These two Solana initiatives are listed by Franklin Templeton as early “DePIN” winners

  • Two DePIN initiatives have been selected for observation by Franklin Templeton.
  • These two initiatives utilize the Solana blockchain.
  • The $26 billion cryptocurrency industry is referred to as DePIN.

Supporters of blockchain technology claim that it can disrupt more than just the financial markets; it can also decentralize the infrastructure that underpins internet-based services like computing, mapping, and wireless.

According to CoinGecko, the decentralized physical infrastructure network, or DePIN, industry is now worth $26 billion and is a nascent area of the cryptocurrency space. Many initiatives in this space promise to leverage blockchain technology to accomplish their goals.

Franklin Templeton announced two projects on Wednesday that are gaining momentum: Hivemapper and Helium.

Franklin Templeton stated in its study that while Hivemapper and Helium aren’t the two largest DePIN initiatives in terms of market value, they are both exhibiting early indications of producing successful products.

Similar to Google Maps, Hivemapper is a $133 million cryptocurrency mapping initiative situated in Solana, California, with the goal of offering more recent real-world mapping data than its centralized competitors.

For mapping roads, the initiative pays contributors with its native coin, HONEY.

The trillion-dollar asset manager pointed out that token incentives, rather than the services’ actual value, continue to determine these ventures’ success. With a stronger network impact for these projects, that might alter.

According to the paper, the DePIN projects might gain greater value from prospective clients as these network resources grow.

Tokenized incentives used in these initiatives are not without their detractors, though.

Prior to this, Chris Newhouse, a DeFi analyst at Cumberland Labs, questioned whether these programs really needed to reward users with their native tokens. He told DL News that many projects don’t match their economic incentives in a way that necessitates rewards in cryptocurrency tokens.

Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.

Author: Puskar Pande

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