The total market cap for DePIN now sits at $20 billion, growing over 400% YoY.
With DePIN fundraising up 296% YoY, new acronyms are here including DeGEN, DeGIN, zk-TLS, and AI x DePIN.
Much has changed and much needs explaining.
It's time for an
@MessariCrypto
DePIN Update🧵
The Glow Protocol ☀️ deploys nearly 10 new solar farms a week from Nevada to Florida, replacing 40% of global CO2 emissions with clean solar energy.
It has a token and it (actually) needs a blockchain.
Highlights from my first Messari Enterprise Research report. Link ⬇️
On August 10th, the top DePIN builders and investors from around the world gathered in NYC for the 2nd annual
#DePINSummit
.
With the DePIN Sector MCap up 400% YoY to $20 billion, the excitement for the future of DePIN was palpable.
@MessariCrypto
Analyst Takeaways.
🧵
Looks like the first
@helium
Subnet not associated with Nova Labs is coming soon.
If Virtual Power Plants scale faster by leveraging Helium, the result will inform the GTM of all other emerging DePINs and help validate the network-of-networks thesis.
We're super excited to see these results! Less than 15M left for a passing vote - let's make it happen, and take the next big step on this journey! 🚀
#Helium
An electric summit bringing together the smartest people in DePIN to build the future of the industry.
Stay tuned for
@MessariCrypto
Analyst Takeaways on DePIN Summit 2024 next week.
We were blown away by the quality of attendance for DePIN summit 2024.
Massive thank you for the participants, who showed up and showed out.
In classic VC fashion, wanted to share some simple takeaways I got from the event 👇🏻
Q2 saw crypto fundraising volume rise 22.5% to $3.65 billion QoQ, driven by mega deals in
@monad_xyz
($225 million),
@farcaster_xyz
($150 million),
@berachain
($100 million), and others.
Key insights from the
@MessariCrypto
Q2 Fundraising report. 🔽
The Networks sector saw the
Awesome job by the inaugural
@MessariCrypto
Summer Analyst class!
Shoutout to my mentees
@elliotsternber1
and
@assadjuan
for brilliant work evaluating Stablecoin Adoption in Latin America.
Messari hired twelve crypto-native intern analysts from elite schools over the summer.
Now, they've come together to cover the most exciting upcoming narratives for 2024. The first of this two-part report covers AI, gaming, and stablecoin adoption.
🔗
1/ Diversity of real-world problems solved by DePIN.
From updating electric grids built in 1898 to making at-home internet virtually free to increasing driver compensation with a decentralized Uber, DePIN is solving real problems that even your grandma could understand.
DePIN is on fire! 🔥
Sector mktcap skyrocketed 5x in a year, hitting $20 billion.
Fundraising shot up 4x.
Time to take notice.
@dylangbane
of Messari nails it in a recent podcast, cutting through the hype to reveal the truth.
Key takeaways 🚀👇
Infra vs. Apps?
From Friday's
@MessariCrypto
Analyst Discussion 🔽
Once again, the crypto world is debating whether the industry should focus on investing in blockchain infrastructure or applications for end-users. This debate has persisted in various forms for well over a
DePIN founders had startups that needed crypto to scale. They didn’t start with crypto and try and back into a problem. That says something about the probability of success.
@Filecoin
led DePINs by Market Cap at $2.4 B, followed by
@rendernetwork
in 2nd at $2.2 B and
@opentensor
in 3rd at $2.1 B.
Seven of the top eight DePIN protocols by market cap are DRNs, worth a combined $12.2 billion.
@helium
is the only Physical Resource Network (PRN) that
Crypto x AI fundraising volume is up 380% in July MoM, with over $225 million raised this month.
- $85 million mega Seed round in
@sentient_agi
.
- Polygon's
@sandeepnailwal
investing intensely in AI.
- The L2 AI Wars have begun.
@MessariCrypto
Fundraising Friday Spotlight
2/ Lack of competition between DePIN projects.
There are too many opportunities in DePIN to bother with competing, and projects in the same vertical are tackling massive markets ripe for disruption.
Forming partnerships over ping pong was the vibe. Keeping secrets was not.
6/ Special thanks to
@EV3ventures
,
@MoneroMahesh
,
@DAnconia_Crypto
, and everyone else who put this together.
Attendance was 3x from last year, and Messari is excited to see what's in store for next year.
Full Analyst Report in next tweet👇
5/ The DeGEN and DeWi Sectors are seeing tons of excitement.
Fixing the energy grid and reducing CO2 emissions on the DeGEN side.
Making internet access free globally on the DeWi side.
These are massive problems that DePIN might be best suited to tackle.
3/ Early-stage projects are ushering in a new generation of DePIN.
The conference steered towards protocols solving new problems. Conversations were less about storage and more about energy, wireless, and AI.
DePIN is in an era of innovation.
Interesting times indeed.
YoY:
- BTC up 129% (Benchmark).
- SOL up 613% (Outperformed).
- ETH up 75% (Underperformed).
Who saw this coming 5 years ago?
- Trump and RFK Jr. speaking at Bitcoin Nashville.
- Talk of US Gov Bitcoin reserves.
- BRICS leaving SWIFT.
It's been a remarkable year for crypto with the listing of Bitcoin and Ethereum ETFs, the halving, Dencun, and Solana's overall outperformance.
Our team of analysts investigates what's next for the industry after a series of landmark events.
Read now ⬇️
4/ The hard questions are being addressed in DePIN.
Do we solve demand-side constraints through sales and BD?
Can Medallions solve tokenomic and governance issues?
What should even count as a DePIN project?
Serious debates and new ideas dominated the summit.
(1/14) Institutions will tokenize RWAs primarily on Ethereum L2s and will use DeFi to trade the majority of existing RWAs within 10 years. As a result, RWAs will drive the majority of on-chain activity by 2030.
🧵
(13/14) Asset managers will initiate the tokenization of RWA revolution, but the end result will enable self-custody of stocks, bonds, real estate, and other assets on-chain, reflecting the original values of crypto.
(5/14) As a result of tokenization, the cost of operating funds and trading assets will reduce, compliance will be increasingly automated, settlement time will be instantaneous, and internal processes will be automated through smart contracts.
(6/11) Glow solves these problems using game theory, DePIN, and blockchain infrastructure. At a high level, Glow:
1. Incentivizes the creation of solar farms with its native token.
2. Certifies the creation of high additionality carbon credits produced from these solar
farms
(5/11) At the same time, the market for carbon credits is growing astronomically. The compliance market is projected to grow to $2-3 trillion annually by 2030. The voluntary market, which has a dire need for reliable high additionality carbon credits, is projected to reach $30
(9/14) Cross chain interoperability through protocols like CCIP may render where tokenization happens redundant, however, institutions will still require that the majority of ultimate settlement occurs on Ethereum. The interoperability debate is beyond the scope of this thread,
(2/11) As called for in the Paris Agreement, global CO2 emissions must decrease by 45% by 2030 and reach net zero by 2050 to avoid irreversible climate damage. In response, a system of carbon credits has been introduced to incentivize the reduction of CO2 emissions.