Framework Ventures Shifts Focus to Energy Sector and DePIN Opportunities
A battle for energy access has intensified among tech companies, driven by increased demand due to the AI arms race. Companies are reportedly facing years-long waits to connect to local power grids.
With major players dominating the market, energy presents opportunities for disruption, potentially through Decentralized Physical Infrastructure Networks (DePIN). Framework Ventures co-founder Michael Anderson highlighted that energy has been a significant focus for the firm recently.
Anderson noted that while many narratives in crypto align with popular consensus—such as memecoins and ETFs—energy remains relatively non-consensus and aligns well with DePIN, which has demonstrated its viability. He explained that DePIN builds a network for supply and demand, but historically, the demand side has not met expectations.
Peer-to-peer energy startups have experienced cycles of growth and decline, often outside the DePIN framework. Powerledger is notable for allowing solar panel owners to sell generated energy back to the grid. It reached a peak market cap of approximately $680 million in 2018 but currently trades 80% lower.
The energy market landscape has evolved significantly since then, suggesting that earlier projects like Powerledger may have been ahead of their time. Framework has invested in energy-focused crypto startups such as Glow, which incentivizes solar farm builders with USDC and GLW on Ethereum, and Daylight, backed by IoTeX, which aims to decentralize green energy through crypto rewards.
Anderson stated, “Energy is the most liquid, fragmented, and highly demanded ecosystem suitable for blockchain registration and is purpose-built for DePIN.” He anticipates a more pronounced transition of energy into the DePIN framework next year.