points are instanced, colors are set with vertex attributes. materials have a prop called “vertexColors” for that use case.
declarative THREE.Points + changing colors
https://codesandbox.io/p/sandbox/point-cloud-zsyu9?file=%2Fsrc%2FApp.js%3A7%2C25
declaratie drei/points + changing colors
https://codesandbox.io/p/sandbox/r3f-points-eq7sc?file=%2Fsrc%2FApp.js%3A39%2C34
use THREE.Points for vast amounts of points. use drei if you need declarative nesting, grouping, adding other stuff to individual points.