# DePIN Poised as the Key Growth Driver of Blockchain Infrastructure in 2024
The year 2024 marked the establishment of Decentralized Physical Infrastructure Networks (DePIN) as a crucial growth driver within the blockchain infrastructure industry.
Messari has published a comprehensive report outlining the achievements, challenges, and future prospects of DePIN in 2024. Here is a summary of the report’s key findings:
# Rapid Expansion Across Multiple Sectors
DePIN represents decentralized physical infrastructure networks that efficiently operate on public blockchain platforms. This technology is quickly proliferating across various infrastructure sectors including wireless communication, energy, computing, sensors, and logistics.
The DePIN network attracts contributors through reward-based crypto incentives, driving improvements in public infrastructure. Particularly, the surge in demand for AI technology has underscored the importance of DePIN in the computing and data processing sectors.
# Accelerated Growth and Investment Surge
Over the past year, the number of DePIN projects has risen to 1,170, reflecting a year-over-year growth of more than double. Networks that provide computing infrastructure essential for AI model training and digital content creation have garnered significant attention.
According to the report, GPU-based networks have proven more attractive for investment compared to traditional CPU and storage-based networks, due to their higher utilization rates.
Consequently, major investors such as Multicoin Capital, Framework Ventures, and a16z Crypto have collectively injected hundreds of millions of dollars into this sector. These investors are predominantly channeling funds into DePIN projects that lead the computing and wireless communication niches, indicating their strategy to capture early market dominance.
# Scaling Challenges and Emerging Opportunities
Although DePIN networks have achieved a global active node count of 13 million, securing a stable supply base, challenges remain in monetization and demand generation. Despite the emergence of approximately 20 DePIN projects generating annual revenues of $500 million, concerns about the slower revenue growth compared to investment outlays persist.
Improving scalability and interoperability between various networks has been identified as a key challenge. The report suggests that, “DePIN needs to transition to blockchain-based services to diversify revenue models.”
DePIN is also contributing to solving societal infrastructure issues through collaboration with governments and public institutions. For instance, DePIN-based networks have been adopted in Tanzania to secure digital sovereignty and in Mexico to provide affordable mobile internet services, thereby helping to bridge social disparities.
# Growth Projections for 2025 and Beyond
The report forecasts a significant increase in DePIN projects optimized for augmented reality (AR) and virtual reality (VR) services, driven by advancements in spatial recognition technologies and IoT sensors.
“DePIN will act as a gateway to the digital economy, transforming global market paradigms for the decades to come,” the report predicts.
The growth of DePIN transcends mere infrastructure network development, cementing itself as a vital component of the public blockchain ecosystem and AI technology advancement. Through the integration of cutting-edge technology and infrastructure markets, DePIN appears set to spearhead the new digital economy era.
