brian Armstrong. However, the Commission’s lawsuit against Ripple remains open for now, raising more questions.
Both lawsuits deal with certain cryptoassets’ status as securities, not commodities. For Coinbase, this interpretation would hamper operations, but it could prove fatal for the XRP issuer.
SEC Drops the Coinbase Suit
Brian Armstrong, the founder and CEO of Coinbase, is having a good day today. Recently, the company has been advocating for better US crypto regulation, and it achieved a major milestone today. Armstrong announced that the SEC was dropping its 2023 lawsuit.
“Great news! After years of litigation, millions of your taxpayer dollars spent, and irreparable harm done to the country, we reached an agreement with SEC staff to dismiss their litigation against Coinbase. Once approved by the Commission (which we’re told to expect next week) this would be a full dismissal, with $0 in fines paid and zero changes to our business,” he said.
Armstrong called this development “hugely vindicating,” claiming it was a real challenge to resist the Commission’s “mafia tactics” under the previous leadership.
He also said that this suit is a groundbreaking development for the future of crypto in the US because it would’ve substantially hindered exchanges’ ability to do business nationwide. For Coinbase, the SEC legal battle appears over.
However, the SEC has another active crypto lawsuit – its fight against Ripple. The two suits have major similarities, both hinging upon the notion that certain cryptoassets are securities. This interpretation opens crypto-related businesses to much stricter regulation.
How Will the Coinbase Settlement Impact the XRP Lawsuit?
For Coinbase, the issue is that the SEC insisted upon a lack of clarity with these classifications, essentially claiming that it could demand the exchange delist any token at a whim. In the Ripple case, however, it alleged that the firm was forbidden from raising funds through XRP token sales without registration.
In both instances, the SEC leaned on a lack of clear standards for crypto.
Even before today’s announcement, the SEC had already signaled it would drop charges against Coinbase, but the process has been murkier for Ripple. The Commission recently removed the XRP lawsuit from its website, and may be waiting for a few broader changes to dismiss it outright.
Ultimately, however, the Ripple case may be more complicated. The SEC alleged that Coinbase was hosting certain unlawful assets, and complying would severely impact the business model for all exchanges.
In the latter suit, it claimed that selling XRP was itself a securities violation, which would severely impact a great number of token projects.
The SEC is already taking a few measures to lay the groundwork for a broader policy realignment. Commissioner Peirce claimed that it wants to formally remove some tokens’ security status.
Also, the Commission is looking to reduce its crypto enforcement activities generally. Overall, the Coinbase case does provide some optimism for the XRP community.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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