DePIN Revenue Grows Over 100x in 2024, Messari Research Shows

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2024 witnessed an astounding surge in DePIN project earnings, soaring beyond the half-billion dollar mark and multiplying approximately 100 times compared to the figures from 2022, as per a report by Messari.

In simpler terms, AI-driven DePin projects have become the main sources of income, with off-chain projects coming in second place. This is a significant change compared to the previous two years when almost all DePin income was generated from on-chain developments.

DePIN Growth Trejenctory Mirrors Early DeFi and NFT Boom

A blockchain analysis company called Messari has released an extensive overview of the latest developments within the sector of Decentralized Physical Infrastructure Networks (DePIN).

As per the recent findings, the count of operational DePIN projects almost doubled the previous year. Now, DePIN tokens account for around 5% of the entire cryptocurrency market capitalization. It’s worth noting that more than 13 million devices globally participate in DePIN’s daily operations.

In 2024, 20 DePIN projects exceeded 100,000 active nodes, with five surpassing 1 million nodes.

There was a significant increase in investments for these types of projects, particularly during the early stages like seed funding. The private market witnessed an influx of funds at the pre-seed and seed rounds rather than Series A. In open markets, low valuations after full dilution (FDVs) played a major role in generating high returns.

Out of the top 22 DePIN tokens, just four experienced a decrease in value after their Token Generation Event (TGE). Notably, Virtuals Protocol showed remarkable growth, increasing more than 30,000% since its TGE. Furthermore, projects such as NEURAL and NodeAI also demonstrated impressive gains, with both exceeding 2,000% since the TGE.

Most of the late-stage investment was directed towards exceptional DePIN projects, which were supported by top-tier venture capitalists. Typically, these projects introduced tokens that had a book value of 50 to 100 times their worth, often reaching astronomical market valuations exceeding several billion dollars.

Contributions from the community significantly fueled the expansion of the sector, with approximately $230 million gathered in 2024 via token sales, crowd funding, and liquidity pools managed by the protocol itself.

Simultaneously, Solana and Base have risen as frontrunners in the areas of network infrastructure and consumer-oriented apps. The efficient, low-latency structure of Solana has been a draw for innovators in infrastructure development. On the other hand, Base leverages Coinbase’s well-known brand and extensive retail connections.

In summary, the DePin momentum continued robustly as we approached 2025. Notably, the initial DePin layer on the SUI blockchain has declared its forthcoming Initial DEX Offering (IEO), indicating a promising future for this project.

In December, Chirp introduced Kage, which is the initial play-to-earn (P2E) game on the Sui blockchain. This unique game blends gaming with Internet of Things (IoT) practicality, offering an interactive treasure hunt reminiscent of “Pokémon Go.” Players are rewarded through blockchain incentives as they progress in the game.

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2025-01-07 03:20