# Messari Report Highlights Rapid Growth in Decentralized Physical Infrastructure Networks
On October 8, blockchain analytics firm Messari released a report on Decentralized Physical Infrastructure Networks (DePIN). According to Messari, the DePIN market is experiencing rapid growth. Funding for DePIN projects has surged by 296% year-over-year, while the overall market value has increased by 400%, reaching $20 billion. Despite this impressive growth, profitability issues remain unresolved.
The report identifies the addition of four new subsectors to the DePIN landscape: Decentralized Game Infrastructure (DeGIN) focused on computing networks, AI Data Layer and Bandwidth Networks, Robotics and Mobility Networks, and Manufacturing and Mobility Networks. This expansion is broadening the scope of DePIN applications.
An analysis of the market value of major DePIN protocols reveals that seven out of the top eight protocols fall under the Digital Resource Network (DRN) category, with a combined market value of $12.2 billion. Helium is the only Physical Resource Network (PRN) that ranks among the top eight.
Despite the significant market growth, the DePIN sector continues to struggle with profitability. Only four of the top eight protocols are among the revenue leaders, indicating ongoing demand constraints in the DePIN market.
Messari notes that centralized platforms continue to offer tailored services and integrated solutions, giving them a competitive edge over DePIN.
In early-stage funding, investors are showing the greatest potential in custom Layer 1 (L1) investments tailored to DePIN. Notable investment cases for 2024 include IoTeX raising $50 million and Io.net (IO) securing $35 million.
Solana leads the development chain for DePIN projects, harboring approximately 78 projects. Additionally, DePIN-focused Layer 1 networks like IoTeX and Peaq are also expanding their ecosystems.
