The decentralized physical infrastructure network market continues to see significant growth, with early-stage project funding increasing 296% year-over-year.
According to details shared by crypto market intelligence platform Messari on X, early-stage DePIN projects have raised over $246 million across 70 deals by August 1, 2024. IoTeX (IOTX) is the platform that has so far registered one of the largest funding rounds in this ecosystem.
The figure represents a 296% year-over-year jump in volume, Massari noted. By comparison, the total market cap of the largest DePIN projects has grown 400% over the past year, putting the sector currently at $20 billion.
DePIN sector is growing
The growth in the decentralized physical infrastructure network market has seen a number of new projects attract the most attention from venture capital firms and other investors.
These startups are also likely to challenge leading AI and DePIN platforms like Filecoin (FIL), Helium (HNT), and The Graph (GRT). Some new companies are working on decentralized gaming infrastructure, AI data layer, and robotics.
DePIN’s Largest Funding Deals to Date
According to Messari, two of DePIN’s top three deals in 2024 as of August 1 are investments in L1 IoTeX and peaq projects.
IoTeX, a modular infrastructure platform, raised $50 million in a strategic funding round in April. Investors included Borderless Capital, Amber Group, and Foresight Ventures, among other venture capital firms. Meanwhile, Peaq, a real-world machine and DePIN asset platform, raised $30 million in a strategic funding round led by Borderless Capital and Generative Ventures.
Revenues remain low
Despite the significant increase in funding and overall market cap growth, the DePIN sector has not recorded a significant increase 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 the DePIN segment continuing to be primarily exposed to demand constraints,” according to Messari analysts. books.
Much of this is due to centralized platforms capturing a larger market share thanks to their widely integrated solutions.
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