DePIN Projects Experience Explosive Growth in 2024
A recent report from blockchain intelligence firm Messari reveals that Decentralized Physical Infrastructure Networks (DePIN) projects have seen a significant surge in revenue, reaching over $500 million in 2024. This represents a 100x increase from 2022, with AI-powered DePIN projects dominating revenue streams, followed closely by off-chain projects.
Shift in Revenue Streams
This marks a notable shift from the past two years, where on-chain developments accounted for nearly all DePIN revenue. The growth trajectory of DePIN projects mirrors the early boom of DeFi and NFTs, indicating a promising future for the industry.
Industry Growth and Adoption
According to the report, the number of active DePIN projects nearly doubled in 2023, with DePIN tokens now representing 5% of the total cryptocurrency market cap. Over 13 million devices worldwide contribute to DePIN operations daily, with 20 projects exceeding 100,000 active nodes and five surpassing 1 million nodes.
Investment and Funding
Investment in DePIN projects has also surged, particularly at the seed stage. Private markets saw more capital raised at the pre-seed and seed levels than at Series A. In liquid markets, low listing fully diluted valuations (FDVs) were the key driver of high returns. Late-stage funding primarily flowed into a few standout DePIN projects backed by leading venture capital firms.
Top-Performing DePIN Tokens
Among the top 22 DePIN tokens, only four lost value since their token generation event (TGE). Virtuals Protocol posted exceptional growth, gaining over 30,000% since its TGE. Other projects like NEURAL and NodeAI both grew by more than 2,000%.
Community Contributions and Network Infrastructure
Community contributions played a key role in the industry’s growth, with nearly $230 million raised in 2024 through node sales, crowdfunding, and protocol-owned liquidity pools. Solana and Base emerged as leaders in network infrastructure and consumer-focused applications, respectively. Solana’s low-latency design continues to attract infrastructure innovators, while Base benefits from Coinbase’s established brand and retail reach.
Future Outlook
The DePIN momentum remains strong heading into 2025, with Sui DePIN, the first DePIN layer on the SUI blockchain, recently announcing its upcoming Initial DEX Offering (IDO). Additionally, Chirp launched Kage, the first play-to-earn (P2E) game on the Sui blockchain, which combines gaming with IoT utility.
Conclusion
In conclusion, the DePIN industry has experienced explosive growth in 2024, with revenue reaching over $500 million and a significant increase in active projects and adoption. The shift in revenue streams, investment, and funding, as well as the emergence of new leaders in network infrastructure, all point to a promising future for the industry. As the DePIN momentum continues into 2025, it will be exciting to see how the industry evolves and innovates.
Source: Beincrypto.com
The post DePIN Projects Hit $500M in Revenue, 100x Growth in 2 Years appeared first on CoinBuzzFeed.
