State of DePIN 2023

Salvador Gala, Sami KassabJan 5, 2024 ⋅ 1 min read

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.

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Salvador Gala
DAnconia_Crypto

Sal is the co-founder of Escape Velocity (EV3) and co-hosts the Proof of Coverage podcast. Before EV3, Sal was an investor at Ribbit Capital and an investment banker at Goldman Sachs.

Sami Kassab
Old_Samster

Sami Kassab is an Enterprise Research Analyst focusing primarily on Web3 Infrastructure and Bitcoin. Sami previously spent 5 years as an Aerospace Engineer designing aircraft engines and missile & defense systems.

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Outline
  • Key Insights
Authors
Salvador Gala
Sal is the co-founder of Escape Velocity (EV3) and co-hosts the Proof of Coverage podcast. Before EV3, Sal was an investor at Ribbit Capital and an investment banker at Goldman Sachs.
Sami Kassab
Sami Kassab is an Enterprise Research Analyst focusing primarily on Web3 Infrastructure and Bitcoin. Sami previously spent 5 years as an Aerospace Engineer designing aircraft engines and missile & defense systems.
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