Messari, a crypto market intelligence tool, says that as of August 1, 2024, 70 deals have raised more than $246 million for early-stage decentralized physical infrastructure network (DePIN) projects. Most of these have raised an extensive amount of funds, but IoTeX (IOTX) has raised the most.
Messari pointed out that this cash is 296% more than last year. Also, the total market value of the top DePIN businesses has grown by 400% in the last year, giving the sector a value of $20 billion.
DePIN Market Attracts Investors
Venture capitalists and investors are paying close attention to the DePIN market’s growth. New projects are starting up in areas like robots, decentralized gaming infrastructure, and AI data layers. It is believed that these projects will compete with well-known platforms such as Filecoin, Helium, and The Graph.
As of August 1, 2024, two of the three strongest DePIN deals were stakes in L1 projects, particularly IoTeX and peaq. IoTeX is a modular infrastructure platform that raised $50 million in April in a strategic funding round.
Borderless Capital, Amber Group, and Foresight Ventures were among the participants. According to Borderless Capital and Generative Ventures, Peaq, a platform for DePIN and machine real-world assets, raised $30 million.
The DePIN business has not experienced a corresponding rise in revenue, even though funding and market cap have grown significantly. Six of the eight most profitable protocols are not DePIN-focused projects.
Messari analysts say that the sector’s lackluster revenue growth is mostly due to demand being limited, with centralized platforms having an increased share of the market because their solutions are more widely integrated.
