Pro
Challenges in DePIN and the Path Forward for 2025
Key Insights
- Despite significant growth in the past year, DePIN faces various challenges that may limit its growth potential.
- DePIN must expand its talent pool. Strategies to do so include providing educational resources for potential founders, increasing capital availability for DePIN, and capitalizing on DePIN’s growth to spread awareness.
- DePINs face distinct challenges based on their level of physicality (P). High-P protocols struggle with scaling issues, while Low-P protocols must address challenges related to differentiation.
- DePINs require access to traditional financing (TradFi), particularly credit, necessitating a well-developed DePIN underwriting model.
Introduction
2024 was DePIN’s breakout year.
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Dylan is a Sr. Enterprise Research Analyst focusing on DePIN, DeFi, AI, and RWAs. He previously worked as a digital assets investment analyst at T. Rowe Price and in venture capital. Dylan is a graduate of Princeton University and co-founded the Princeton Blockchain Club.
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