What Is XYO Crypto and Where Does It Fit Into The DePIN Narrative?

XYO crypto has managed to gain some traction at the end of 2024 following a truly dreadful year of price action. The Decentralized Physical Infrastructure Network (DePIN) project, which was initially deployed on Ethereum and has since bridged across to other chains, has generally flown under the radar due to its limited market capitalization, but in recent weeks, the crypto community has started to take notice.

According to the official website, XYO is a DePIN-focused project. Unlike many other comparable cryptos, the team is not interested in trying to solve a bunch of different problems to provide a comprehensive ecosystem for DeFi; instead, it's focused fully on DePIN.

The primary objective of DePIN is to bridge the gap between the real world and the blockchain, and XYO aims to contribute to this process through a series of features that offer a data bridge for individuals and institutions.

"Our goal is to make digital sovereignty accessible to everyone, ensuring that the data you create remains fully under your control," states the official XYO website.

In February, the XYO Layer-1 blockchain was launched. The announcement sent the XYO crypto surging by over 45%. Since the surge, most of the gains have been given up, leaving crypto traders wondering if it was just a momentary price increase or the start of a long-term bull run.

This article will analyze the XYO project, its DePIN potential, and compare it to BlockDAG, which arguably offers a better investment option for users due to its speed, consensus mechanisms, and crypto mining ecosystem.

XYO was launched back in 2018, prior to the 2021 bull run and well before DePIN became a widely discussed narrative in the crypto industry. The project set out to bring utility to crypto, which at the time was primarily focused on speculation and Bitcoin's "digital gold" position.

DePIN in crypto aims to shake up global logistics, including shipping.

DePIN, or Decentralized Physical Infrastructure Networks, refers to blockchain-based networks that use real-world hardware devices to collect and validate data. 

For example, a logistics company could leverage DePIN to track shipments in real time, ensuring transparency and security throughout the supply chain. This would allow for tamper-proof data recording and immutability.

The DePIN narrative has been growing in relevance, especially in the past couple of years, but is yet to fully live up to the hype. This is partly due to the lack of a truly effective bridge for data between the real world and the blockchain.

The XYO crypto project offers four specific tools designed to meet its objective of becoming a DePIN leader:

• XYO Ecosystem: A complex protocol and node-based DePIN technology that can be integrated into any Web3 or Web2 product, allowing for seamless data integration.
• COIN: A mobile app that rewards users for contributing data to XYO's decentralized infrastructure, incentivizing participation.
• xyOS: The operating system that powers XYO's decentralized network of nodes, ensuring efficient data processing and network stability.
• xNS: A blockchain-based name system that allows users to claim unique, decentralized identities, enhancing data ownership and control.

In February, XYO launched its own Layer-1 chain, known as the XYO Layer One blockchain, which is designed to cater to data-intensive sectors such as Artificial Intelligence and Decentralized Physical Infrastructure Networks (DePIN).

Its specialized architecture allows for the concurrent operation of multiple blockchains, all while utilizing a single, shared ledger. This design ensures that large volumes of data can be processed efficiently, maintaining both accuracy and the ability to scale as needed, which is crucial for DePIN applications.

It is worth noting that currently, most of the XYO features are merely theoretical as they haven't been fully implemented in the real world. 

XYO is the project's native cryptocurrency. Initially, it was launched as an Ethereum token but has since been bridged across to several blockchains. In late 2024, XYO was bridged over to Solana, and soon after, the Layer-1 network was launched, adding another compatible chain to the XYO ecosystem.

The XYO crypto price chart is turbulent, to say the least. Source: CoinGecko

XYO has a maximum supply of 13.93 billion tokens, of which almost 100% is already in circulation, according to CoinMarketCap. This means new supply shocks are unlikely. The token is primarily used to incentivize data collection and corroboration on the network.

XYO went live in 2018 and traded flat for several years before being swept up in the 2021 bull market. During the bull market, it reached an all-time high of $0.08139, resulting in a market cap of $890 million.

A massive crash followed the 2021 bull run, and by late 2022, it was almost down 100% from its high.

XYO showed no signs of recovery, even during the 2024 bull run. It was the Layer-1 blockchain announcement that finally gave it a boost, pushing its market capitalization from under $100 million to just under $500 million.

Since the Layer-1 announcement surge, XYO has given up most of its gains and currently trades for around $0.01147, with a market capitalization of $145 million, which is around 85% below its all-time high.

The XYO project has been on a troubled journey. Following the launch in 2018, it failed to gain traction. In 2021, thanks partly to the broader market rally, the XYO token hit its all-time high and almost reached a $1 billion market capitalization before being hammered by the bear market.

The token appeared to be completely dead in 2022 and 2023, but the recent launch of a native Layer-1 blockchain has given it some legs. That being said, the recent rally has already given up almost all of its gains, and XYO is in danger of trading at over 90% below its all-time high.

As XYO has been fighting to stay alive and attract new investors, the BlockDAG presale has gone from strength to strength. Over $200 million has been raised through the BDAG presale, and major global brands are now partnering with the project, including the Italian football giant Inter Milan.

Arguably, BlockDAG is simply pushing smaller projects like XYO aside by offering a comprehensive blockchain ecosystem. The speed, security, and decentralization of the BlockDAG network mean that developers will be able to use it for DePIN as well as other use features, such as building and deploying DEXs and NFT collections.

In addition, BDAG benefits from its tiered system and crypto profit calculator, which means that investors can calculate exactly how much their investment will be worth post-TGE, and crypto miners can estimate how much their mining outfits will generate in a given period.