In an evolving landscape of decentralized physical infrastructure networks (DePIN), the sector has witnessed a notable influx of capital, amounting to $150 million in the first quarter of 2025. The market is projected to burgeon into a substantial $3.5 trillion by 2028. However, the most compelling shift is not merely in financial investment but in the geographical focus of DePIN operations, with emerging markets in the Middle East, Southeast Asia, and South America taking the lead, eclipsing traditional hubs like Silicon Valley.
DePIN dynamics are increasingly favoring regions where infrastructure gaps exist alongside progressive regulations for Web3. These networks thrive in areas where traditional infrastructures have struggled, prompting populations to seek community-driven solutions. Investors and developers within the DePIN space are advised to pivot their attention towards these burgeoning markets outside the United States.
Historically, Silicon Valley’s success in Web2 was propelled by pivotal regulations such as Section 230 and the Digital Millennium Copyright Act. In the realm of Web3, however, the U.S. has only recently begun to adopt supportive measures, exemplified by the introduction of the GENIUS Act and the White House’s July Digital Assets Report, which marked the federal government’s initial acknowledgment of the value derived from DePIN.
Contrastingly, various international jurisdictions have already established frameworks that foster DePIN growth. For instance, Dubai has initiated the Virtual Assets Regulatory Authority (VARA) to create specific sandboxes for Web3 projects. Similarly, Singapore’s Monetary Authority (MAS) is taking active steps to support the tokenization of real-world assets through initiatives like Project Guardian. The regulatory sandbox for fintech further delineates the bounds for blockchain experimentation, aiding in the growth of the sector.
In South Korea, major telecom player LG U+ has been piloting a blockchain-based cross-border payment system since 2018, a venture that would likely face extensive delays under U.S. Federal Communications Commission regulations. The country has experienced a 15% yearly growth in blockchain service providers in 2023, underpinning its leadership in this sphere.
Moreover, Vietnam’s national blockchain strategy, rolled out in late 2024, provides essential legal clarity for applying blockchain technologies across various sectors such as finance and logistics. The government’s ongoing pilots of the NDAChain platform aim to revolutionize e-government services and bolster its digital economy through decentralized citizen identification.
While the Bay Area still commands a significant share—24%—of the global venture capital pie, other regions are gaining momentum. The UAE ranks third on the Henley Crypto Adoption Index, which evaluates the integration of cryptocurrency and blockchain technology across nations. With predictions of up to 7,100 new millionaires settling in Dubai by 2025, the Gulf’s growing expat community is characterized by high disposable incomes and a favorable outlook on emerging technologies, including DePIN.
Abu Dhabi’s $500 million Digital Energy Infrastructure Fund specifically targets investments in blockchain, AI, and other computing applications, asserting the UAE’s influence as a leader in the Web3 arena. Singapore’s sovereign wealth funds, such as Temasek and the Government of Singapore Investment Corporation (GIC), are also focusing investments on blockchain infrastructure projects beyond established tech hubs, securing significant financial commitments towards companies in Hong Kong that are devoted to decentralization and blockchain.
As traditional tech hubs like New York and Silicon Valley face competition, new deployment efforts show that the real growth in DePIN is stretching across borders. One illustrative case is Helium, which has expanded its network of decentralized wireless hotspots across Southeast Asia and South America, even as the majority remain in the U.S. Pilot programs in Mexico have showcased the potential of DePIN to address real connectivity issues, with significant daily data usage reported by subscribers to local telecom, Movistar.
The insights for DePIN builders and entrepreneurs are clear: the focus should be on designing infrastructures that cater to users who genuinely require those solutions, rather than appealing to niche interested parties in places like Palo Alto. Investors should aim to identify opportunities in markets with clear regulatory habitats and growing user bases. Policymakers are encouraged to establish frameworks that accommodate innovative blockchain initiatives rather than confining them to traditional regulatory categories.
As Southeast Asia, the UAE, and Vietnam lay the foundation for the future of DePIN, the potential implications for Web3 companies over the next five to ten years are substantial, signaling a shift in the contours of digital infrastructure and the opportunities that lie beyond established tech epicenters.
