Solana
Solana
  • Solana (SOL)-based DePINs like Render and Helium recorded massive growth on key metrics in H1 2024.
  • New entrants have bolstered the Solana(SOL) DePIN ecosystem, highlighting the network’s strengths in speed, scalability, and cost.

Solana(SOL) has firmly positioned itself as a leader in the Decentralized Public Infrastructure Networks (DePIN) sector, with significant growth observed in the first half of 2024 (H1). This surge is notably driven by key players like Render and Helium, and the entry of new projects further strengthens Solana’s DePIN ecosystem.

Render, a decentralized computer network, has seen a phenomenal 66% increase in node operators since its migration from Ethereum to Solana(SOL) last November. This growth underscores the advantages that Solana offers, such as superior speed, scalability, and cost-efficiency. According to a report by Flipside, these benefits have attracted various DePIN projects, marking a promising trend for the network.

Garrison Yang, Chief Strategy Officer at io.net, highlighted Solana’s compelling features, stating, “With advantages in retail liquidity, speed, scalability, cost, and mindshare, Solana has become a natural choice for many web3 projects, including the DePIN category.”

State of the Solana (SOL) DePIN Sector in H1 2024

The Flipside report identifies four primary DePIN sub-categories within Solana: compute, connectivity, data/sensor, and storage networks. Render, leading the decentralized computing segment, reached a peak of 1920 node operators in January 2024, demonstrating a 66% increase post-migration.

Render’s Web 3 alternative to traditional cloud services like AWS and Google Cloud, leveraging its peer-to-peer GPU marketplace, is particularly notable. The report suggests that Render’s pivot to AI and Machine Learning positions it uniquely in the market, especially as global GPU demand continues to exceed supply.

Node operator rewards in January averaged a 34% increase, further highlighting the sector’s vitality. Additionally, io.net and Nosana have emerged as significant projects within the compute segment, promising further developments.

Connectivity and Emerging Segments

The Helium Network, a prominent player in the connectivity segment, has also shown impressive growth, marked by an increase in subscribers. New entrants like Wife Dabba and Pollen Mobile are expanding this category, contributing to Solana’s(SOL) growing ecosystem.

The decentralized sensor and data storage segments, although smaller, are gaining traction. Hivemapper, positioned as a competitor to Google Street View, dominates the sensor category, while Shdwdrive leads in data storage.

Looking Ahead

With over 25 projects in its DePIN ecosystem, Solana (SOL) is making significant strides in decentralized infrastructure. Render, Hivemapper, and Helium stand out as leaders, driving the narrative forward. According to Coingecko, the DePIN sector posted an impressive 85% growth in Q1 2024, ranking in the top five narratives alongside DeFi.

Solana’s dominance in the memecoin sector has already been established, and the performance of DePIN projects by the end of Q2 will be crucial in assessing the full potential of this burgeoning sector.

As Solana (SOL) continues to attract and nurture innovative DePIN projects, its position in the blockchain ecosystem seems poised for further strengthening, making it an exciting space to watch in 2024.

By Joadin Maina

Beyond the hype, I untangle the web3 revolution, guiding curious minds through the labyrinth of decentralized possibilities.