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This year, the cryptocurrency market has seen a revival of legacy tokens as interest-based narratives gain renewed momentum. Despite this momentum, DePIN struggled to keep pace, falling out of focus.
BeInCrypto spoke with several experts to understand why one of the most profitable sectors in the world of cryptocurrency has not been able to capture sustained market interest and what could come next.
Understand DePIN
DePIN, the abbreviation of Decentralized Physical Infrastructure Networks, means A system based on blockchain technology Organize, finance and operate real-world infrastructure through decentralized incentives.
Instead of relying on traditional companies to build networks such as wireless coverage, storage, sensors or power networks, DePIN distributes the work to individuals and small operators who contribute hardware and receive tokens as compensation.
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This model lowers upfront costs, expands global reach, and unpacks infrastructure that was previously difficult to scale. By aligning incentives with current demand, DePIN aims to build more flexible and efficient systems.
Why is DePIN still suffering in 2025?
However, this field continues to face challenges. According to Artemis data, it ranks among the 10 worst sectors this year. The DePIN market will decrease by more than 74% in 2025.
But why does this happen? Sami Kassab, managing partner at Unsupervised Capital, told BeInCrypto that the vulnerability in The altcoin market has naturally impacted In DePIN too.
According to him, macroeconomic conditions explain part of the slowdown in the sector, but not all. The deeper problem, he said, is that “there is still no real DePIN hack.”
Kassab added: “The other side of the coin is that DePIN builds a real infrastructure and real companies. This takes a long time, which is not in line with the cryptocurrency market. Investors are used to rapidly changing narratives and overnight successes.”
Liu Fan, co-founder of Cysic, revealed that the main obstacle for DePIN is the gap between infrastructure construction cycles and the short attention span of the market for cryptocurrencies. While non-fungible tokens (NFTs), memecoins, and major altcoins thrive on culture, identity, and enthusiasm, DePIN acts as a layer of infrastructure that most users find difficult to emotionally connect with.
Its value is quietly growing through the deployment of real computing hardware and computing power—a progress that is not immediately visible or profitable. Van said that,
“Most investors still see token value as the only measure of success, which is not the case with infrastructure systems. DePIN networks create tangible value through services such as computing power and data delivery. Its performance is measured by usage, speed and reliability, not on short-term fluctuations. Because this model does not reflect traditional crypto dynamics, it remains outside the comfort zone of most of market participants”.
Maria Carolla, CEO of StealthEx, shared a similar view. She stated that most investors continue to target assets that can trade quickly instead of sectors that require deeper knowledge.
“Within crypto cycles, speculation will always dominate, and the convoluted approach of DePIN does not help its position either. Most investors do not understand well how tokens incentivize the collection of data, storage, or communication, and how it translates into income. If we talk about traditional markets, the infrastructural aspect is still the least glamorous, but that DePIN is still the most important version. BeInCrypto.
Vinayak Kurup, investment and research partner at Escape Velocity Crypto (EV3), noted that the slowdown of DePIN is not only a matter of market perception – but the difficulty of building real-world networks that require physical hardware, manufacturing and deployment.
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“Often compared directly to large existing network providers; the challenge for DePIN operators is to provide a similarly reliable and simple user experience for a small fraction of capital while operating in verticals where user lock-in is high. Together, these factors mitigate DePIN’s reach,” highlighted Kurup.
Increased use, lower prices: Experts explain the widening fundamental DePIN gap
Despite the sector’s poor performance, usage metrics paint a different picture. Rates rose to their highest level in October as well The broader market continued to decline.
This suggests a growing gap between falling token prices and rising real usage. According to Kassab,
“The fees are increasing, but they are still small compared to the value of emissions spent from the beginning or to the revenues of the existing companies that these networks aim to disrupt.”
Carolla said this disconnect is typical in emerging infrastructure sectors, where fundamentals can strengthen far ahead of prices. She explained that sentiment often fluctuates independently of interest: investors can move away from risk in unstable markets, even when real activity continues to grow.
She commented that higher fees and network activity during a bear market instead show that real users still find value in these services, both for storage and computing. In the long run, these are the metrics that will matter more than the token’s short-term performance, once revenues eventually trickle down with usage, as they did in the early days of the Internet.
Fan also emphasized that speculation and actual use were clearly separate. He said that price action largely reflects investor sentiment – what he called “Wall Street sentiment” – while rate hikes capture real network demand. When rates rise in a bearish environment, it indicates that DePIN’s underlying services are gaining momentum regardless of market cycles.
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The CEO of BeInCrypto stated that such variability is common in the first cycles of the infrastructure. The networks are used more, but the market has no price in it because investors still treat DePIN tokens as speculative assets.
Could DePIN be the next sector to take after privacy coins?
It is clear that DePIN sees a real market demand, which raises an important question: could the sector eventually see a takeoff similar to the one it has seen? Privacy coins this year?
Carolla thinks the answer leans towards yes. She noted that cryptocurrency cycles tend to move from narrative-driven speculation to phases where real interest and adoption take center stage.
According to her, if privacy coins reflect a push towards digital sovereignty this year, DePIN could be in a similar demonstration – one based on measurable productivity. I commented,
DePIN could be significantly productive by next year. Whether it’s physical infrastructure or decentralized data, network builders are laying the groundwork, anticipating and preparing for the time when the market starts to value cash flow and membership over comics. When this change happens, DePIN will be the sector that can demonstrate real and measurable traction in the real world.
Van echoed this sentiment. He suggested that once the market returns to clear sectors of interest, DePIN emerges as a natural beneficiary. He pointed to the indicators on the chain that are already tangible and tend to rise.
Network fees are rising, node participation is expanding, and operational performance continues to improve. If these points of reference become standard references, DePIN can be recognized as a quiet builder of commercial architecture.
Kurup offers a broader view. While acknowledging there is uncertainty about broader market conditions, he said investor preferences are gradually shifting towards projects with recurring cash flows and strong fundamentals – an environment that plays directly in favor of DePIN’s capabilities.
He said: “But it is also likely to be driven by other changes in the market. 2026 will be the year of the return of DePIN”.
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Why organizations can unlock the next phase of DePIN
Experts also pointed to several catalysts that could significantly transform the sector, with Carolla and Phan agreeing that corporate adoption could be the key driver.
The co-founder of Cysic explained: “Corporate adoption is the strongest driver. Regulation and investor performance will follow. Once companies begin to integrate the decentralized infrastructure into existing systems, trust in the model will increase. The credibility of DePIN depends on measurable performance, and the institutional purchase provides exactly this.”
Kurup emphasized that many factors will likely come together to drive the transformation. Investor psychology remains crucial, but he said increased visibility and mainstream presence could accelerate change.
Kurup shared that, “Now, I see Helium announcing its free phone plan in the New York subway – compared to its Web2 counterparts, DePIN has been funded recently enough to enter the mainstream.”
What role will DePIN play in the future of cryptocurrencies?
While optimism about the sector’s trajectory remains strong, it’s worth questioning DePIN’s true place in the broader cryptocurrency ecosystem. Will DePIN remain a limited bet, or is it ready to be the bridge for cryptocurrencies to the real economy once the markets catch up?
The CEO of StealthEx argued that DePIN already acts as a bridge – the market has not fully recognized it. As the blockchain moves from abstract financial experiments to practical and real uses, I believe that DePIN will build on many of these changes.
Carolla returned to BeInCrypto that, “Whether it is powering smart cities, AI distributed computing, or IoT networks, these systems make cryptocurrencies tangible. So, although it may seem like a limited niche today, it is actually fundamental. When people start to interact with the decentralized infrastructure without realizing that it is really a cryptocurrency when the Decentralized is really a leader.”
Fan pointed to the developments in 2025, especially the increase in real asset tokenization (RWA) and the increase in institutional adoption, as signs that the real economy already values ​​decentralized systems. In his view, DePIN is poised to become the infrastructure layer that connects DeFi to enterprise use cases.
Fan believes that “DePIN will be one of the bridges for crypto to traditional TradFi finance as the sector matures, and will serve as the infrastructure layer that supports DeFi in a realistic capacity. As institutions look for reliable and cost-effective infrastructure to support secure settlement, DePIN will move from a limited experience to the fundamental layer of digital finance.”
Whether the market is performing now or years from now, experts agree on one point: DePIN’s long-term value lies not in speculation, but in becoming the hidden infrastructure that powers the real-world impact of cryptocurrencies.
