DePIN Sector Matures With 25+ Projects Now Generating Revenue

• According to Messari, the sector’s price-to-sales (P/S) ratio currently sits between that of base layer protocols and DeFi projects
• The report analyzes 80 DePIN projects, with 25 shown to be revenue-generating, featuring valuations based on FDVs
• DePIN market surpassed $50 billion last year and is estimated to reach $3.5 trillion by 2028

The Decentralized Physical Infrastructure Networks (DePIN) sector is experiencing notable growth, now having over 25 projects generating revenue. According to Messari, the sector’s price-to-sales (P/S) ratio currently sits between that of base layer protocols and DeFi projects, which indicates a maturing market with growing revenue.

DePINs, split into Digital Resource Networks (DRNs) and Physical Resource Networks (PRNs), are evaluated for valuation drivers, and Messari’s chart compares their P/S ratios in the time span between 2023 and 2024.

The report analyzes 80 DePIN projects, showing that 25 of them are revenue-generating, with valuations based on Fully Diluted Valuations (FDVs). It must be said that some revenue data may be skewed by inflationary token practices, as not all figures are verifiable on-chain.

DRNs Outpace PRNs in Valuations and Revenue

Interestingly enough, despite both being part of the same decentralized infrastructure design space, there seems to be a valuation gap between DRNs and PRNs in the DePIN sector. Namely, DRNs are averaging an FDV of $132 million, which is 3.5 times higher than PRNs at $36 million.

This disparity could suggest that markets treat DRNs and PRNs as economically distinct, potentially driven by differences in fundamentals like revenue. For instance, it was stated that Median DRN revenue was $1.5 million compared to $730k for PRNs in the first quarter of this year.

A Growing Market

Regardless of the disparity, the data already shows a growing DePIN market that surpassed $50 billion last year, and by some projections is estimated to reach $3.5 trillion by 2028.

Messari reports that the market encompasses around 350 tokens and that daily, over 13 million devices participate in DePIN operations across the globe. When it comes to blockchains, Solana leads in infrastructure while Base dominates in consumption and market share.

DePIN looks to be on the rise when it comes to venture and institutional capital as well. Last year, DePINs raised more than $350 million across Pre-Seed, Seed, and Series A rounds. 

As DePIN projects continue to mature, their focus on real-world utility and revenue generation positions them as a compelling segment within the crypto ecosystem.