Decentralized physical infrastructure networks, or DePINs, aren’t just a buzzword limited to late-cycle cryptocurrency chatter. A joint State of DePIN 2025 report from Messari and Escape Velocity says the sector has matured into a $10 billion market, with on-chain revenue reaching around $72 million in the previous year. The analysis compares the post-2018-2022 DePIN token pool – down a staggering 94%-99% from its all-time highs – with a handful of projects now generating verifiable recurring revenue and commanding valuation multiples in the 10x-25x revenue range. Massari categorizes these multiples as undervalued given the growth trajectory, highlighting the shift that links networks to real-world use rather than subsidy-based expansion.
According to the report, the 2018-2022 DePIN category remains very low versus historical highs, but the rhetoric makes room for a narrative of practical utility. The study points to a move away from fueled growth and toward networks that monetize real activity, from bandwidth and computing to energy data and sensors. In practice, this means that some DePIN projects move from raising capital and token flows to sustainable cash flows generated by users and institutions. The focus on real-world use represents a marked departure from the early cycles, when symbolic inflation and speculative demand often exceeded tangible revenues.
“Revenue matters more than the price of tokens in the DePIN sector,” said Markus Levin, co-founder of XYO, a DePIN pioneer founded in 2018. Speaking to Cointelegraph, Levin noted that as the market has matured, valuations have begun to reflect actual economic activity that continues even when token prices drift. The bottom line here is not that token prices are irrelevant, but that real on-chain income provides a more sustainable value signal than price action alone.
DePIN’s growth is more resilient than DeFi and L1s. Source: Al-Masari
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DePIN: From hype to revenue
The authors draw a stark contrast between “DePIN 2021” and “DePIN 2025,” arguing that early cycles were centered on networks waiting for revenue, suffering from high token inflation, demand constraints, and valuations driven by retail speculation. In today’s landscape, not only are the leading networks generating on-series revenue, but they are also showing low or minimal exposure to the show. Growth is increasingly based on utility advantages and cost competitiveness rather than subsidies. Levin described DePIN as radically different from broader cryptocurrencies because it offers a tangible, real-world benefit to end users. ROI, in this framework, appears in usage and cash flow first, with price appreciation as a secondary consideration for investors.
DePIN leaders in my path
The report highlights the DePIN Leaders Index, which tracks 15 projects across bandwidth, computing, power and sensor networks that meet criteria such as at least $500,000 in annual recurring revenue and at least $30 million in revenue. A notable finding is that DePIN’s revenue growth has shown greater resilience than some sectors of the decentralized finance (DeFi) ecosystem and tier-1 blockchains during the current bear market. This experimental feature – revenue stability amidst price fluctuations – frames DePIN networks as a potential long-term infrastructure to play in cryptocurrency markets. Helium, a long-time DePIN participant, has made clear the tension between price and revenue: while on-chain revenue has been growing, token prices have suffered significant declines.
DePIN’s narrative is also grounded in the broader Infrastructure-as-a-Service ethos. The report points to a wave of real-world use cases involving positioning, mapping and robotics, where frequent use is beginning to emerge even as some sectors navigate regulatory and competitive pressures. The data suggests that the most durable networks will be those that are able to monetize real customer demand without relying exclusively on incentives. The broader impact on token holders and developers is straightforward: revenue quality increasingly indicates sustainable value, while speculative price movements remain noisy and episodic.
Emerging infrastructure trading for InfraFi and DePIN
Last year saw record DePIN fundraising, with nearly $1 billion raised across the sector, up from $698 million in 2024. Messari’s report highlights a concept called “InfraFi,” a hybrid DePIN/DeFi model where stablecoin holders fund real-world infrastructure and earn a return on those assets. Early examples of InfraFi mentioned include stablecoins and asset pools that fund computing capacity, power and bandwidth, with USDai accessing about $685 million in user deposits to help fund fleets of GPUs. Massari asserts that the most promising DePIN tokens now resemble next-generation infrastructure companies in bandwidth, storage, computing, and sensing, yet they are trading at prices that appear to reduce their chances of survival and ultimate success.
Levin believes that the networks with the strongest growth potential are those that can reliably deliver their services to demand segments that rely on artificial intelligence. He pointed to use cases beyond consumer incentives, where the value lies in recurring revenue streams rather than occasional price hikes. The broader takeaway is that DePIN’s maturation may coincide with a more disciplined investment backdrop, with capital being directed toward networks with clear use and institutional appeal rather than speculative models alone.
As the sector evolves, industry observers expect a continued focus on governance, regulation and product market fit. An ongoing challenge is to reconcile regulatory uncertainty with the demand side – enterprise integration, sensor networks, and AI workloads – where DePIN networks can become essential digital infrastructure. The narrative around DePIN remains nuanced: some projects will struggle to survive regulatory headwinds, while others may thrive by carving out core, recurring revenue streams that support long-term value creation.
Note: The above article references the Messari report and related DePIN analysis, including broader ecosystem dynamics and specific token-level observations.
What are you watching next?
- Updated metrics from the Messari/Escape Velocity State of DePIN 2025 edition, including revised revenue figures and new leaders in the index.
- Enterprise adoption milestones for bandwidth, computing, power and sensor networks, with measurable usage and cash flow data.
- Regulatory developments impacting DePIN applications, particularly in sectors with critical infrastructure implications.
- New InfraFi deployments or partnerships that expand stablecoin financing for real-world infrastructure projects.
- Public disclosures from DePIN’s flagship projects about annual recurring revenue growth and capital raising.
Sources and verification
- My path and escape velocity, DePIN 2025 status report, link above.
- Discussions and explanations of DePIN tokens, including an article explaining DePIN tokens.
- Helium price index and on-chain revenue data referenced in the report.
- DePIN Index of Messari Leaders and Annual Funding Data mentioned in the report.
Market reaction and key details
The DePIN sector does not change due to a single address; Instead, investors are waiting for a permanent shift. The Messari/Escape Velocity study confirms that the most powerful DePIN projects are those that translate user activity into on-chain revenue and demonstrable cash flow. This creates a more flexible investment thesis than speculative bets on rising prices alone. While the price action of coins like Helium (CRYPTO: HNT) and GEODNET (CRYPTO: GEOD) have endured significant drawdowns in recent bearish conditions, on-chain revenue signals point to a mature market where real usage supports long-term value. The report’s framework – revenues first, price second – appears to be gaining traction among developers, operators and institutional observers alike.
Two central threads emerge from the current landscape. First, a range of DePIN projects are moving towards self-sustaining models that minimize supply inflation and maximize utility. Second, a growing subset of projects seek to meet enterprise- and AI-driven demand, with the goal of providing reliable infrastructure services that can scale to fit the needs of modern digital workflows. In practice, the story is shifting from a parabolic growth fantasy to a revenue-based structural narrative that can support a more stable valuation framework for infrastructure tokens.
At the same time, the broader market backdrop remains a factor. Even as on-chain profits have shown resilience, token prices have not kept pace, underscoring the discrepancy between financial market cycles and the operational reality of DePIN networks. For builders and investors, the result is clear: prioritize networks that have demonstrable revenue streams, sustainable margins, and governance that aligns incentives with long-term viability. The tension between incentive structures and objective use will continue to shape how DePIN projects are evaluated in the coming months.
This article was originally published as Messari: DePIN Emerges as a $10B Sector with Resilient Revenues on Breaking Cryptocurrency News – Your trusted source for cryptocurrency news, bitcoin news, and blockchain updates.
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