Tap-to-earn gaming has seen a decline in user engagement and retention, contrasting with the growth of blockchain gaming. Popular titles like Hamster Kombat, Notcoin, and Catizen have reported significant drops in active users. For example, Hamster Kombat witnessed a drastic decrease in its user base from 300 million in August to just 41 million by early November, marking an 86% decrease.
Moreover, the Ton blockchain supporting these games also experienced a decline in daily active wallets, dropping from over 1 million in September to fewer than 500,000 by December. Additionally, Google Trends data shows an 80% decrease in search interest for “tap to earn” from June to December 2024.
Challenges contributing to the decline in user retention in tap-to-earn games include repetitive gameplay, decreased airdrop rewards, fraud and security issues, and withdrawal difficulties. Players have expressed dissatisfaction with monotonous tasks, reduced rewards, cheating incidents, and withdrawal problems.
The impact of the decline in tap-to-earn games extends to the blockchain they operate on, affecting transaction volume and overall blockchain usage. The industry’s downturn may lead to decreased activity and innovation in the blockchain space.
To revive the industry, developers and platform operators should focus on game variety, reward systems, and community building. Introducing engaging game mechanics, meaningful rewards, and fostering a sense of community can help maintain player interest and loyalty.
Despite the challenges, tap-to-earn game developers have opportunities to recover and grow by aligning game offerings with player preferences and creating unique gaming experiences that integrate digital assets and financial rewards.
In conclusion, the decline in user retention in tap-to-earn games underscores the need for innovation and diversification in the blockchain gaming sector. By addressing challenges and delivering value through game and reward systems, developers can overcome obstacles and contribute to a healthier and more sustainable gaming ecosystem.