This year, the crypto market has seen a revival of older tokens as utility-based narratives gained renewed traction. Despite this momentum, DePIN has struggled to keep pace, slipping out of the spotlight.
BeInCrypto spoke with several experts to understand why one of crypto’s most fundamentally useful sectors still can’t capture sustained market attention, and what might come next for it.
Understanding DePIN
DePIN, short for Decentralized Physical Infrastructure Networks, refers to blockchain-based systems that coordinate, fund, and operate real-world infrastructure through decentralized incentives.
Instead of relying on traditional companies to build networks like wireless coverage, storage, sensors, or energy grids, DePIN distributes the work across individuals and small operators who contribute hardware and earn tokens in return.
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This model reduces upfront costs, expands global access, and unlocks previously difficult-to-scale infrastructure. By aligning incentives with actual demand, DePIN aims to build more resilient and efficient systems.
Why is DePIN Still Struggling in 2025?
Nonetheless, the space has continued to face challenges. According to Artemis data, it ranks among the top 10 worst-performing sectors this year. The DePIN market has declined by over 74% in 2025.
But why is this happening? Sami Kassab, Managing Partner at Unsupervised Capital, told BeInCrypto that the weakness across the altcoin market has naturally affected DePIN as well.
According to him, macro conditions explain part of the sector’s slowdown, but not all of it. The deeper issue, he said, is that there has not been a “breakout DePIN yet.”
“The other side of the coin is that DePINs are building real infrastructure and real businesses. That takes a long time, which the crypto market isn’t wired for. Investors are used to fast-moving narratives and overnight successes,” Kassab added.
Leo Fan, Co-Founder of Cysic, revealed that DePIN’s main obstacle is the mismatch between infrastructure build cycles and the crypto market’s short attention span. While non-fungible tokens (NFTs), meme coins, and major altcoins thrive on culture, identity, and hype, DePIN functions as an infrastructure layer that most users struggle to connect with emotionally.
Its value grows quietly through hardware deployments and real compute capacity — progress that isn’t immediately visible or profitable. Fan noted that,
“Most investors still view token value as the only metric for success, which does not apply to infrastructure systems. DePIN networks create tangible value through services like compute power and data delivery. Their performance is measured by usage, speed and reliability, rather than short-term volatility. Because this model does not mirror traditional crypto dynamics, it remains outside the comfort zone of most market participants.”
Maria Carola, CEO of StealthEx, shared a similar outlook. She stated that most investors remain drawn to assets they can quickly trade rather than sectors that require deeper understanding.
“Within crypto cycles, speculation will always dominate, and DePIN’s complex approach doesn’t help its position either. Most of the investors never fully grasp how token incentives drive data collection, storage, or connectivity, and how that translates into revenue. If we’re talking about traditional markets, the infrastructure side is always the least glamorous, yet it’s still the most essential. DePIN is the crypto’s version of that,” she mentioned to BeInCrypto.
However, Vinayak Kurup, Investment and Research Partner at Escape Velocity Crypto (EV3), pointed out that DePIN’s slowdown isn’t just about market perception — it’s the difficulty of building real-world networks that require hardware, manufacturing, and physical deployment.
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“They are often compared directly to existing large-scale network providers; the challenge for DePIN operators is to provide a comparably reliable and simple user-experience for a fraction of the capital while operating within sectors where user stickiness is high. Combined, these factors dampen the DePIN mindshare,” Kurup highlighted.
Usage Surges, Prices Sink: Experts Explain DePIN’s Widening Fundamentals Gap
Despite the sector’s underperformance, usage metrics are painting a different picture. Fees surged to a record high in October even as the broader market continued to decline.
This suggests a growing disconnect between falling token prices and rising real-world usage. According to Kassab,
“Fees are trending upward, but they’re still small compared to the value of emissions spent since inception or the revenue of the incumbents these networks aim to disrupt.”
Carola said this disconnect is typical of emerging infrastructure sectors, where fundamentals can strengthen long before prices. She explained that sentiment often swings independently of utility: investors may rotate out of risk during uncertain markets, even while real activity continues to grow.
“Rising fees and network activity during a down market instead show that real users continue to find value in these services, whether for storage or computing. In the long term, these are the metrics that will matter more than short-term token performance, once revenues eventually pour in with usage, just like in the early days of the internet,” she remarked.
Fan also emphasized that speculation and actual usage have clearly decoupled. He said the price action largely reflects investor mood — what he called “Wall Street sentiment” — while fee growth captures genuine demand for the networks. When fees increase in a bearish environment, it signals that DePIN’s core services are gaining traction regardless of market cycles.
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“Such divergence is common in early infrastructure cycles. The networks are being used more, but the market has not yet priced that in because investors still treat DePIN tokens as speculative assets,” the executive disclosed to BeInCrypto.
Could DePIN Be the Next Sector to Break Out After Privacy Coins?
It’s clear that DePIN is seeing real market demand, which raises an important question: could the sector finally experience a breakout similar to the one privacy coins saw this year?
Carola believes the answer leans toward yes. She noted that crypto cycles tend to shift from narrative-driven speculation to phases where utility and real adoption take center stage.
According to her, if privacy coins reflected a push toward digital sovereignty this year, DePIN may be positioned for a similar rise — one grounded in measurable output. She commented,
“DePIN could have tangible productivity by next year. Whether for physical infrastructure or decentralized data, network builders are laying the groundwork, expecting and preparing for when the market starts valuing cash flow and adoption over memes. When that shift happens, DePIN will be the sector that can show a measurable, real-world traction.”
Fan echoed this outlook. He suggested that once the market rotates back toward sectors with clear utility, DePIN stands out as a natural beneficiary. He pointed to concrete on-chain indicators that are already trending upward.
“Network fees are rising, node participation is expanding, and operational performance continues to strengthen. Should these data points become standard reference metrics, DePIN might be recognised as the quiet builder of trading infrastructure,” he forecasted.
Kurup offered a broader perspective. While acknowledging the uncertainty of broader market conditions, he said investor preferences are gradually shifting toward projects with recurring cash flows and strong fundamentals — an environment that plays directly to DePIN’s strengths.
“But it’s also likely a tailwind from other shifts in the market. 2026 will be the year of DePIN’s resurgence,” he declared.
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Why Enterprises Could Unlock DePIN’s Next Phase
Experts also pointed to several catalysts that could spark a major shift for the sector, with both Carola and Fan agreeing that enterprise adoption may be the key driver.
“Enterprise adoption is the strongest driver. Regulation and investor sentiment will follow proof of adoption. Once enterprises begin integrating decentralised infrastructure into existing systems, confidence in the model will rise. DePIN’s credibility depends on measurable performance, and enterprise engagement provides exactly that,” the Cysic co-founder explained.
Kurup stressed that multiple factors will likely converge to drive a turnaround. Investor psychology remains critical, he said, but growing visibility and mainstream presence could accelerate that shift.
“Now, I see Helium advertising their free phone plan in the New York subways– compared to their Web2 counterparts, it’s only recently that DePINs have been well capitalized enough to enter the mainstream,” Kurup shared.
What Role Will DePIN Play in Crypto’s Future?
As optimism for the sector’s trajectory remains strong, it’s still worth wondering where DePIN truly fits in the broader crypto ecosystem. Will DePIN remain a niche bet, or is it poised to become crypto’s bridge to the real economy once markets catch up?
The StealthEx CEO argued that DePIN already functions as that bridge — the market just hasn’t fully recognized it yet. As blockchain shifts from abstract financial experimentation to practical, real-world use cases, she believes DePIN will anchor many of those transitions.
“Whether it’s powering smart cities, distributed AI compute, or IoT networks, these systems make crypto tangible. So while it might feel like a limited niche today, it’s already foundational. When people finally start interacting with decentralized infrastructures without realizing it’s crypto, it is when DePIN will have truly won,” Carola conveyed to BeInCrypto.
Fan pointed to developments in 2025, especially the rise of real-world asset (RWA) tokenization and increasing institutional adoption, as signs that the real economy already sees value in decentralized systems. In his view, DePIN is well-positioned to become the infrastructure layer connecting DeFi to enterprise use cases.
“I do believe that DePIN will be one of crypto’s bridges into TradFi as the sector matures, serving as the infrastructure layer that anchors DeFi in a real-world capacity. As institutions look for verifiable, cost-efficient infrastructure to support secure settlement, DePIN will move from a niche experiment to the fundamental layer of digital finance.”
Whether the market realizes it now or years from now, the experts agree on one point: DePIN’s long-term value lies not in speculation, but in becoming the invisible infrastructure powering crypto’s real-world impact.