Moody’s Touts DePIN as Promising Approach to Infrastructure

Moody’s Ratings, one of the “Big 3” credit rating agencies alongside Fitch and Standard & Poor’s (S&P), has published a report labeling blockchain and digital tokens as a potential “future of physical infrastructure,” otherwise known as decentralized physical infrastructure, or DePIN.

The report centers around blockchain’s ability to promote physical infrastructure network efficiency and scalability while remaining cost-friendly. While the firm considers DePIN to have high potential, there are some caveats.

A lack of regulatory clarity and security concerns are top-of-mind for the firm, and it cited the need for significant investments in “infrastructures and skills” to further the industry's progress.

DePIN marries decentralized blockchain networks with offchain infrastructure such as file and data storage, computational power, and telecommunications. With its “real world use case,” the sector has evolved into one of 2024’s hottest narratives.

The enthusiasm surrounding DePIN is backed up by a recent research report from market maker Wintermute.

According to the report, $8.6 billion has been raised via private funding in 2024, which is an 11% increase compared to the same period in 2023. Infrastructure commanded the lion’s share of the capital, with “Web3” being the second largest sector, which includes DePIN and AI-adjacent investments.

Wintermute reports that the private investor side of the market is largely focused on DePIN at the moment, “driven by continued advancements and positive narratives around artificial intelligence.”

Tokens related to DePIN, such as Helium’s HNT and Render’s RNDR, are both up multiples on the year. HNT is up 350% since September 2023, and RNDR is up 190% in the same time period, while other tokens, including majors like ETH, are only up about 38%.