Exponential Growth
The Crypto market cap is currently around $3.5 trillion and is likely to expand significantly in the coming months. Predictions coming out of Messari expect DePIN to grow to a market cap of $3.5 trillion by 2028. Currently, the DePIN market cap is valued at $39 billion according to CoinGecko. That is almost a 100X return over the next 3 to 4 years. It’s also important to note that this is not a unilateral growth.
This means a handful of projects will account for much of that market cap. The result is that many projects within the DePIN space will experience much more significant returns than 100X in the next few years. As I mentioned in recent articles, many of these projects are yet to go to market regarding a token and the assigned market cap valuation.
As these projects ship to market, the DePIN sector will experience sporadic moments of growth regarding market cap and subsequently, market dominance. It is important to remember the Peaq Network in particular. Many of the projects built on Peaq are yet to launch a token. In other words, there is a lot of unrecorded value in PEAQ as a token that is yet to be accredited. The recent correction was a prime opportunity to load up on PEAQ.
DePIN Portfolio Construction
The beauty of DePIN is that tokens can be mined at very little to no cost. This should be the primary strategy of any shrewd DePIN investor. Multiple devices, projects, and referral networks are imperative if this strategy is to be effective. You can’t just download one dApp on your phone and expect to build a DePIN portfolio. Foolishness in crypto is the same as foolishness anywhere else; it is unproductive.
You can’t exercise stupidity and expect a favorable outcome. Building anything of value within this space is just like anything else. It requires structural planning, dedication, and commitment. Please don’t do it otherwise. Many individuals have approached me for help regarding Crypto and some have been rejected. I can see they don’t have what is required.
They will make a mess due to foolishness and a lack of the abovementioned attributes. DePIN investors need to be dedicated to building a network of nodes. Furthermore, they need to diversify into blue chip DePIN projects like PEAQ, RENDER, and FIL. Furthermore, they need some exposure to micro-caps within the sector. This should be relative to one’s risk appetite.
If the passive income arm of your DePIN portfolio is significant enough, deploying capital can be minimal. It’s important to note that many of the tokens being mined now and in the future are in many cases, micro-caps. Another important aspect to remember is that running a DeNet Watcher Node will eventually provide the opportunity to earn PEAQ tokens. This is also true of Silencio.
Final Thoughts
In summary, build a network of DePIN nodes. Secondly, allocate a little capital to blue chips and well-established micro-caps within the sector. Establish a disciplined strategy regarding ongoing accumulation and dollar-cost averaging. Regarding your network of nodes, don’t become complacent. Continue to expand and monitor your expansion to ensure you are growing. Thanks for stopping by, I will see you next time!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.
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