Escape Velocity raises $62M DePIN fund as investors double down on crypto infrastructure
Escape Velocity closed a $62 million fund in December to back decentralized physical infrastructure networks (DePIN) and crypto-native infrastructure projects. The vehicle — the firm’s second DePIN-focused fund — drew prominent backers including Marc Andreessen and Micky Malka, with Cendana Capital committing $15 million. Escape Velocity co-founder Mahesh Ramakrishnan said many recent DePIN token launches prioritized hype over product, leaving the sector underdeveloped but still promising. Research by Escape Velocity and Messari estimates the DePIN market cap at about $9–10 billion and forecasts roughly $72 million in onchain revenue in 2025 for revenue-producing networks. The report notes many DePIN tokens remain down 94–99% from all-time highs and that the sector’s market cap has fallen from a late-2024 peak above $43 billion. It highlights greater resilience among projects tied to active physical infrastructure and faster traction in jurisdictions with clearer regulation and immediate demand (for example, the UAE and Singapore). For traders, the fundraise signals continued selective venture interest in infrastructure-heavy crypto bets amid a wider slowdown in venture funding — a development that may support long-term project survival and selective upside for operational DePIN tokens while leaving most speculative tokens under pressure.
Neutral
The news is structurally supportive for infrastructure-focused DePIN projects but not broadly bullish for the sector. A $62M fundraise led by notable backers indicates continued selective venture capital interest, which helps improve survival prospects and provides follow-on capital for operational projects. Research estimates (market cap ~ $9–10B; 2025 onchain revenue ~$72M) and the fund’s focus on quality teams suggest potential medium- to long-term upside for tokens tied to functioning physical infrastructure. However, the sector has seen severe token-level drawdowns (many down 94–99%) and an overall market cap decline from a late-2024 peak above $43B, signaling that most speculative DePIN tokens remain under pressure. Traders can expect: short-term neutral-to-bearish price action for the broader DePIN token set due to low liquidity and poor sentiment; selective bullish setups for tokens of projects with demonstrable revenue or active infrastructure deployments; and increased dispersion — venture support may concentrate upside in a few operational projects rather than lift the whole sector. Risk remains high; trading should focus on fundamentals, onchain revenue signals, and jurisdictional/regulatory exposure.