Investors Bet Over $1 Billion on Decentralized Networks Despite Sparse Users

Venture capitalists have invested over $1 billion in decentralized physical infrastructure networks (DePIN), seeing major potential despite few users so far.

DePIN projects build out physical infrastructure like wireless networks in a decentralized, token-incentivized way. Total market cap exceeds $25 billion.

Many DePIN projects are built on Solana, benefiting from its high bandwidth and low fees compared to Ethereum.

Investor excitement continues but projects generate little revenue currently, lacking users. Attracting users with clear demand is key.

DePIN has risks if token rewards don't provide reliable revenue or if decentralized services can't match centralized incumbents in quality.