2024

Fortune

DeFi

AI and the emerging “NodeFi” market may become the most active verticals in the decentralized finance sector, according to a report by Ethereum blockchain analytics platform Nansen and lending protocol MetaStreet.
The report, <a data-ct-non-breakable="null" href="https://research.nansen.ai/articles/object-oriented-finance" rel="noopener noreferrer nofollow" target="null" text="null" title="null">published</a> on Oct. 14, makes the case that cryptocurrency markets are “evolving beyond their initial focus on ERC-20 tokens and DeFi,” and that these dominant technologies will eventually plateau.
Burgeoning and emergent blockchain-based verticals, such as distributed computing and <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/hut-8-gpu-service-program-ai-developers" rel="noopener noreferrer nofollow" target="null" text="null" title="null">GPU-as-a-service programs</a>, are expected to show relatively explosive growth as the generative AI industry matures.&nbsp;
<figure><img alt="NVidia, Nodes, DePIN" src="https://s3.cointelegraph.com/uploads/2024-10/01928cdc-67f3-72d8-9869-6ed17bd17343" title="">
 <figcaption style="text-align: center;">
 A chart showing predicted performance for DeFi verticals. Source: Nansen/MetaStreet
 </figcaption>
</figure>
<h2 id="depins-show-growth">DePINs show growth</h2>
The vertical with the greatest potential for growth, according to the report, is <a data-ct-non-breakable="null" href="https://cointelegraph.com/explained/decentralized-physical-infrastructure-network-depin-explained" rel="noopener noreferrer nofollow" target="null" text="null" title="null">decentralized physical infrastructure network</a> (DePIN) projects.
DePIN projects range from decentralized energy distribution to decentralized data storage. DePIN can also be used for distributed computing and GPU-as-a-service programs.&nbsp;
Citing research from Fortune Business Insights, the report indicates that the overall market for distributed graphical process units (GPUs), also called GPUs-as-a-service, was worth $3.2 billion in 2023.&nbsp;
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/blockchain-for-everyone-how-decentralized-solutions-can-foster-digital-inclusion" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Blockchain for everyone: How decentralized solutions can foster digital inclusion</a>
The primary use case for GPU-as-a-service clusters is to train artificial intelligence models, which would indicate that demand in 2024 and beyond is likely to increase.
Per the report:
<blockquote>
 “Overall, AI-related compute DePIN appears to be in a prime position to become the next major vertical, with a sizeable and fast-growing market, high yield potential, predictable asset prices, and comparatively low implementation complexity.”
</blockquote>
As Cointelegraph recently reported, even as leading firms could be <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/openai-losses-profit-projections-2029" rel="noopener noreferrer nofollow" target="null" text="null" title="null">years away from profitability</a>, the generative AI boom has led to massive investments throughout the entire AI technology stack.&nbsp;
While there’s no guarantee that blockchain-based projects will garner the lion’s share of investments, the areas of intersection between AI and blockchain appear to have the most long-term potential, according to the report.&nbsp;
It added that the NodeFi vertical — an incentivization market for node operators — may also take off. Still, unlike the rising tide that is the AI sector, NodeFi’s viability is project dependent.&nbsp;
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/10-crypto-theories-that-missed-as-badly-as-peter-todd-is-satoshi/" rel="noopener noreferrer nofollow" target="null" text="null" title="null">10 crypto theories that missed as badly as ‘Peter Todd is Satoshi’</a>

Nansen ‘Beyond DeFi’ report highlights $3.2B market for AI services

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