Sami Kassab and Salvador Gala, co-founder of Escape speed (EV3), co-authored the annual EV3 State of DePIN report. This report provides an in-depth analysis of the DePIN space throughout 2023, along with a forward-looking perspective on what’s in store for DePIN in 2024.
To read this report, download PDF version.
Key insights
- Decentralized physical infrastructure networks (DePINs) use cryptographic incentives to efficiently coordinate the construction and operation of critical infrastructure.
- The DePIN ecosystem has grown to over 650 projects in 2023, covering six sub-sectors: computing (250), AI (200), wireless (100), sensors (50), energy (50), and services (25).
- The combined market cap of Liquid DePIN tokens has exceeded US$20 billion, generating annual revenues of approximately US$15 million.
- DePIN’s revenues, based on utility rather than speculation, have shown to be the most resilient in the last market cycle. While the broader cryptocurrency market faced a steep decline of 70-90%, DePIN’s revenues saw a more moderate decline of only 20-60% from peak values.
- DePIN networks have seen the addition of more than 600,000 nodes, most of which are software-based DePIN networks, which leverage the sophisticated sensors inside mobile phones.
- Looking ahead to 2024, DePINs will likely start experimenting with ZK technology, memecoin integrations, onchain AI, and onchain gaming.
To read this report, download PDF version.
