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

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As a seasoned researcher with a keen interest in the crypto space, I must admit, I’ve witnessed quite a rollercoaster ride over the years. The recent growth of the Decentralized Physical Infrastructure Network (DePIN) market is nothing short of impressive. With funding for early-stage projects skyrocketing by 296% year-over-year, reaching a whopping $246 million across 70 deals, it’s clear that we’re standing on the precipice of something big.

In simpler terms, the market for decentralized networks used in physical infrastructure is experiencing rapid expansion, as early-stage projects receive a whopping 296% more funding this year compared to last.

Based on information from Messari’s reports as of August 1, 2024, early-stage DePIN projects have managed to raise over $246 million through 70 different deals. Among these, IoTeX (IOTX) stands out with one of the largest funding rounds in this ecosystem.

DePin’s expansion shows no signs of slowing down on the global stage! With fundraising volumes soaring by an impressive 296% compared to last year, our market capitalization has surged an astounding 400%, reaching a whopping $20 billion. Let’s dive into the latest updates within the DePin sector below: #DePIN Sector Update 🧵⬇️

— Messari (@MessariCrypto) August 7, 2024

To put it simply, Messari pointed out that the figure we’re looking at increased by 296% compared to the same time last year. Moreover, the combined market capitalization of leading DeFi projects surged by 400% over the past year, reaching a total value of $20 billion today, demonstrating significant growth for this sector.

DePIN sector seeing growth

In recent times, there’s been a significant surge in interest for the market of decentralized physical infrastructure networks. This increase has caught the eye of various venture capitalists and investors, who are now focusing on numerous emerging projects.

These upcoming ventures may pose significant competition to leading artificial intelligence and Decentralized PIN (Data Indexing Network) platforms like Filecoin (FIL), Helium (HNT) and The Graph (GRT). Among the new entrants are those focusing on infrastructure for decentralized gaming, an AI data layer, and robotics.

Biggest DePIN funding deals so far

Based on information from Messari, it is expected that two of the biggest investment deals for DePIN in 2024 (as of August), will be directed towards L1 projects, namely IoTeX and peaq.

As an analyst, I’d rephrase it like this: I’m currently analyzing IoTeX, a versatile infrastructure platform, which successfully secured $50 million in a strategic funding round back in April. Notable investors such as Borderless Capital, Amber Group, and Foresight Ventures were among the VC firms that contributed. On the other hand, peaq is an innovative DePIN and real-world asset platform, which managed to gather $30 million in a strategic funding round, with Borderless Capital taking the lead, alongside Generative Ventures.

Revenue still low

Although there’s been a large rise in financing and total market value for DePIN, it hasn’t led to a notable jump in earnings or revenue.

As a crypto investor, I’ve noticed that only four of the most significant DeFi projects focused on DePIN (Decentralized Prediction Market Infrastructure) are among the top eight protocols based on revenue.

“Messari analysts noted that the slow overall increase in earnings is due to the Demand-Pricing Inefficiency (DePIN) sector being largely held back by insufficient demand.”

Many aspects are largely due to centralized platforms, which dominate the market significantly because they offer comprehensive, well-integrated solutions on a broad scale.

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2024-08-07 22:52