Telegram-based tap-to-earn crypto games are losing users fast, even though the overall cryptocurrency market is doing well. According to Google Trends, interest in “tap-to-earn” has dropped by a whopping 80% from June to December 2024. This big decline suggests that players and investors are looking elsewhere in the growing crypto space.

Popular games like Hamster Kombat, Notcoin, and Catizen have seen huge drops in users. For instance, Hamster Kombat lost over 3 million users in just one month. Notcoin and Catizen also faced significant losses, shedding 428,000 and 407,000 users, respectively.

On-chain activity tells a similar story. The Ton blockchain, which supports these games, had more than 1 million daily active wallets in September. By December, that number had fallen below 500,000.

A survey by Chainplay, involving 957 players, backs up these findings. It showed that 17.8% of users quit after their first airdrop. Additionally, 50.6% of players reduced their activity, indicating a decline in interest after the initial rewards. Developers are struggling to keep users engaged, as many leave after claiming free tokens. Animoca Brands notes that even the best projects retain only 60% of their peak daily active users, while less successful ones keep just 25%.

So, why are tap-to-earn games losing players? One major issue is repetitive gameplay. Over 51% of surveyed players cited boring tasks as a key reason for quitting. Despite efforts to enhance the user experience, many games still rely on simple mechanics, leading to player fatigue.

Another factor is that larger player bases dilute airdrop rewards. More than half of the surveyed users expressed dissatisfaction with smaller allocations. Fraud and security concerns also play a role in player attrition. Games like Hamster Kombat have banned millions of accounts for exploiting reward systems. Security threats such as hacking and cheating were highlighted by 21.8% of respondents as significant deterrents to participation.

Finally, players face difficulties when trying to withdraw their rewards. About 35.9% of users reported challenges in cashing out their earnings. As retention issues persist, the future of tap-to-earn crypto games will depend on developers addressing these core problems. They need to create engaging, secure experiences that appeal to a broader audience.