DePIN early-stage fundraising has grown 296% YoY: Messari

The decentralized physical infrastructure network market continues to see significant growth, with funding for early-stage projects increasing by 296% year-on-year.

According to details shared by crypto market intelligence platform Messari on X, early-stage DePIN projects have raised more than $246 million in 70 deals as of August 1, 2024. IoTeX (IOTX) has become the platform that has recorded one of the largest funding rounds in this ecosystem so far.

DePIN continues to grow 🌐

Compared to the previous year, fundraising volume increased by 296%, while total market value increased by 400% to $20 billion.

It’s time for someone #DePIN Industry Update 🧵⬇️

— Messari (@MessariCrypto) August 7, 2024

In terms of volume, that figure represents a 296% jump from the previous year, Messari said. By comparison, the total market value of top DePIN projects increased by 400% last year, taking the sector currently worth $20 billion.

DePIN sector sees growth

The growth in the decentralized physical infrastructure network market has witnessed a number of new projects that have attracted the most interest from venture capital firms and other investors.

These new projects are also likely to challenge top AI and DePIN platforms like Filecoin (FIL), Helium (HNT), and The Graph (GRT). Some of the new players are in decentralized gaming infrastructure, AI data layer, and robotics.

Largest DePIN financing deals to date

According to Messari, as of August 1, two of the three largest deals for DePIN in 2024 are investments in the IoTeX and peaq L1 projects.

IoTeX is a modular infrastructure platform that raised $50 million in a strategic funding round in April. Investors included Borderless Capital, Amber Group, and Foresight Ventures, among other VC firms. Meanwhile, peaq is a DePIN and machine real-world asset platform that raised $30 million in a strategic funding round led by Borderless Capital and Generative Ventures.

Income still low

Despite the significant increase in funding and overall market cap growth, the DePIN sector did not record significant growth in revenue.

Only four of the industry’s largest DePIN-focused projects rank among the top eight protocols by revenue.

“The overall weak revenue growth reflects that the DePIN sector remains primarily demand-constrained,” Messari analysts wrote.

Much of this is due to centralized platforms commanding a larger share of the market thanks to their widely integrated solutions.