Stock

Tap-to-earn gaming surges with 950M Telegram users driving rapid growth

In the fast-evolving world of mobile gaming, a new trend is emerging that is capturing the attention of millions of users worldwide: tap-to-earn (T2E)  gaming. 

By offering players the opportunity to earn rewards through simple, repetitive taps, this style of gaming has quickly become one of the most addictive and popular genres in the mobile game market. 

With its roots in easy accessibility and instant gratification, the power of tap-to-earn is reshaping how players interact with games—and it’s showing no signs of slowing down.

What is tap-to-earn gaming?

At its core, tap-to-earn gaming revolves around a straightforward concept: players earn in-game rewards, typically in the form of tokens or cryptocurrencies, by tapping the screen to complete tasks. The more they tap, the more they earn. 

These games are designed to be simple, requiring minimal cognitive effort, making them accessible to a broad audience of gamers.

The earned tokens can often be traded for fiat currency or cryptocurrencies, adding a real-world financial incentive to the gaming experience.

As a sub-genre of the broader play-to-earn (P2E) gaming category, T2E games share the same premise of rewarding players with assets that hold real-world value.

These assets can range from cryptocurrency tokens to non-fungible tokens (NFTs), which players can later trade on digital markets. 

According to a study by Business Research Insights, the global play-to-earn NFT games market, which includes T2E games, was valued at $755 million in 2021 and is projected to grow to $6.3 billion by 2031, boasting a compound annual growth rate (CAGR) of 21.3%.

At its core, tap-to-earn gaming is a straightforward concept: users play games where they tap the screen to complete in-game tasks or challenges, often earning rewards or in-game currency with each tap which can later be redeemed for fiat or other cryptocurrencies. 

As the name suggests, the more you tap, the more you earn. These games are designed to be simple, requiring minimal cognitive effort, making them accessible to a wide range of players.

T2E is a sub-genre of ‘Play-to-Earn’ (P2E) games 

Tap-to-earn or T2E is part of the broader play-to-earn (P2E) game category wherein players are rewarded with in-game assets that have real-world value, like a form of cryptocurrency, non-fungible tokens (NFTs), or other items that can be traded for real money or other cryptocurrencies. 

The global Play-to-Earn NFT Games Market size was $755 million in 2021 & the market is expected to reach $6.3 billion by 2031, exhibiting a CAGR of 21.3% during the forecast period, according to Business Research Insights. 

Level of interest in play to earn games among adults in the US as of December 2022, by age group; Source: Statista

Further, blockchain-based gaming, the broad category that subsumes P2E and T2E games, generated $4.5 billion in revenue in 2022, according to DappRadar.

The psychology behind tap-to-earn gaming is key to its success. By providing a constant stream of small rewards, the games keep players engaged in a repetitive loop.

This “reward feedback loop” taps into the brain’s pleasure centres, creating a dopamine-driven cycle that keeps users coming back for more. 

Further, some of these games even offer lucrative referral bonuses which help draw in more players, thereby adding more value as demand rises.

The ease and simplicity of tap-to-earn games give players a sense of accomplishment, making them highly addictive. Players quickly become invested, eager to earn more rewards with every tap.

Why Telegram is central to tap-to-earn’s rise?

One of the main drivers behind the rapid growth of T2E gaming is its integration with the popular messaging app, Telegram.

With over 950 million users worldwide, Telegram provides a unique platform for these games to flourish. 

Unlike traditional mobile app stores, Telegram allows users to play tap-to-earn games directly within the app, eliminating the need for separate downloads or external links.

Additionally, many T2E games on Telegram have launched native tokens on The Open Network (TON), a blockchain backed by Telegram. 

With the TON wallet integrated into the app, users can store, manage, and exchange the tokens they earn, all within a single platform.

This seamless experience enhances the ease of use and drives engagement, making Telegram a key factor in the success of T2E games.

Telegram’s clean user interface and focus on privacy and security have further fueled the popularity of T2E games. 

With easy access to games and built-in trust due to the platform’s security features, users feel more comfortable engaging with these games, knowing their data is protected.

The rise of major players: Hamster Kombat and beyond

Among the top T2E games, Hamster Kombat has emerged as a standout success. Launched with modest expectations, the game quickly gained popularity due to its engaging gameplay, competitive leaderboards, and high rewards. 

In the game, players engage in virtual hamster battles, tapping to perform moves, earn rewards, and climb the ranks.

The fast-paced nature of the game, combined with its humorous theme, has made it a favourite among players.

What sets Hamster Kombat apart is its community-driven gameplay. Players constantly compete to outperform others, driving retention and engagement.

The developers also regularly introduce new content, updates, and seasonal events, ensuring that the game remains fresh and exciting.

Other popular T2E games, including Dragon Ta, Frog Jumper, TapSwap, and Notcoin, have also capitalized on the growing trend.

Each game offers its unique twist on the T2E model, providing players with a variety of experiences while leveraging the core tap-to-earn mechanics.

With more developers entering the space, competition is intensifying, and the market for T2E games continues to expand.

Does tap-to-earn have long-term potential?

While T2E games are currently riding a wave of popularity, their long-term potential hinges on several factors that could shape their future success.

Rapid user adoption: One of the primary reasons for the success of T2E games is their ability to quickly attract a massive user base.

The simplicity of the games, combined with platforms like Telegram, which already have large numbers of active users, has allowed T2E games to scale rapidly. 

These games provide a low-barrier entry point into the world of decentralized finance (DeFi) and blockchain technology, introducing millions of new users to the space.

For instance, successful T2E games have already attracted millions of players globally, creating a robust user base that extends beyond the typical crypto-savvy audience. 

By rewarding users with cryptocurrency tokens for completing simple in-game tasks, T2E games have opened the doors to broader adoption of blockchain technology.

Potential to evolve and educate: As with any new trend, the future success of T2E games depends on their ability to evolve.

Developers could integrate more complex features such as NFTs, staking, and other blockchain-based incentives to enhance player engagement.

By offering a more immersive and valuable experience, T2E games could retain users for longer periods and provide more significant rewards.

T2E games also have the potential to educate players about the broader possibilities of blockchain and crypto technology. 

By serving as an entry point into decentralized ecosystems, T2E games could introduce players to decentralized applications (dApps), digital asset management, and even governance participation.

Challenges and uncertainties: Despite their rapid growth, T2E games face several challenges that could impact their long-term sustainability. One of the most significant challenges is the economic model.

Many T2E games rely on continuous user growth to maintain their token reward systems. 

If the influx of new players slows down, the token economy could face instability, leading to diminishing rewards for existing players.

Additionally, while T2E games are currently popular, maintaining user engagement in the long term may be difficult. 

Unlike traditional games that offer intricate narratives and complex gameplay, T2E games tend to rely on simple mechanics that may lose their appeal over time without constant innovation.

A gateway to more sophisticated blockchain applications

Despite these challenges, T2E games have the potential to serve as a gateway to more sophisticated blockchain applications. 

By integrating features such as DeFi, NFTs, and cross-platform interactions, T2E games could become an essential part of the broader crypto ecosystem. 

As the games evolve, they could offer players opportunities to engage with more advanced decentralized applications and further explore the world of blockchain.

What’s next for tap-to-earn gaming?

As the tap-to-earn gaming sector continues to grow, industry experts predict that the trend will evolve, incorporating more features and deeper gameplay mechanics. 

Investors like Hashkey Capital and Animoca Brands see T2E games as proof of the scalability of blockchain gaming models. 

According to Animoca Brands CEO Yat Siu, “The next 100 to 200 million users in Web3 will come from Telegram and its gaming ecosystem.”

Despite some concerns about the sustainability of blockchain-based gaming, particularly around “mercenary users” who play solely to earn tokens, analysts are confident that these issues are short-term. 

Games like Hamster Kombat and Notcoin are expected to continue dominating the market, attracting millions of players with their simple yet rewarding gameplay.

The post Tap-to-earn gaming surges with 950M Telegram users driving rapid growth appeared first on Invezz

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

More in:Stock