Solana [SOL] Set to Lead the DePIN (Decentralized Public Infrastructure Networks) Sector After Dominating the Memecoin Trading Segment

One of the leading decentralized computer networks, Render [RNDR], recorded a remarkable 66% growth in node operators since migrating from Ethereum [ETH] to Solana [SOL] last November.

Solana [SOL] has been at the forefront of several Web3 narratives. After dominating the memecoin trading segment, SOL is now set to lead the DePIN (Decentralized Public Infrastructure Networks) sector.

One of the leading decentralized computer networks, Render [RNDR], recorded a remarkable 66% growth in node operators since migrating from Ethereum [ETH] to Solana last November.

According to a report by crypto analytics provider Flipside, the growth isn’t restricted to Render but was evident across the Solana DePIN sector in the first half of 2024 (H1).

Solana’s speed, scalability, and low cost are the main reasons behind Render’s decision to join the network. New DePIN entrants, like io.net, also cited the same factors in choosing Solana.

Reinforcing Solana’s capacity, Garrison Yang, chief strategy at io.net, told Flipside that,

“With advantages in retail liquidity, speed, scalability, cost, and mindshare, Solana has become a natural choice for many web3 projects, including the DePIN category.”

Solana DePIN sector state in H1 2024

The Flipside report noted that four major DePIN sub-categories have matured within Solana – compute, connectivity, data/sensor, and storage networks.

Render led the decentralized computing segment, hitting a record high of 1920 node operators in January 2024, a 66% increase post-Solana migration.

Source: Flipside

Node operator rewards also spiked in January, with a 34% average in the first half of 2024.

Render offers a Web 3 alternative to AWS or Google Cloud through its peer-to-peer compute power (GPU) marketplace. According to the report, Render pivoted to AI/Machine Learning and could be an outlier in the segment if the narrative extends.

“As global GPU demand continues to outstrip supply, investment in, and adoption of, decentralized compute solutions will likely outpace other DePIN sectors,” the report added.

The report highlighted io.net and Nosana as the latest projects in the compute segment that are worth tracking.

Solana’s next hottest DePIN category was connectivity, and the leading project was the Helium Network, which saw a surge in subscribers. Wife Dabba and Pollen Mobile are new projects in this category.

The decentralized sensor and data storage segments are the third and fourth largest, respectively. These categories are largely dominated by Hivemapper (a Google Street View rival) and Shdwdrive, respectively.

In total, the Solana DePIN ecosystem has over 25 projects, led by the three well-known ones: Render, Hivemapper, and Helium.

On the performance front, the DePIN narrative was in the top five after DeFi and posted 85% in Q1, according to a Coingecko report.

The best performer was the memecoin sector, which Solana solanaently dominated. It remains to be seen how the DePIN narrative will play out at the end of Q2.