Decentralized Physical Infrastructure Networks (DePIN) projects have gained tremendous traction in the past year. In 2024, while crypto markets doubled, DePIN outpaced this growth, which can be attributed to artificial intelligence (AI) achieving global prominence.

New data reveals that this nascent sector currently holds less than 0.1% of their $1 trillion+ addressable market.

DePIN Is The Frontier

As decentralized networks outcompete centralized corporations with faster and more reliable offerings, DePIN is projected to grow 100-1000x over the next decade, according to Messaris latest report.

Interestingly, the chain wars have intensified, with Solana and Base gaining market share. Interoperability solutions like Wormhole and LayerZero have driven DePINs to adopt multi-chain strategies, broadening their user base but fragmenting liquidity. Messari stated that Solanas latency-focused culture appears to have amassed innovators at the infra layer, while Coinbases brand and retail distribution have attracted consumer-focused founders to Base.

Early-stage VCs were found to be aggressively invested in DePIN, buoyed by strong listing conditions. In private markets, funding at the pre-seed and seed levels surpassed Series A rounds. Meanwhile, in liquid markets, projects with lower listing FDVs demonstrated the highest returns.

Of the leading 22 DePIN tokens, only four depreciated after their TGE, with Virtuals Protocol leading the pack with over 30,000% growth. NEURAL and NodeAI also showed remarkable performance as each grew more than 2,000%.

Late-stage capital was directed toward a select few standout projects and was supported by top-tier VCs. These projects launched tokens at 50-100x book value, frequently achieving multi-billion-dollar FDVs. Community efforts also proved crucial as $230 million was raised in 2024 via node sales, crowdfunding, and protocol-owned liquidity pools.

Additionally, DePIN is becoming a tool for local governments to solve infrastructure problems. In fact, the report stated that leaders are using it to address key concerns, such as promoting AI sovereignty in Tanzania and bridging the digital divide in Mexico, to resonate with voters and secure electoral victories.

DePIN Poised for Growth in 2025?

Crypto hedge fund and venture capital firm Pantera Capital recently predicted that 2025 would be a crucial year for DePIN, with regulatory clarity potentially eliminating key barriers for investors and innovators.

Grayscale Research also echoed a similar sentiment and stated that DePIN has emerged as a key focus within its Top 20 crypto investment list.