Tap-to-earn crypto games on Telegram are experiencing a rapid decline in users, despite the overall bullish trend in the cryptocurrency market.
Recent data from Google Trends shows an 80% drop in search interest for “tap-to-earn” from June to December 2024. This significant decrease indicates a shift in focus among players and investors towards other areas within the thriving crypto space.
The Decrease in User Interest and Engagement in Tap-to-Earn Games
Popular Telegram-based games like Hamster Kombat, Notcoin, and Catizen have seen a sharp decline in users despite the bullish crypto market. According to TGStats, Hamster Kombat lost over 3 million users in just a month, while Notcoin and Catizen saw drops of 428,000 and 407,000 users, respectively.
On-chain data also reflects this trend. The Ton blockchain, which powers these games, had over 1 million daily active wallets in September, but by December, this number had fallen below 500,000 according to TonStats.
A survey conducted by Chainplay with 957 players supports these findings. While 17.8% of users quit after receiving their first airdrop, a significant 50.6% reduced their activity, indicating waning interest after initial rewards.
Developers are facing challenges in retaining users, as many players leave once they have claimed their free tokens. Animoca Brands reports that successful projects are only able to retain 60% of their peak daily active users, while less successful projects retain as little as 25%.
Reasons Behind the Decline in Tap-to-Earn Games
One of the main issues contributing to the decline is the repetitive nature of gameplay. Chainplay found that over 51% of surveyed players cited monotonous tasks as a key reason for discontinuing their participation. Despite attempts to enhance user experience, many tap-to-earn games rely on simplistic mechanics, leading to player fatigue.
Furthermore, the dilution of airdrop rewards due to larger player bases has left participants feeling undervalued. More than half of the surveyed users expressed dissatisfaction with the decreasing reward allocations.
Fraud and security concerns are also driving users away. Games like Hamster Kombat have banned millions of accounts for exploiting reward systems, while security risks such as hacking and cheating have discouraged 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 issues and delivering engaging, secure experiences that resonate with a wider audience.