Telegram's Gaming Boom Faces Harsh Reality in Q4

Declining User Engagement and Revenue Challenges

The explosive rise of Telegram-based tap-to-earn games in 2024 painted a promising picture for blockchain gaming, but recent data suggests that excitement was short-lived. 

A report from data analytics firm Helika reveals that by the fourth quarter, user activity and engagement plummeted across the ecosystem due to “disappointing airdrops” and shifting player interest. While millions of new users flocked to the TON blockchain at its peak, retention rates proved to be a serious challenge, with daily active users sharply declining as the enthusiasm for easy rewards faded.

One of the starkest examples of this decline is "Hamster Kombat," a once-thriving clicker game that saw its user base nosedive from 300 million in August to just 41 million by November, following its highly anticipated airdrop. The game's team later clarified that its peak monthly active users stood at 155 million, significantly lower than the total player count. 

Many expected "Hamster Kombat" to mirror the success of "Notcoin," the game that ignited the Telegram gaming craze, but the latest figures indicate that it failed to sustain momentum. Despite this, the broader TON blockchain experienced substantial growth, adding over 100 million accounts within a year, expanding from around 6 million to over 140 million, according to data from Tonstat.

Helika’s director, Ilya Abugov, emphasized that the firm’s findings were based on a combination of on-chain analysis, surveys, and discussions with key industry players. Helika, which has strong ties to the TON ecosystem through its partnership with The Open Platform (TOP), has been actively involved in fostering Telegram's blockchain-based mini-apps and gaming projects. The firm also played a role in launching a $50 million gaming accelerator with "Notcoin," further embedding itself in the ecosystem’s development.

Retention has emerged as a critical issue for Telegram games, with Q4 user retention rates falling between 5% and 20%, well below traditional gaming benchmarks of 20% to 30%. As initial airdrop-driven incentives waned, the ratio of daily active users to monthly active users also collapsed, further underscoring the difficulty of sustaining long-term engagement. Helika acknowledged that botting and farming activity complicate accurate assessments of real user participation, making retention figures even harder to interpret.

Monetization remains another pressing challenge. Helika’s report found that the average revenue per user (ARPU) for Telegram games was both “volatile and low,” reflecting the broader struggles of blockchain gaming projects in establishing sustainable business models. As user traffic declined, so did the effectiveness of traffic-based monetization strategies, leaving developers scrambling to refine their in-app revenue structures. 

Additionally, Telegram recently mandated that all crypto-based apps on its platform exclusively use the TON blockchain, shutting out competitors like Mantle and Sui. While the move strengthens TON’s position, it may deter developers backed by alternative chains.

Despite the downturn, Helika’s report concluded on a cautiously optimistic note, highlighting Telegram’s continued efforts to attract gaming studios and expand development capabilities. The firm suggested that 2025 could see the emergence of more complex midcore and hardcore gaming experiences on the platform as studios adapt to the shifting landscape.

This article has been refined and enhanced by ChatGPT.