Non Cult Crypto News

Non Cult Crypto News

in ,

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

The report indicated that DePIN and NodeFi may be the most profitable verticals for decentralized finance going forward.

COINTELEGRAPH IN YOUR SOCIAL FEED

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, published 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 GPU-as-a-service programs, are expected to show relatively explosive growth as the generative AI industry matures. 

A chart showing predicted performance for DeFi verticals. Source: Nansen/MetaStreet

DePINs show growth

The vertical with the greatest potential for growth, according to the report, is decentralized physical infrastructure network (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. 

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. 

Related: Blockchain for everyone: How decentralized solutions can foster digital inclusion

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:

“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.”

As Cointelegraph recently reported, even as leading firms could be years away from profitability, the generative AI boom has led to massive investments throughout the entire AI technology stack. 

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. 

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. 

Magazine: 10 crypto theories that missed as badly as ‘Peter Todd is Satoshi’

This article first appeared at Cointelegraph.com News

What do you think?

Written by Outside Source

BTC price focus shifts to $69K as Bitcoin challenges 8-month downtrend

Ethena flips crucial resistance as crypto fear and greed index rises

Back to Top

Ad Blocker Detected!

We've detected an Ad Blocker on your system. Please consider disabling it for Non Cult Crypto News.

How to disable? Refresh

Log In

Or with username:

Forgot password?

Don't have an account? Register

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

To use social login you have to agree with the storage and handling of your data by this website.

Add to Collection

No Collections

Here you'll find all collections you've created before.