DEPIN Track Investment Logic Overview
Navigating the Core Sector: Balancing Institutional Fundamentals and Small Fund Emotions for Fair Launches
In the nascent stages of market recovery, where funds are yet to exert significant influence, retail investors are drawn to equitable chip distribution and narrative innovation. The catalyst for the surge in such assets lies in the efficient dissemination of information. Meanwhile, institutional funds demand assets grounded in a longer-term logic, necessitating the creation of robust moats to mitigate investment volatility and accommodate substantial funds. The DEPIN track, as a long-term asset category, boasts a transparent fundamental logic, an optimized cost structure, well-defined use cases, and stands as a pivotal element in the Web3 infrastructure. Simultaneously, it provides a cost-effective means for both institutional and retail investors to acquire chips, catering to diverse preferences.
Elevated Entrepreneurial Barriers Result in Scarce Asset Supply and High Success Rates
A scrutiny of projects within the top 1000 market cap reveals fewer than 50 circulating assets in the DEPIN category. In periods of heightened market sentiment, the count of non-circulating projects dwindles to less than 30. Since 2017, approximately 10 projects with a market cap around ten billion USD, including Filecoin, Arweave, Theta, Helium, etc., have emerged, presenting lucrative investment opportunities. The formidable entrepreneurial barriers and protracted development cycles mitigate the likelihood of new projects flooding the market with subpar supply.
Growing Infrastructure Demands in AI and Gaming Propel Web3 Adoption by DEPIN
Decentralized infrastructure has long been a focal point for blockchain's mass adoption. The industry's evolution from simple protocol projects in 2017 to diverse tracks like DeFi, middleware, NFTs, etc., has amplified the demand for technical services in tandem with user scenario expansion. The rise of AI agents and gaming projects will further stimulate the industry's need for computing, paving the way for new narratives and practical scenarios for DEPIN.
A Three-Dimensional User Structure and Closed-Loop Fund Flow Prolong Project Lifecycles
The success factors for most industry projects revolve around technological and application scenario monopolies, robust branding, or the distribution of private domain information (Meme type). DEPIN projects not only offer the potential for a closed-loop business logic but also boast a more three-dimensional user hierarchy, encompassing B-side miners and demand parties, C-side miners and users, token traders, etc. Once an effective network effect takes hold, it captures more value and attracts funds more efficiently. The "thick value layer" results in a more stable lifecycle, distinguishing itself from projects reliant solely on brand-driven traffic, which often experience rapid growth followed by prolonged decline.
I. Overview of DEPIN by Messari
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Messari classifies the DEPIN track into four distinct segments:
Server Network, Wireless Network, Sensor Network, Energy Network