DePIN in 2024: Strategic Insights and Market Trajectory | JDI Group 2023 DePIN Report

In 2023, the crypto market rebounded from adversity to a vibrant bull market, propelled by innovations like inscriptions and DePIN (Decentralized Physical Infrastructure Networks). While inscriptions reflect a shift towards fair market entry, DePIN represents a significant leap into Web3 paradigms, merging blockchain with IoT and reshaping commercial infrastructure models.

DePIN incentivizes broad participation in deploying and managing infrastructure networks, promoting efficient, democratic access to digital infrastructure globally.

Covering telecommunications to AI computing, DePIN holds immense potential. As per Messari’s “The DePIN Sector Map” report, the market could reach $3.5 trillion by 2028, indicating rapid sector growth from its current nascent stage.

Our report explores DePIN’s 2023 developments, JDI Ventures’ involvement, and the sector’s projected expansion in 2024.

DePIN: 2023 in Review

DePIN’s emergence as a novel concept in the industry sparked considerable interest, primarily due to the exceptional performance of DePIN concept tokens. However, the concept has been incubating for a considerable duration.

First introduced in early 2023 in Messari’s seminal “The DePIN Sector Map” report, DePIN was defined as leveraging cryptographic economic protocols for the deployment of real-world physical infrastructure and hardware networks — essentially, a blockchain-driven, token-incentivized approach to constructing physical infrastructure networks.

Messari’s bullish market forecast, estimating a $3.5 trillion market cap by 2028, propelled DePIN into the limelight.

Despite this, the genesis of DePIN was more than just a change in terminology. Precursors like Proof of Physical Work (PoPW), Token Incentivized Physical Infrastructure Networks (TIPIN), and EdgeFi laid the groundwork, culminating in DePIN’s adoption post a community vote spearheaded by Messari.

Beyond terminological evolution, the concept of deploying physical infrastructure via cryptographic economic protocols has been under exploration for years. Take for example decentralized networks like Helium (established in 2013) and Storj (established in 2014), which originated from specialized sectors and ventured into decentralized methods for building physical infrastructure networks. This trend gradually encompassed sectors like the internet, AI, energy, and data collection, culminating in the vibrant DePIN sector of today.

After its launch in January 2023, DePIN’s initial traction was fleeting, due to the then-bearish market conditions. Nonetheless, certain visionary investment firms and entrepreneurs began to navigate the DePIN landscape, though their early forays largely went unnoticed.

DePIN resurfaced as a focal topic at the Hong Kong Web3 Carnival in April 2023, largely buoyed by the Hong Kong SAR government’s robust receptivity to Web3’s DePIN and RWA. Its suitability for early-phase implementation attracted further strategic investments and explorations, yet these early initiatives remained under the mainstream radar.

Post-August 2023, DePIN concept tokens like Helium Mobile and Honey experienced a meteoric rise, marking DePIN as one of the most vibrant sectors alongside inscriptions. This resurgence was propelled by a confluence of multiple factors.

The most discernible shift was the overall market transition from a bearish to a bullish stance. However, the stellar performance of DePIN and inscriptions necessitates an exploration into more nuanced reasons.

As previously mentioned, investment firms and entrepreneurs have been active participants in the DePIN narrative, but the market conditions in early 2023 weren’t conducive for new project launches. By the end of 2023, an improved market environment and the maturation of entrepreneurial explorations led to the surfacing of numerous projects, thereby capturing the market’s attention. DePIN swiftly established itself as a significant player in a market otherwise characterized by a drought in technological innovation.

JDI Ventures: Strategic Footprint in 2023

JDI Ventures, operating under the aegis of JDI Group and specializing in Web3 infrastructure technology, strategically positioned itself across a spectrum encompassing hardware service providers, DePIN project parties, developers, and communities.

Since its inception in 2019, JDI Group has been at the forefront of the DePIN industry, both through investments and as one of the earliest and most significant hardware contributors. They established a robust hardware platform, integrating leading projects within the DePIN and Decentralized AI ecosystems. Notably, their pivotal role in the development and promotion of the hardware infrastructure for Helium and DIMO Network, especially in addressing supply chain and community service challenges in Asia, underscores their strategic significance.

Over the past four years, JDI Group has strategically capitalized on pivotal opportunities within the DePIN industry. Their continuous investment, exploration, and promotion have culminated in a deep reservoir of experience in DePIN construction, catalyzing the adoption of Web3 applications in the real world and emerging as a definitive leader in the DePIN arena.

In the past year, JDI Ventures has strategically invested in a suite of projects, including Geodnet, PowerPod (electric vehicle charging solutions), Metablox (a global WiFi network integrated with Web3), Helium Mobile (a blockchain-based mobile network service), DIMO Network, and Hivemapper (connected vehicles). Simultaneously, they have actively explored the potential of DePIN projects in regions with nascent infrastructure, effecting transformative changes in local communication ecosystems.

In 2024, JDI Ventures’ curated portfolio of DePIN projects is expected to manifest the extensive applications and inherent potential of DePIN technology. Highlighted below are key projects from JDI Ventures’ extensive portfolio.

1. Helium Mobile

As an early proponent and participant of Helium, JDI Ventures has now deepened its involvement in the Helium Mobile project. With a subscriber base exceeding 10,000, Helium Mobile epitomizes rapid adoption and market penetration. The MOBILE token has witnessed over a 1000% increase in value in recent months, driven by the expansion of 5G and Wi-Fi networks, with a national service launch poised to trigger exponential network growth.

At the dawn of 2024, Helium Mobile’s subscriber data usage on the Helium network eclipsed that on T-Mobile, signaling a paradigm shift in user preference towards Helium’s services over traditional mobile operators. This trend underscores Helium Mobile’s success in not only attracting and retaining users but also commencing to challenge the data traffic dominance of traditional large-scale operators.

2. DIMO Network

In December 2023, DIMO Network celebrated a year of operational excellence on its mainnet. With the support of Hashdog, a key hardware manufacturer in JDI Ventures’ portfolio, DIMO achieved significant advancements in vehicle data connectivity and analysis.

• Recognition: DIMO was acknowledged as a frontrunner in CB Insight’s “Top Connected Vehicle Data Platform Companies” and received special mention in CryptoLola’s top DePIN projects showcase.
• Real-time Vehicle Valuation: Over 32,000 vehicles, valued at upwards of $300 million, were connected to DIMO, leveraging real-time valuation tools that maximize asset value for vehicle owners.
• Macarons Device Integration: By the close of 2023, over 1,000 Macarons devices had been integrated into the DIMO network, with projections indicating a significant uptick in the coming year.
• Fuel Level Analytics: DIMO’s analytics team successfully tackled the complex challenge of accurately gauging fuel levels within vehicle tanks.
• Streamlined Used Car Transactions: DIMO’s comprehensive monthly reports simplified the process for buying and selling used cars, providing accurate price valuations and equipping users with essential market insights.

3. PowerPod

JDI Ventures’ investment in PowerPod represents a strategic foresight into the burgeoning fields of new energy technologies and green transportation solutions. As a pioneering startup in electric vehicle charging solutions, PowerPod demonstrates immense growth potential in developing distributed shared charging networks. PowerPod’s vision aligns seamlessly with JDI Ventures’ commitment to promoting eco-friendly transportation and energy solutions globally. This investment not only highlights JDI’s dedication to clean energy and sustainable development but also marks an exploration into avant-garde energy network models.

4. Metablox

Metablox has revolutionized network connectivity, enabling users to seamlessly roam between global access points while accruing token rewards for network participation. Currently, Metablox has established 12,000+ nodes across 96 countries, attracting 11,000+ active users, and securing the second rank on DePINscan. This success serves as a cornerstone for future expansion in the DePIN sector. Metablox’s triumph is a testament not only to technological ingenuity but also to the enhanced collaboration and transparency that is reshaping the DePIN landscape. JDI Ventures has been instrumental in supporting Metablox’s technological evolution and in bolstering its market presence and brand establishment within the DePIN arena.

5. Geodnet

GEODNET’s main revenue streams originate from its correction services and related offerings to the global satellite navigation system (GNSS) industry. The enhancement services sector is estimated to be a substantial $20 billion market. GEODNET has established a competitive edge in high-precision applications, with over 3,300 user-operated sites deployed and plans to expand its network to over 50,000 sites by 2024, aiming to cement its status as one of the world’s largest networks. 2023 marked a milestone year for GEODNET, witnessing the burning of 4,040,000 GEOD tokens (0.4% of the maximum supply), a testament to its on-chain revenue generation. JDI Ventures’ involvement extended beyond financing, playing a pivotal role in GEODNET’s hardware sales and operational strategies.

6. Phoenix Global

Phoenix Global introduces a decentralized AI infrastructure encompassing an AI computational layer and an enterprise-grade Layer 1 blockchain. Additionally, Phoenix’s no-code AI deployment and multi-party computing solutions ensure the security of data privacy while enabling efficient analysis, computation, and value sharing. JDI Ventures, as a strategic investor and hardware collaborator, is set to significantly contribute to the rapid growth of the SkyNet AI node network, particularly through the imminent launch of PhoenixNode and additional computational infrastructure hardware. This strategic partnership deepens JDI Ventures’ influence and involvement in the burgeoning AI landscape.

7. Wicrypt

Wicrypt, a trailblazer as Africa’s first blockchain-based decentralized wireless infrastructure project, has garnered support from tech giants like Microsoft and Google Cloud. Deploying over 1,100 hotspots in more than 30 countries, Wicrypt enables individuals and businesses to share their internet connections and earn token rewards based on usage. JDI Ventures extends its support beyond financial backing, collaborating on hardware initiatives to foster Wicrypt’s global development and widespread adoption, thereby contributing significantly to bridging the global digital divide.

8. Meson Network

Meson Network, a decentralized CDN, harnesses the power of Web3 incentive mechanisms to decentralize the aggregation of extensive public data. It is poised to become an essential backbone for data transmission within distributed storage, computing frameworks, and the burgeoning Web3 Dapp ecosystem. Meson Network amalgamates idle IP and bandwidth resources from individuals, crafting a distributed network that serves users based on specific criteria. Boasting over 10 Tbps of cumulative global bandwidth and more than 20,000 mining nodes, Meson Network exemplifies the transformative potential of blockchain technology in evolving traditional producer-consumer dynamics into incentive-driven network models.

The eight DePIN projects detailed above span a variety of sub-sectors, illustrating the breadth of JDI Ventures’ strategic involvement. However, their engagement extends beyond these projects, with ongoing explorations and investments in green energy initiatives, including decentralized energy internet Arkreen and virtual power plant Starpower. Further disclosures regarding JDI Ventures’ comprehensive activities in the DePIN sector will be progressively unveiled.

JDI in 2024: Navigating the Future of DePIN’s Development

As the analysis of DePIN’s evolution in 2023 and JDI Ventures’ strategic maneuvers reveal, DePIN’s rise is a long-cultivated narrative, not a fleeting trend. It represents a critical convergence point for the Web3 and real-world sectors, acting as a gateway for mutual integration and enlightenment.

Distinguished by its infrastructural nature, DePIN’s approach to information dissemination markedly differs from consumer-focused sectors like GameFi and DeFi. The flow of information primarily occurs within industry-specific circles, including institutions, project entities, and mining communities. Thus, the sudden emergence of the DePIN sector, while initially unexpected, is a logical development within the broader dynamics of the crypto market.

Standing at the threshold of 2024, it’s essential to identify emerging signals and trends in the DePIN sector. The heightened interest in late 2023, especially from global family offices and business magnates, is driven by a recognition of the overarching Web3 trend and an intuitive understanding of DePIN’s business models and commercial potential. This influx of capital, spanning personal angel investments to hardware acquisitions, suggests a sustained interest in the sector.

JDI Ventures, a leader in the previous bull market’s DePIN sector, has continued its focused expansion in 2023. Anticipating the sector’s growth in 2024, JDI Ventures is poised to leverage its extensive experience, supporting DePIN projects in areas such as capital, hardware, supply chain, and community services, guiding them towards achieving their market potential.