Decentralized Infrastructure in the Crypto Ecosystem: From DePIN Market to Practical Implementation

The decentralized physical infrastructure (DePIN) market is undergoing significant changes. While at the end of 2024, the total market capitalization of this segment exceeded $32 billion, by early 2026, a natural correction occurred. Nevertheless, DePIN remains one of the most promising areas of crypto industry development, attracting attention from both venture investors and major technology companies.

DePIN: Bridging Blockchain and Physical Infrastructure

Decentralized physical infrastructure networks are overcoming the critical gap between the digital blockchain world and tangible reality. This involves integrating distributed ledger technology with energy grids, wireless communications, data storage systems, and the Internet of Things.

The core idea of DePIN is to use tokenized incentives. Network participants earn rewards in digital assets for providing their physical resources. This approach creates a distributed, fault-tolerant, and cost-effective infrastructure where no single control center can become a bottleneck or vulnerability point.

Practical implementations are already visible: energy systems allowing homes with solar panels to sell electricity to neighbors; electric vehicle charging networks; environmental monitoring systems. Projects like U2U Network develop modular solutions compatible with EVM and specifically optimized for DePIN, accelerating the growth of the entire segment.

How Decentralized Physical Infrastructure Networks Work

The operation of DePIN relies on three key components:

Blockchain architecture creates an immutable record of all transactions and automates processes via smart contracts. This ensures transparency and eliminates the need for trusted intermediaries.

Tokenization system incentivizes participants to contribute their resources. Rewards in digital tokens can be exchanged for other assets or used to pay for services within the ecosystem. This creates a positive growth cycle for the network.

Operational interoperability ensures that DePIN projects work seamlessly both among themselves and with traditional systems. This is critical for achieving mass adoption.

A practical example: a homeowner with solar panels connects their system to a DePIN network. Excess electricity is automatically offered to neighbors via a smart contract. All payments are recorded on the blockchain, and the participant receives tokens as rewards. No central intermediary company is needed.

Competitive Advantages of DePIN in the Current Context

The decentralized infrastructure model offers several significant benefits:

Enhanced security and reliability: The absence of a single point of failure means that a malfunction in one component does not paralyze the entire system. Blockchain verification provides cryptographic protection.

Scalability without bureaucratic bloat: Projects like Filecoin and Arweave demonstrate how thousands of independent nodes can efficiently store petabytes of data. In Q3 2023, the Arweave network processed 28 billion transactions involving over 130 active projects.

Cost reduction and democratized access: Tokenized incentives enable the creation of powerful networks without massive capital investments. U2U Network and similar platforms prove that high-performance infrastructure can be accessible to startups and small organizations.

Innovation and cross-platform compatibility: Platforms like Streamr focus on decentralized real-time data exchange with interoperability across different networks.

Currently, the DePIN segment remains one of the most dynamic in the crypto industry despite the market correction of 2025–2026.

DePIN for Computing: From ICP to Bittensor

Internet Computer (ICP) is an ambitious project by the DFINITY Foundation aimed at creating a “world computer.” Instead of centralized cloud centers, ICP uses a global network of independent nodes. Developers can deploy decentralized applications without relying on traditional IT infrastructure.

In 2024, the project launched updates such as Tokamak, Beryllium, and Stellarator. As of February 2026, the ICP price is $2.24, reflecting a market correction over the past year. However, its market cap of $1.23 billion still positions ICP as a significant player. The roadmap includes integrating AI capabilities and compatibility with Solana.

Bittensor (TAO) occupies a special place at the intersection of blockchain and artificial intelligence. The protocol connects a machine learning network where participants collectively train models and earn TAO tokens based on the informational value of their contributions. This creates a peer-to-peer AI service marketplace.

In 2024, Bittensor integrated Proof of Intelligence and a decentralized Mixture of Experts architecture. The current TAO price is $181.50 (market cap $1.74B). Despite being lower than a year ago, the project continues to develop its capabilities. Plans for 2025–2026 include expanding applications across various industries and strengthening the decentralized ML protocol.

Decentralized Storage: Filecoin, Arweave, and Competitive Dynamics

Filecoin (FIL) functions as a data storage marketplace between providers and clients. Users pay for reliable, verifiable storage on a peer-to-peer basis.

2024 saw the launch of Filecoin Virtual Machine (FVM), opening new use cases up to deploying Ethereum-compatible smart contracts. The ecosystem’s TVL exceeded $200 million. As of February 2026, FIL price is $1.01, with a market cap of $760.9 million. The project is working on expanding FVM programming and enabling custom agent creation.

Arweave (AR) offers permanent data storage via its unique blockweave structure and SPoRA consensus mechanism. In November 2024, the network released Protocol Upgrade 2.8, improving efficiency and energy use. The current AR price is $2.08, with a market cap of $136.08 million. Over the past year, the price has declined, but the network’s infrastructure remains one of the most reliable for archiving data.

Both projects demonstrate that decentralized storage is not just a concept but a working economic model capable of scaling.

AI and DePIN: The New Frontier of Artificial Intelligence

Grass Network (GRASS) monetizes unused internet bandwidth for collecting and processing web data needed for AI training. By running a Grass node, users allow the network to utilize their bandwidth.

In 2024, the platform gathered 2 million users in beta and released 100 million GRASS tokens on October 28 via airdrop. The current GRASS price is $0.19, with a market cap of $90.45 million. Since launch, the token has more than halved in value, reflecting market correction, but the concept of data monetization for AI remains relevant.

ShieldEum (SDM) combines DePIN with Web3 cybersecurity. The platform provides hosting infrastructure, encryption, threat detection, and high-performance computing. In 2024, the project attracted $2 million in USDT and released applications for Windows, Mac, Linux, Android, and iOS.

Both projects illustrate how DePIN can be applied in specialized AI and security segments.

Network Infrastructure DePIN: Helium, Theta, and Evolution of Connectivity

Helium (HNT) creates a decentralized wireless network for IoT devices. Users set up hotspots that provide coverage and mine HNT. The current price is $1.55, with a market cap of $288.41 million. Although operating on Solana, the network continues expanding with support for 5G and new sub-tokens (IOT, MOBILE).

Theta Network (THETA) addresses video streaming issues through content delivery decentralization. Participants share bandwidth, improving stream quality and reducing provider costs. The current price is $0.21, with a market cap of $208.7 million. In 2024, the project introduced EdgeCloud—a solution for edge computing combining cloud and edge.

Specialized DePIN Projects: IoT and Identity

The Graph (GRT) functions as a decentralized indexing protocol for blockchain data. Developers create subgraphs for efficient data querying, facilitating dApp development. The current GRT price is $0.03, with a market cap of $310.97 million. In 2024, the project expanded support to Ethereum, NEAR, Arbitrum, Optimism, Polygon, and others. The 2025–2026 roadmap includes expanding data services and optimizing indexer performance.

JasmyCoin (JASMY) integrates blockchain with IoT to enhance data sovereignty. Founded by former Sony executives, the project creates a decentralized marketplace where users control and monetize their data. The current price is $0.01, with a market cap of $290.98 million. Strategic alliances with IoT device manufacturers are planned for 2025–2026.

IoTeX (IOTX) combines blockchain with IoT, using Roll-DPoS consensus for high throughput. In 2024, IoTeX 2.0 launched with a modular DePIN architecture. The current price is $0.01, market cap $47.92 million. The ecosystem has grown to over 230 dApps and 50 DePIN projects. The goal is to connect 100 million devices by 2025.

Render Network (RNDR) addresses distributed rendering. Creators access GPU power via a decentralized marketplace. In 2024, the project migrated from Ethereum to Solana, rebranding RNDR to RENDER. The current price is $1.50, with a market cap of $776.62 million. Its applications expand into film, gaming, and virtual reality.

Challenges and Risks in DePIN Development

Despite its potential, the sector faces serious obstacles:

Technical complexity: Integrating blockchain with physical infrastructure requires deep expertise in security, scalability, and interoperability. Ensuring reliable communication between distributed nodes and physical assets remains a non-trivial challenge.

Regulatory uncertainty: DePIN projects intersect with regulation of both digital and physical assets. The evolving legal landscape complicates compliance across jurisdictions.

Proving economic viability: To achieve mass adoption, DePIN systems must demonstrate clear advantages over traditional solutions in cost, reliability, and convenience. Resistance from established industries can slow progress.

Crypto asset volatility: As seen in 2025–2026, token prices can fluctuate significantly, making them less stable incentives for participants.

Market Outlook for DePIN by 2028 and Beyond

Despite current corrections, the long-term outlook for DePIN remains optimistic. Analysts project the DePIN market could reach $3.5 trillion by 2028. This growth will be driven by:

• Increasing demand for decentralized storage and data processing
• Expansion of AI and machine learning requiring large volumes of high-quality data
• Growth of IoT ecosystems and the need for secure device communication
• Transition from centralized cloud services to more flexible decentralized solutions

Moving from centralized architectures to distributed systems promises more efficient, inclusive, and resilient infrastructure solutions worldwide.

Conclusions

The decentralized physical infrastructure sector is at a critical stage of development. The current market correction is a normal part of maturation, not a sign of conceptual failure. DePIN projects focused on security, scalability, and practical applicability attract investors, developers, and industry giants.

As the technology matures and regulatory clarity increases, DePIN will play an increasingly important role in redefining how we build and manage infrastructure. Projects currently in early stages may, tomorrow, reshape the global resource and data economy.