DePin Tokens Show Promise, Especially as the Market Tends to Perform Well in October

NAIROBI (CoinChapter.com)—DePin (Decentralized Physical Infrastructure Networks) tokens have emerged as one of the fastest-growing sectors in crypto. With their focus on decentralized services like storage, rendering, and streaming, DePin tokens have gained attention. But with October 2024 around the corner, investors may wonder if now is the right time to buy.

This year's September saw a surprising departure from its typical poor performance, with Bitcoin recording some of its strongest gains to close the month. Despite a slight dip as the month wound down, Bitcoin managed to achieve an impressive approximate gain of 9%. This is particularly noteworthy compared to the average 3.6% decline Bitcoin has seen over the past decade during the same month, according to data from CoinGlass.

In the decentralized physical infrastructure networks (DePin) sector, Render (RNDR) surged 31.0% over the last 30 days. Priced at $6.62, Render benefits from robust demand for decentralized GPU rendering services, with a market capitalization of approximately $2.6 billion.

Over the last 30 days, Filecoin (FIL) saw its value increase by 9.6%, reaching a market cap of over $2.3 billion, despite experiencing a slight 3.8% dip in the last 24 hours. Similarly, Theta Network (THETA) recorded an 18.5% surge this month, pushing its market cap to approximately $1.4 billion.

Additionally, Arweave (AR) and The Graph (GRT) have also shown impressive performances. While Arweave recorded a 7.0% increase, The Graph experienced a substantial 24.4% surge.

October is often referred to as “Uptober” due to its historically strong market showing. According to CoinGlass, the average October upside is nearly 23%, suggesting that Bitcoin could potentially reach new all-time highs from its current levels.

Crypto analyst Michaël van de Poppe also predicts a bullish quarter ahead. He suggests that altcoins could see substantial gains, ranging from 3-5x, while Bitcoin may break past its all-time high, paralleling trends seen with gold.

Interestingly, since 2013, October has only seen two losing months, with losses capped at just under 13%, adding to the positive outlook for both Bitcoin and DePin tokens.

As DePin tokens grow, they encounter challenges, particularly in verifying services. According to Dragonfly Capital’s Haseeb Qureshi, projects that leverage physical resources (PRNs) face scaling difficulties compared to those that focus on digital resources (DRNs).

However, it's important to note that not all projects face the same obstacles. For instance, DAWN, a decentralized broadband network, uses verification systems like Proof-of-Backhaul to maintain decentralization despite using physical resources. Other networks, such as Filecoin, rely on computational methods like zero-knowledge proofs to ensure trustless verification.

Despite these challenges, the DePin sector has grown 450% in the last year, showing strong investor interest. In fact, given October’s history of positive crypto trends, DePin tokens could be worth considering.