Solana Makes Strides with DePIN

Decentralized physical infrastructure networks (DePIN) are gaining momentum as advocates discover new ways to broaden adoption and interest in cryptocurrency beyond our often insular market. The rapid expansion of Helium Network’s HNT—surging by 70% in just the last month—has placed decentralized infrastructure networks at the forefront of discussions about demonstrating crypto’s real-world utility.

Even if this sector’s growing prominence doesn’t pull the wider market out of its current stagnation, there’s increasing enthusiasm about using crypto to enhance access to both tangible and digital resources, particularly through emerging protocols on Solana.

Solana’s DePIN Advantage

DePIN (decentralized physical infrastructure) projects are blockchain-driven networks where users provide resources in return for token incentives. These networks may involve physical resources such as cellular networks and energy distribution or virtual resources like computing power, bandwidth, and cloud storage.

This year, Solana’s DePIN ecosystem has seen remarkable expansion, with several protocols reaching record highs. These achievements highlight the increasing traction of DePIN on Solana and emphasize the platform’s capacity to support scalable, high-performance decentralized infrastructure networks.

Emerging Physical Infrastructure Networks

As DeVIN tackles AI’s supply limitations, the unique ability of crypto to extend real-world physical resource networks sets it apart, making the initiatives developing these solutions especially noteworthy.

Helium

Helium is a decentralized blockchain platform designed to develop a global wireless infrastructure. It utilizes a Proof of Coverage consensus mechanism, where participants offer wireless network access by operating Helium hardware and are rewarded with the network’s native token, HNT. These hotspots collectively create a large, low-power network for IoT devices.

In 2024, Helium has experienced considerable growth, particularly through its MOBILE Network, a subDAO that extends decentralized coverage to cellular networks by building a decentralized 5G infrastructure.

Helium Hotspots equipped with 5G radios play a crucial role in this model, which has been highly successful—MOBILE now generates approximately 90% of Helium’s revenue and supports over 112,000 users with its $20/month unlimited data plan, leveraging a partnership with T-Mobile for distributed coverage. Meanwhile, Helium’s IOT Network, another subDAO, is also experiencing rapid growth.

DAWN

Created by wireless provider Andrena, DAWN seeks to decentralize internet services, particularly in regions where traditional infrastructure is either unavailable or prohibitively expensive. Similar to how solar panels allow consumers to sell excess electricity, DAWN enables users to share their internet access. It uses a “proof of backhaul” system to verify node throughput, ensuring stable connections and establishing a decentralized, trustless network. DAWN offers internet for under $10 per month, positioning itself as the most affordable broadband provider in the industry.

To fuel growth, DAWN uses Medallions, which reward holders with 12% of on-chain revenue in areas where Medallions are staked. The protocol is currently being tested by more than 3,000 households in New York City, generating $1 million in annual recurring revenue. Upon its official launch, DAWN is projected to serve over 3 million U.S. households. The network’s native token, also called DAWN, allows users to purchase bandwidth and earn rewards for maintaining connectivity, referring others, and verifying the network.

Dabba

Supported by Y Combinator and Multicoin Capital, Dabba is centered on expanding high-speed internet access throughout India via its DePIN network, addressing the country’s low broadband penetration. To bridge the significant connectivity gap, Dabba partners with over 150,000 Local Cable Operators (LCOs) to extend internet coverage nationwide. These LCOs, primarily located in underserved regions, receive essential tools, hardware, software, and funding to grow their networks and increase their subscriber base.

By utilizing the DBT token with a mint-and-burn mechanism, Dabba ensures efficient network economics. Its decentralized model enables rapid infrastructure expansion, particularly in rural and semi-urban areas that have been overlooked by large telecom providers focusing on urban centers.

DePIN: Looking Ahead

As the crypto market cycles through existing value, DePIN networks have surfaced as a promising avenue for reigniting interest and pushing the boundaries of the space. With the ongoing expansion and evolution of these infrastructure networks, they could provide the catalyst needed to lift the market from its current stagnation and enter a new growth phase, all while showcasing the powerful coordination capabilities of blockchains and tokens to the broader world.

Solana, with its high scalability and low transaction costs, has emerged as the ideal platform for these networks, providing the technological backbone that DePIN protocols need to succeed.