State of DePIN 2023

Sami Kassab and Salvador Gala, co-founder of Escape Velocity (EV3), have co-authored EV3's annual 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 the PDF version.

Key Insights

• Decentralized Physical Infrastructure Networks (DePINs) use crypto-incentives to efficiently coordinate the buildout and operation of critical infrastructure.
• The DePIN ecosystem has grown to over 650 projects in 2023, spanning six subsectors: compute (250), AI (200), wireless (100), sensors (50), energy (50), and services (25).
• The combined market cap of DePINs with liquid tokens exceeded $20 billion, generating ~$15 million in annualized onchain revenue.
• DePIN revenues, anchored in utility rather than speculation, have shown to be the most resilient in the last market cycle. While the broader crypto market faced a steep 70-90% decline, DePIN revenues experienced a much milder drop of only 20-60% from their peak values.
• DePINs saw the addition of over 600,000 nodes, predominantly from software-based DePINs, which are capitalizing on the sophisticated sensors within mobile phones.
• Looking ahead to 2024, DePINs will likely begin experimenting with ZK technology, memecoin integrations, onchain AI, and onchain gaming.

To read this report, download the PDF version.

Let us know what you loved about the report, what may be missing, or share any other feedback by filling out this short form. All responses are subject to our Privacy Policy and Terms of Service.