According to PANews, the decentralized physical infrastructure network (DePIN) sector has experienced substantial growth, with financing increasing by 296% year-over-year and total market value rising by 400% to $20 billion. This article delves into the current state of the DePIN field, highlighting key developments and trends.

The DePIN sector has expanded to include four new subfields: decentralized gaming infrastructure (DeGIN) focusing on computing networks, AI data layers involving bandwidth networks, robotics within mobile networks, and manufacturing also within mobile networks. Among the top eight DePIN protocols by market value, seven are digital resource networks (DRN), collectively valued at $12.2 billion. Helium stands out as the only physical resource network (PRN) in the top eight.

Despite the significant market value growth, revenue growth has not kept pace. All DePIN protocols report low revenue, with only the largest four making it to the top eight in terms of income. This overall weak revenue growth suggests that the DePIN sector will continue to be primarily demand-constrained. Centralized platforms are expected to keep offering more integrated solutions, combining raw resources with customized services.

Examining early-stage financing can provide insights into where investors see the most potential. In 2024, two of the three largest funding rounds were directed towards DePIN-specific Layer 1 (L1) networks, including IoTeX, which raised $50 million, and Peaq, which secured $30 million. Currently, the Solana network leads with approximately 78 DePIN projects. Meanwhile, L1 networks like IoTeX and Peaq are also developing their ecosystems.