The decline of Telegram-based tap-to-earn crypto games is evident as user interest wanes, despite a bullish crypto market.
Recent data from Google Trends indicates an 80% decrease in search interest for “tap-to-earn” from June to December 2024. This decline suggests a shift in focus among players and investors towards other sectors within the growing cryptocurrency market.
Understanding the Decline in User Engagement
Popular Telegram-based games like Hamster Kombat, Notcoin, and Catizen have witnessed a sharp decline in user numbers amidst a thriving crypto market. TGStats reports that Hamster Kombat lost over 3 million users in a month, while Notcoin and Catizen saw decreases of 428,000 and 407,000 users respectively.
On-chain activity data mirrors this trend. The Ton blockchain, which powers these games, saw a drop in daily active wallets from over 1 million in September to below 500,000 by December, as per TonStats.
A survey by Chainplay involving 957 players echoes these findings. While 17.8% of users quit after their initial airdrop, a significant 50.6% reduced their participation, indicating a decline in interest post-rewards.
Developer challenges in retaining users persist, with many players exiting after claiming free tokens. Animoca Brands notes that successful projects retain only 60% of their peak daily active users, while less successful ones retain as low as 25%.
Factors Contributing to User Attrition
One of the primary issues leading to user drop-off is the repetitive nature of gameplay. Chainplay’s survey reveals that over 51% of players cited monotonous tasks as a key reason for quitting. Despite attempts to enhance user experience, many tap-to-earn games rely on simplistic mechanics, leading to player fatigue.
Moreover, larger player bases dilute airdrop rewards, leaving participants feeling undervalued. More than half of surveyed users expressed dissatisfaction with smaller token allocations.
Fraud and security concerns also play a role in user attrition. Games like Hamster Kombat have banned millions of accounts for exploiting reward systems. Security risks such as hacking and cheating further deter participation, with 21.8% of respondents highlighting these issues.
Lastly, challenges in withdrawing rewards have frustrated players, with 35.9% citing difficulties in cashing out. As retention issues persist, the future of tap-to-earn crypto games hinges on developers addressing these core concerns and delivering engaging, secure experiences that resonate with a wider audience.