Telegram-based cryptocurrency games are rapidly losing users, even as the broader cryptocurrency market experiences a bullish phase.
Google Trends data reveals that search interest in tap-to-earn fell by 80% between June and December 2024. This significant drop suggests that players and investors may be focusing on other areas of the thriving crypto market.
Decline in user interest and engagement in Tap-to-Earn games
Major Telegram-based games such as Hamster Kombat, Notcoin, and Catizen have seen a massive decline in users despite a booming crypto market. According to TGStats, Hamster Kombat alone lost over 3 million users in just one month, while Notcoin and Catizen lost 428,000 and 407,000 users, respectively.
On-chain activity data paints a similar picture. The Ton blockchain, which powers these games, recorded over 1 million daily active wallets in September. According to TonStats, that number had fallen below 500,000 in December.
A Chainplay survey of 957 players confirms these results. While 17.8% of users abandoned after their first airdrop, 50.6% reduced their activity, suggesting a drop in interest after initial rewards.
Additionally, developers continue to struggle to retain users as many players leave after claiming free tokens. Animoca Brands reports that the best-performing projects manage to retain only 60% of their maximum daily active users, with the worst-performing projects retaining only 25%.
Why Tap-to-Earn Games Are Losing Players
Repetitive gameplay remains a major problem. Chainplay reported that over 51% of players surveyed cited monotonous tasks as the main reason for stopping gaming. Despite efforts to improve user experience, many Tap-to-Earn games rely on simple mechanics, causing player fatigue.
Additionally, larger player bases dilute the rewards of airdrops, leaving participants feeling undervalued. More than half of the users surveyed expressed dissatisfaction with the reduced allocations.
Fraud and security issues also contribute to user attrition. Games like Hamster Kombat have banned millions of accounts for exploiting reward systems. Security risks such as hacking and cheating further discourage participation, with 21.8% of respondents highlighting these issues.
Finally, difficulties in withdrawing rewards frustrated players, with 35.9% citing difficulties in cashing out. While retention issues persist, the future of pay-per-click crypto games will depend on whether developers can address these fundamental issues and deliver engaging, secure experiences that appeal to a wider audience.
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