DePIN continues to grow, with funding up 296% year-over-year and total market cap up 400% to $20 billion. It’s time to understand what’s happening in the DePIN sector!

Seven of the top eight DePIN protocols by market cap are digital resource networks, with a combined value of $12.2 billion. HNT is the only physical resource network to make the top eight.

However, growth in market cap does not correlate with growth in revenue. DePIN revenues remain low across the board, with only the 4 largest DePIN protocols making the top 8 by revenue.

The lack of overall revenue growth reflects that the DePIN industry remains primarily demand-constrained. Centralized platforms continue to offer more integrated solutions that combine raw resources with custom services.

Looking at funding at the earliest stages may give us an idea of ​​which projects have potential. Two of the three largest deals in 2024 were investments in DePIN custom L1s, including IOTX raising $50 million and PEAQ raising $30 million.

So, on which chains are DePIN projects built? Currently, Sol leads the pack with an estimated 78 projects built on the network. Meanwhile, DePIN-focused L1s like IOTX and Peaq are also developing their ecosystems.