JDI 2023 DePIN Report: From Incubation to Explosion – Where is the DePIN Sector Headed in 2024?
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JDI 2023 DePIN Report: From Incubation to Explosion – Where is the DePIN Sector Headed in 2024?
This article primarily outlines the development trajectory of DePIN in 2023, as well as JDI Ventures' involvement in DePIN.
Navigating Web3 tides with focused insights
In the past year of 2023, the crypto market endured its darkest and most challenging period, then entered a new bull cycle—ignited by two key concepts: Inscriptions and DePIN (Decentralized Physical Infrastructure Networks). If inscriptions represent the crypto market's demand for fair launches, DePIN represents the infrastructure sector’s embrace of Web3.
DePIN is leading a revolution—not only in the technical integration of blockchain and the Internet of Things, but also in the business model of incentivizing infrastructure development. This revolution is fundamentally transforming physical infrastructure.
From network builders to service providers and end consumers, the DePIN paradigm incentivizes individuals and small businesses to deploy and operate infrastructure networks, enabling more efficient, democratized, and cost-effective deployment of digital-centric infrastructure worldwide.
From telecommunications to data warehouses and sensors, and even AI computing power and model deployment, the potential unlocked by DePIN is boundless.
According to Messari, a leading industry research firm, in its report "The DePIN Sector Map," the DePIN market could reach $3.5 trillion by 2028. In terms of timing, there isn't much time left for DePIN to establish itself—but in terms of market size, the sector is clearly still in its very early stages.
This article reviews the development trajectory of DePIN in 2023, introduces JDI Ventures’ involvement in DePIN, analyzes major DePIN applications, and offers insights into DePIN trends for 2024.
Reviewing the Development of DePIN in 2023
For many practitioners, DePIN appears to be a sudden new concept that gained attention primarily due to the impressive market performance of DePIN-related tokens recently. However, the concept has actually been evolving over a long period.
The term DePIN (Decentralized Physical Infrastructure Networks) was formally introduced in early 2023 by Messari in its report "The DePIN Sector Map," defining it as "deploying real-world physical infrastructure and hardware networks using cryptographic economic protocols." In simple terms, it refers to leveraging blockchain-based token incentives to encourage participants to build physical infrastructure networks.
Messari also offered an optimistic market forecast—projecting the DePIN market to reach $3.5 trillion by 2028—sparking significant market interest.
However, this marked only the naming milestone for DePIN. Prior concepts such as Proof of Physical Work (PoPW), Token-Incentivized Physical Infrastructure Networks (TIPIN), and EdgeFi had already emerged. Ultimately, after a community vote initiated by Messari, the term DePIN was adopted.
Beyond nomenclature, projects based on the principle of "using cryptographic economic protocols to deploy real-world physical infrastructure and hardware networks" have existed for quite some time.
For example, Helium, a decentralized wireless network, was founded in 2013; Storj, a decentralized storage project, launched in 2014. These were early efforts by teams from communications, storage, and other niche sectors exploring decentralized approaches to building physical infrastructure. Later, fields such as internet connectivity, AI, energy, and data collection gradually joined in. Despite their differences, they shared a common core logic, eventually converging into today’s thriving DePIN sector.
After being formally introduced in January 2023, DePIN generated brief momentum before fading, as the broader market remained deep in bear territory. Nevertheless, some investment firms and entrepreneurs began laying the groundwork—an activity largely invisible to the public market.
In April 2023, during Hong Kong’s Web3 Festival, DePIN regained attention—largely because the Hong Kong Special Administrative Region government showed strong openness toward DePIN and RWA (Real World Assets) within the Web3 space, with DePIN being particularly suitable for early adoption. This attracted further investments and initiatives from venture capital, entrepreneurs, and even government bodies—again, mostly under the radar.
It wasn’t until August 2023 that DePIN tokens like Helium Mobile and Honey began surging, becoming the hottest sector after inscriptions. This surge was driven by multiple converging factors.
On the surface, the entire crypto market shifted from bear to bull—but why did only DePIN and inscriptions shine? We must examine the underlying reasons.
As previously noted, investors and founders had quietly been building in the DePIN space. However, unfavorable market conditions in early 2023 and the nascent stage of the DePIN paradigm limited the launch of new projects. By late 2023, improved market sentiment and accumulated entrepreneurial progress allowed many projects to transition from concept to tangible implementation, entering the market one after another. These actions finally became visible, positioning DePIN as a standout sector amid a landscape otherwise lacking technological innovation.
JDI Ventures' 2023 Strategy and Investments
JDI Ventures is a Web3 infrastructure-focused investment arm under JDI Group, strategically investing in hardware providers, DePIN projects, developers, and communities.
Since its founding in 2019, JDI Group has not only invested in the DePIN industry but also become one of the earliest and largest direct hardware participants in the field. It established its own hardware platform to integrate leading projects in DePIN and decentralized artificial intelligence (DeAI), including driving the hardware rollouts of Helium and DIMO Network, particularly resolving supply chain and community support challenges in Asia.
Over the past four years, JDI Group has successfully captured opportunities in the DePIN sector, accumulating extensive experience in DePIN development through continuous investment, exploration, and promotion. It has accelerated the real-world adoption of Web3 applications and has gradually emerged as an industry leader in DePIN, making irreplaceable contributions to the sector’s growth.
Over the past year, JDI Ventures—the investment arm of JDI Group—has invested in projects such as Geodnet, PowerPod (an EV charging solution), Metablox (a global Web3-integrated WiFi network), Helium Mobile (a blockchain-based mobile network service), DIMO Network, and Hivemapper (a vehicle mapping network). It has also actively explored DePIN applications in underdeveloped regions like Africa, fundamentally improving local communication infrastructures.
In 2024, the DePIN projects backed by JDI Ventures will begin to demonstrate the broad applicability and full potential of DePIN technology. Below are highlights of several key investments.
1. Helium Mobile
As an early supporter and participant in Helium, JDI Ventures is now actively involved in the Helium Mobile project. The service has already attracted over 10,000 subscribers, reflecting rapid adoption and market penetration.
The MOBILE token surged over 1000% in recent months, driven by growth in 5G and Wi-Fi networks. With nationwide rollout underway, explosive network expansion is expected.
At the start of 2024, Helium Mobile users consumed more data on the Helium network than on T-Mobile—indicating a clear preference for Helium over traditional carriers. This demonstrates that Helium Mobile, as an emerging DePIN service, is successfully attracting and retaining users and beginning to compete with major telecom operators in data traffic.
2. DIMO Network
In December 2023, DIMO Network celebrated its first anniversary of mainnet operation. With manufacturing support from Hashdog—a hardware manufacturer backed by JDI Ventures—DIMO has made significant advances in vehicle data connectivity and analytics.
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DIMO was recognized by CB Insights as a top connected vehicle data platform and featured in CryptoLola’s showcase of leading DePIN projects.
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Real-time vehicle valuation: Over 32,000 vehicles valued at more than $300 million are connected to DIMO. Its real-time valuation tool helps drivers maximize their vehicle’s worth.
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Macarons device connections: By the end of 2023, over 1,000 Macarons devices were connected to DIMO, with expectations for substantial growth in the coming year.
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DIMO’s analytics team solved the challenge of accurately measuring fuel levels in vehicle tanks.
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DIMO provides monthly reports simplifying used car transactions, offering accurate pricing valuations to help users navigate the secondhand car market.
3. Powerpod
JDI Ventures’ investment in PowerPod reflects a long-term strategic bet on emerging energy technologies and green transportation solutions within the DePIN ecosystem.
As a startup focused on EV charging solutions, PowerPod holds significant growth potential in building a distributed, shared charging network.
PowerPod’s vision aligns with JDI Ventures’ mission to promote environmentally friendly transportation and energy solutions globally. Investing in PowerPod not only underscores JDI’s commitment to clean energy and sustainability but also signals active exploration of innovative energy network models.
4. Metablox
Metablox enables seamless roaming across access points anywhere in the world while rewarding individuals who contribute to its network with tokens.
Currently, Metablox has deployed 12,714 nodes across 96 countries and boasts 11,317 active users, ranking #2 on DePINscan—laying a solid foundation for future growth in the DePIN space.
Metablox’s success reflects not only technological innovation but also enhanced collaboration and transparency in the DePIN ecosystem. JDI Ventures has supported both its technical development and market outreach and brand-building efforts.
5. Geodnet
GEODNET generates primary revenue by selling correction and related services to the global satellite navigation system (GNSS) industry and its users. According to market reports, enhanced GNSS services constitute a category worth approximately $20 billion.
GEODNET already holds a technological edge in high-precision applications, having deployed over 3,300 user-owned stations. It plans to expand its network to over 50,000 stations by 2024, aiming to become one of the world’s largest such networks. 2023 marked GEODNET’s first year of on-chain revenue, during which 4,040,000 GEOD tokens were burned (0.4% of max supply).
JDI Ventures participated not only in GEODNET’s funding rounds but also deeply engaged in its hardware sales operations.
6. Phoenix
Phoenix Global offers decentralized AI infrastructure, including an AI computing layer and an enterprise-grade Layer 1 blockchain. Additionally, Phoenix provides no-code AI deployment and multi-party computation, enabling analysis, computation, and value sharing without compromising data privacy.
As a strategic investor and hardware partner, JDI Ventures is accelerating the development of the SkyNet AI node network, particularly through the upcoming PhoenixNode and additional computing infrastructure hardware.
Through this investment, JDI Ventures strengthens its influence and engagement in the AI sector.
7. Wicrypt
Wicrypt is Africa’s first blockchain-based decentralized wireless infrastructure project, having secured funding from Microsoft and Google Cloud. It has deployed over 1,100 hotspots across more than 30 countries, allowing individuals and businesses to share their internet connections and earn token rewards based on usage statistics.
JDI Ventures supports Wicrypt both financially and through hardware collaboration, jointly advancing the global development and adoption of DePIN to help bridge the digital divide.
8. Meson Network
Meson Network is a decentralized CDN that leverages Web3 incentive mechanisms to aggregate vast amounts of public data. It aims to become the foundational layer for data transmission in distributed storage, computing, and emerging Web3 dApp ecosystems.
Simply put, it aggregates idle IP addresses and bandwidth from individuals to form a distributed network of resources, allocating them to users based on specific rules.
Currently, Meson Network delivers over 10 Tbps of global bandwidth with more than 20,000 mining nodes, demonstrating blockchain’s potential to transform the traditional producer-consumer relationship into an incentive-driven network model.
Summary
These eight DePIN projects span various sub-sectors, and JDI Ventures’ portfolio extends even further. Ongoing explorations include green energy initiatives such as investments in Arkreen, a decentralized energy internet, and Starpower, a virtual power plant. More details on JDI Ventures’ DePIN activities will be disclosed in due course.
Conclusion
As illustrated by the review of the DePIN sector in 2023 and JDI Ventures’ strategic moves, DePIN is not a fleeting meme but a narrative that has matured over a long gestation period.
The power of the DePIN narrative lies in its role as the greatest common denominator between Web3 and the real world—it’s how Web3 becomes tangible, and how the real world enters Web3.
Due to its infrastructure nature, information flow in the DePIN sector differs significantly from user-facing crypto sectors like GameFi or DeFi. Most information circulates among industry stakeholders, project teams, and miner communities. Thus, DePIN’s sudden emergence caught the crypto market off guard—yet, in hindsight, it was entirely predictable.
So, as we stand at the beginning of 2024, what signals and trends should we watch in the DePIN space?
The above analysis explains why DePIN exploded at the end of 2023. Now, a new signal is emerging: growing interest in DePIN from both overseas family offices and mainland Chinese enterprise owners.
Of course, they recognize the overarching trend of Web3, but a crucial factor is that DePIN’s business models and use cases are far easier to understand compared to DeFi, GameFi, or memes. Their capital is already flowing into the DePIN sector through various channels—including angel investments, LP commitments to funds, and hardware procurement—a trend expected to last at least six months.
As the world’s leading DePIN catalyst and champion during the last bull market, JDI Ventures remained laser-focused on the sector throughout 2023. As DePIN prepares for a major breakout in 2024, JDI Ventures stands ready to leverage its rich experience in DePIN development, supporting projects with capital, hardware, supply chain, and community services to collectively capture the trillion-dollar opportunity ahead.
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