Why DeSci is Attracting a Surge of Crypto Investment

In the past week, decentralized science (DeSci) has once again become a hot topic in the crypto space. Following Binance Labs’ announcement of its investment in BIO Protocol, tokens in the DeSci sector such as VITA, GROW, and RSC have seen significant price surges.

Even amidst broader market corrections, these tokens have demonstrated resilience. Meanwhile, previously overlooked projects like the BIO Genesis initiative have quickly sold out, and the experimental platform Pump.science has seen a revival. It seems that much of the crypto capital is now flowing into DeSci.

A Revival of Experimental Platforms

Meme tokens have contributed significantly to this renewed enthusiasm. On Pump.science, a meme token issuance platform created by Molecule DAO, tokens like RIF and URO, representing the compounds rifamycin and urolithin respectively, have soared by 20x in just two days. Initially launched with little fanfare, these tokens hovered around a modest $150,000 market cap. However, recent activity has pushed their combined market value to nearly $3 million.

Pump.science allows users to purchase meme tokens representing drugs, enabling participation in predictions about drug efficacy and the trading of experimental data. This platform, launched during the Token 2049 conference, owes its revival to Binance’s recent moves in the DeSci sector.

On November 8, Binance Labs announced its investment in BIO Protocol, marking its first major step into DeSci. Shortly thereafter, Binance CEO Changpeng Zhao (CZ) participated in a DeSci Day event in Bangkok, where he joined Ethereum co-founder Vitalik Buterin in discussing the sector’s potential.

BIO Protocol aims to revolutionize the funding and commercialization of early-stage scientific research by leveraging blockchain technology. Founder Paul Kohlhaas envisions a platform that overcomes traditional funding constraints, fosters patient-driven research, and accelerates groundbreaking discoveries.

At the same Bangkok event, Vitalik Buterin showcased VitaDAO’s first longevity-focused product, VD001, a natural high-dose spermidine supplement approved by Thailand’s FDA. CZ expressed his enthusiasm for the sector, stating, “I hope to see 1,000 DeSci projects next year.”

A Wave of Rising Tokens

In the wake of Binance’s announcement and growing attention to DeSci, the prices of related tokens have surged. For example:

• VITA (VitaDAO): This token focuses on funding early-stage longevity research. Following Vitalik’s presentation of VitaDAO’s first product to CZ, VITA’s price spiked by 82.4% in a single day, reaching $3.12 with a market cap exceeding $80 million. Over the past week, VITA has tripled in value.
• RSC (ResearchHub): Created by Coinbase founder Brian Armstrong, RSC rewards users for contributing high-quality content, such as research papers, reviews, and peer evaluations. Over the past week, RSC’s market cap has risen to $60 million, marking a 200% increase.
• BIO (BIO Protocol): BIO Protocol aims to build a global platform for research funding and collaboration. Since its first token sale in August, BIO has appreciated by 264%, with its latest sale price reaching $0.066.
• RIF and URO (Pump.science): These meme tokens have become unexpected stars, each achieving 20x growth over just a few days.

The DeSci Opportunity: Why Crypto Leaders Are Excited

The appeal of DeSci extends beyond meme tokens. Industry leaders like CZ and Vitalik see DeSci as a transformative way to fund scientific innovation. CZ has expressed his interest in using crypto to accelerate research funding in biotechnology, a sector he believes is ripe for disruption. Similarly, venture capital firms like a16z have entered the DeSci space, with their recent investment in AminoChain, a project focused on patient-contributed biological data.

At the heart of DeSci’s promise is its potential to democratize access to research funding, empower researchers, and accelerate breakthroughs in areas like longevity, rare disease treatments, and emerging healthcare solutions. Blockchain technology and decentralized autonomous organizations (DAOs) provide the infrastructure to overcome traditional funding barriers and create global collaborations.

Challenges and Uncertainties

While DeSci shows great promise, it remains to be seen whether this surge in interest will translate into long-term success. Many DeSci tokens have experienced sharp declines after periods of rapid growth. For instance, RSC experienced a significant drop following its 40x rally in November 2023, and VITA has previously fallen from its $100 million market cap highs.

The recent endorsements by Binance and Vitalik are a strong vote of confidence, but whether DeSci can sustain its momentum and become a major crypto sector will depend on its ability to deliver tangible breakthroughs and maintain investor interest.

Projects to Watch

For those interested in DeSci, the following projects are worth monitoring:

• BIO Protocol: Focused on leveraging blockchain for global research funding. Its DAO network spans areas such as cryopreservation, women’s health, and mental health.
• VitaDAO: Backed by Pfizer Ventures, this project funds early-stage longevity research. Its token, VITA, has shown strong recent performance.
• ResearchHub: Incentivizes high-quality scientific contributions through its RSC token.
• Pump.science: A unique platform combining meme culture with medical research, featuring tokens like RIF and URO.

As DeSci continues to gain traction, its ability to combine blockchain technology with real-world scientific challenges could position it as one of the most exciting areas in crypto. Whether it can overcome historical volatility and live up to its potential remains a story to watch.