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

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

As a seasoned analyst with over two decades of experience in tech and finance, I find myself intrigued by the insights presented in the recent report by Nansen and MetaStreet. The convergence of AI and the decentralized finance sector, particularly the NodeFi market, is a development that warrants careful attention.


According to a report from Ethereum blockchain analysis platform Nansen and lending protocol MetaStreet, it’s expected that Artificial Intelligence (AI) and the rapidly growing “NodeFi” market may see the most activity within the decentralized finance industry.

On October 14th, a published report argues that the sphere of cryptocurrencies is broadening its scope beyond Ethereum-based ERC-20 tokens and Decentralized Finance (DeFi), suggesting that these current leading technologies may reach a peak at some point in the future.

As a crypto investor, I’m excited about the rapidly expanding blockchain sectors like distributed computing and GPU services. These areas are predicted to explode in growth as the artificial intelligence industry continues to evolve, providing promising opportunities for investment.

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

DePINs show growth

According to the report, the sector with the most promising expansion prospects is that of Decentralized Physical Infrastructure Network (DePIN) projects.

As a researcher delving into the realm of Decentralized Platforms for Integrated Networks (DePIN), I explore various applications that span from distributing energy resources to storing data in a decentralized manner. Furthermore, this technology offers potential for distributed computing and GPU-on-demand services.

According to a report by Fortune Business Insights, it’s estimated that the total value of services offering distributed Graphics Processing Units (GPUs) reached approximately $3.2 billion in the year 2023. These GPUs are often referred to as GPU-as-a-service.

One simple rephrasing could be: Clusters offering GPU-on-demand are primarily utilized for training AI models, suggesting a probable rise in demand from 2024 onward due to growing interest in artificial intelligence.

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.”

In my explorations as a researcher, I’ve noticed an intriguing trend: despite top-tier companies potentially being years from turning a profit, the surge in generative AI has sparked substantial investment across the entire spectrum of AI technology.

According to the report, while it’s not certain that blockchain-focused ventures will receive the majority of investments, the sectors where AI and blockchain overlap seem to hold the greatest promise for long-term success.

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. 

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2024-10-15 18:11