DePIN Protocol on Solana Sees Surge in Adoption in 2024

Solana is looking to dominate the DePIN sector as it overtook the memecoin scene.
Among its top projects include Render, Helium Network, and Shdwdrive.

So far, 2024 has been a successful year for DePIN protocols on the Solana blockchain, with a spike in adoption led by Render and Helium. Solana is on track to dominate the Decentralized Physical Infrastructure Networks (DePINs) sector after a similar experience in the memecoin ecosystem.

Render Take the Lead on Solana

The DePIN sector has become a high-priority segment of the Web3 space as infrastructural efficiency and resilience become increasingly essential to industries like Artificial Intelligence (AI) and data storage. Against this background, Solana has become the chain of choice for several potential DePIN initiatives that cut across several industries and application categories.

Specifically, Render (RNDR), one of the leading decentralized computer networks, has seen an astounding 66% increase in node operators since migrating from Ethereum to Solana. According to a report by crypto analytics provider Flipside, Render transferred to Solana due to the Blockchain’s speed, scalability, and affordability. Newly registered DePIN projects, like io.net, also cite similar reasons for choosing Solana.

The Flipside report notes compute, storage networks, connectivity, and data/sensor as the four main DePIN sub-categories that have matured within Solana. According to the details, Render topped the decentralized computing segment.

In January 2024, the project hit a record high of 1920 node operators, representing a 66% increase post-Solana migration. Accordingly, rewards for node operators surged in January, with a 34% average in the first half of 2024.

Notably, the peer-to-peer GPU marketplace provided by Render offers a Web3 alternative to AWS or Google Cloud. As further stated in the report, Render changed its focus to AI/Machine Learning, and if the AI story continues, it may stand out in the segment.

The next biggest DePIN sub-category on Solana was connectivity. According to the report, the Helium Network has emerged as the top project amid soaring membership numbers. Helium launched its decentralized wireless network in 2019 and grew its coverage worldwide, as previously reported by Crypto News Flash. Two recent projects in this area are Wife Dabba and Pollen Mobile.

The third and fourth largest categories are the decentralized sensor and data storage, respectively. Hivemapper and Shdwdrive are the projects currently leading this category. Overall, Render, Hivemapper, and Helium are the three well-known projects leading over 25 projects in the Solana DePIN ecosystem.

At press time, SOL is down by 4.55% in 24 hours and trading at $166.37, with market cap and trading volume standing at $75 billion and $5.6 billion respectively.

The Growth of DePINs

DePIN and projects ranging from global positioning and mobile networks to connected cars are ushering democratized access and opportunities for providers and customers.

Remarkably, Polygon is another platform that is home to an array of DePIN projects. Following reports from Crypto News Flash, some of the projects on Polygon include DIMO Network, GEODNET, fleekxyz, amongst others.