Solana
DePIN protocol on Solana sees adoption increase in 2024
- Solana seeks to dominate the DePIN sector by overtaking the memecoin scene.
- Among its main projects are 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 poised to dominate the decentralized physical infrastructure network (DePIN) sector after a similar experiment in the memecoin ecosystem.
Render Take the lead on Solana
The DePIN sector has become a high-priority segment of the Web3 space as infrastructure efficiency and resilience become increasingly critical to sectors such as artificial intelligence (AI) and data storage. In this context, Solana has become the channel of choice for several potential DePIN initiatives that touch multiple industries and application categories.
Specifically, Render (RNDR), a leading decentralized computing network, has seen an astonishing 66% increase in node operators since Ethereum migrated to Solana. According to a report by crypto analytics provider Flipside, Render was moved to Solana due to the speed, scalability and affordability of Blockchain. Newly registered DePIN projects, like io.netalso cite similar reasons for choosing Solana.
The Flipside report notes compute, storage networks, connectivity, and data/sensors as the four main DePIN subcategories that have matured within Solana. According to the details, Render was leading the decentralized computing segment.
In January 2024, the project reached an all-time high of 1,920 node operators, representing a 66% increase after the Solana migration. As a result, node operator rewards jumped in January, averaging 34% 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 detailed in the report, Render has shifted its focus to AI/Machine Learning, and if the AI story continues, it could stand out in the segment.
The second most important DePIN subcategory on Solana was connectivity. According to the report, the Helium network has become the flagship project in the face of skyrocketing membership. Helium launched its decentralized wireless network in 2019 and expanded its coverage worldwide, as before reported by Crypto News Flash. Two recent projects in this area are Wife Dabba and Pollen Mobile.
The third and fourth largest categories are decentralized sensors and data storage, respectively. Hivemapper and Shdwdrive are the projects currently leading in this category. Overall, Render, Hivemapper and Helium are the three well-known projects leading more than 25 projects in the Solana DePIN ecosystem.
At press time, SOL is down 4.55% in 24 hours and trading at $166.37, with market cap and trading volume standing at $75 billion and $5 billion, respectively. 6 billion dollars.
The growth of DePINs
DePIN and projects ranging from global positioning to mobile networks to connected cars are paving the way for democratized access and opportunities for suppliers and customers.
Remarkably, Polygon is another platform that hosts an array of DePIN projects. Following reports from News flash on cryptocurrenciessome of the projects on Polygon include DIMO Network, GEODNET, flekxyz, among others.