Opinion by: Yanal M. Hammouda, head of market expansion at Wingbit
The decentralized physical infrastructure network (DePIN) sector attracted $150 million in capital during Q1 2025, with an anticipated market size of $3.5 trillion by 2028. However, the key aspect is not just the funding but the locations where these networks are developing.
Emerging markets such as the Middle East, Southeast Asia, and South America—rather than Silicon Valley—are leading the future of DePIN adoption.
The dynamics of DePIN and blockchain favor regions with infrastructure deficiencies and progressive Web3 regulations. DePIN clusters excel in areas where traditional infrastructure has faltered, compelling populations to seek community-driven solutions. Investors and builders in DePIN should focus on these market conditions outside of the US.
DePIN Sandboxes
Silicon Valley’s triumph in Web2 was supported by pivotal regulations like Section 230 and the Digital Millennium Copyright Act. In Web3, however, the US has only recently introduced the GENIUS Act, while the White House’s July Digital Assets Report marked the first federal recognition of the value generated from DePIN. Although the US is just embarking on its DePIN journey, flourishing Web3 ecosystems elsewhere highlight that their success is contingent on regulatory clarity.
Dubai’s Virtual Assets Regulatory Authority (VARA), established in 2022, creates specific sandboxes for Web3 infrastructure projects. The Monetary Authority of Singapore (MAS) actively supports tokenization of real-world assets through initiatives like Project Guardian and the Singapore Blockchain Innovation Programme.
Simultaneously, the country’s fintech regulatory sandbox clearly outlines the parameters for blockchain experimentation.
In South Korea, telecommunications giant LG U+ has been testing a blockchain-based cross-border payment system since 2018, a rollout that would have encountered years of approval processes under the US Federal Communications Commission’s rules. The country experienced a 15% year-on-year growth in the number of blockchain service providers in 2023.
Related: Southeast Asia to Drive DePIN Growth
Vietnam’s national blockchain strategy, initiated in late 2024, explicitly offers legal clarity for blockchain applications in sectors like finance, logistics, agriculture, and data management. The government is currently piloting its NDAChain platform, a national blockchain designed to enhance its e-government and digital economy through decentralized citizen identification.
Deeper Pockets for DePIN Projects
While the Bay Area captured 24% of the $368 billion in global venture capital funding in 2024, real blockchain capital is shifting elsewhere.
The UAE ranked third (the US is fourth) on the Henley Crypto Adoption Index, which evaluates cryptocurrency and blockchain integration across countries. With approximately 7,100 new millionaires expected to arrive in Dubai in 2025, the Gulf’s expatriate community—characterized by high disposable income and optimistic views toward emerging technologies like DePIN—continues to expand.
Abu Dhabi’s $500-million Digital Energy Infrastructure Fund specifically focuses on “blockchain, DePIN, AI, cloud, and other compute cluster applications” as part of its investment strategy. The UAE is positioning itself as a leader in the Web3 realm by directing resources toward DePIN applications in sectors where traditional infrastructure has been unable to meet demand.
Singapore’s state funds, Temasek and the Government of Singapore Investment Corporation (GIC), have shifted their investments toward blockchain infrastructure beyond traditional tech hubs. Recently, the GIC invested $70 million in Hong Kong-based BC Group, the parent company of crypto exchange OSL.
In comparison, Temasek led a $110-million funding round for Hong Kong-based Animoca Brands, Asia’s leading blockchain investment firm. Sovereign wealth funds are strategizing for a future founded on digital infrastructure.
Building Necessities Over Luxuries
New York and Silicon Valley once held prominence as the sole locations for scaling a Web3 product. That’s no longer the case.
Although most of Helium’s 380,000 decentralized wireless hotspots remain in the US, new deployments are rapidly enhancing user coverage in Southeast Asia and South America.
During Helium pilots in Mexico, subscribers of telecommunications company Movistar averaged 390 megabytes, or seven hours of web browsing, on the Helium network, demonstrating how DePIN can address real connectivity challenges.
The directive for DePIN builders and entrepreneurs is unmistakable: design for users who require your infrastructure rather than those who may find it intriguing in a Palo Alto coffee shop. For investors, the opportunity is in pinpointing projects that address real issues in markets characterized by regulatory clarity and growing adoption. Policymakers can support this by creating frameworks that accommodate new blockchain-based initiatives instead of attempting to fit them into existing, rigid categories.
Companies in Asia spurred the mobile revolution of the 2010s as a response to their lost lead in desktop technologies, giving rise to giants like WeChat, Gojek, and Kakao, which have made those markets nearly impossible for Silicon Valley to infiltrate. Countries such as the UAE, Vietnam, and Singapore are now establishing a comparable lead in this market for the long term, and Web3 companies should be mindful of the implications of this over the next five to ten years.
Opinion by: Yanal M. Hammouda, head of market expansion at Wingbit.
This article serves general informational purposes and is not intended as legal or investment advice. The views, thoughts, and opinions expressed here are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.
