Opinion by: Yanal M. Hammouda, head of market expansion at Wingbit
The decentralized physical infrastructure network (DePIN) sector attracted $150 million in funding during Q1 2025, with an anticipated market size of $3.5 trillion by 2028. However, the most noteworthy aspect is not just the capital raised but the geographical focus of these networks.
Emerging regions like the Middle East, Southeast Asia, and South America, rather than Silicon Valley, are paving the way for DePIN adoption.
Market dynamics in DePIN and blockchain favor areas with infrastructure gaps and forward-thinking Web3 regulations. DePIN clusters prosper where traditional infrastructure has fallen short, leading communities to seek local solutions. Investors and creators in DePIN should look for these conditions outside the US.
DePIN sandboxes
Silicon Valley’s past success in Web2 was bolstered by pivotal regulations like Section 230 and the Digital Millennium Copyright Act. In Web3, the US has just rolled out the GENIUS Act this year, and the White House’s July Digital Assets Report marked the first federal recognition of the value from DePIN. While the US is just starting its DePIN journey, flourishing Web3 ecosystems in other regions confirm that success depends on regulatory clarity.
Dubai’s Virtual Assets Regulatory Authority (VARA), created in 2022, offers specific sandboxes for Web3 infrastructure initiatives. The Monetary Authority of Singapore (MAS) actively promotes the tokenization of real-world assets through efforts such as Project Guardian and the Singapore Blockchain Innovation Programme.
Additionally, the country’s fintech regulatory sandbox clearly delineates the boundaries for blockchain experimentation.
In South Korea, telecom giant LG U+ has been testing a blockchain-based cross-border payment system since 2018—an endeavor that would have taken years to approve under US Federal Communications Commission regulations. The country noted a 15% year-on-year increase in blockchain service providers in 2023.
Related: Southeast Asia to drive DePIN growth
Vietnam’s national blockchain strategy, which launched in late 2024, offers clear legal guidance for blockchain use in finance, logistics, agriculture, and data management. The government is currently piloting the NDAChain platform—a national blockchain aimed at enhancing e-government and the digital economy through decentralized citizen identification.
Deeper pockets for DePIN projects
Although the Bay Area still accounted for 24% of the $368 billion in global venture capital funding in 2024, substantial blockchain capital is now flowing elsewhere.
The UAE ranked third (with the US in fourth place) on the Henley Crypto Adoption Index, which evaluates cryptocurrency and blockchain integration across nations. With an influx of up to 7,100 new millionaires expected in Dubai by 2025, the Gulf’s expatriate community, known for high disposable incomes and favorable views on 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 emerging as a leader in Web3 by backing DePIN applications in areas where traditional infrastructure has not kept pace with demand.
Singapore’s state-owned funds, Temasek and the Government of Singapore Investment Corporation (GIC), have shifted their emphasis to 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.
Meanwhile, Temasek led a $110-million funding round for Hong Kong’s Animoca Brands, Asia’s leading blockchain investment firm. Sovereign wealth funds are prioritizing a future built on digital infrastructure.
Building necessities over luxuries
New York and Silicon Valley were once regarded as the only locations for scaling Web3 products meaningfully. That’s no longer the case.
While most of Helium’s 380,000 decentralized wireless hotspots are still in the US, new deployments are rapidly enhancing user coverage in Southeast Asia and South America.
Pilot tests in Mexico showed that subscribers to the telecommunications company Movistar used an average of 390 megabytes, or seven hours of web browsing, daily on the Helium network, demonstrating how DePIN can address real connectivity issues.
The message to DePIN builders and entrepreneurs is straightforward: design for users who need your infrastructure, not those who might find it interesting in a Palo Alto coffee shop. For investors, the opportunity lies in pinpointing projects that tackle real challenges in markets with regulatory transparency and growing adoption. Policymakers can facilitate this through frameworks that welcome new blockchain projects rather than forcing them into outdated categories.
Asian companies spearheaded the mobile revolution of the 2010s, responding to losing ground in desktop technology and creating giants like WeChat, Gojeck, and Kakao, making those markets nearly impenetrable for Silicon Valley. Now, regions like the UAE, Vietnam, and Singapore are forging a similar lead in this market for the long term, and Web3 companies should consider the implications of this over the next five to ten years.
Opinion by: Yanal M. Hammouda, head of market expansion at Wingbit.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
