Tap-to-earn has become one of the fastest-growing sectors in the blockchain industry, attracting millions of users to its platforms. Notcoin, one of the pioneering tap-to-earn platforms, has seen its market cap rise to over $1.6 billion, ranking it as the 50th largest cryptocurrency by market cap. Similarly, Hamster Kombat has gained over 230 million users and almost 33 million YouTube subscribers in less than two months, with its videos amassing over 600 million views.

TapSwap has also experienced substantial growth, adding over 63 million users, 20 million daily active users, and more than 4 million YouTube subscribers. Other noteworthy tap-to-earn networks include AvaCoin, DotCoin, and YesCoin. Based on Notcoin’s valuation, it is likely that platforms like TapSwap and Hamster Kombat will also have significant valuations once they start trading after their pending launches.

Reasons for Tap-to-Earn Growth

Several factors have contributed to the rapid expansion of tap-to-earn platforms:

  • Simplicity: These platforms are easy to use, requiring only the Telegram app installed on your phone.
  • Viral on Social Media: Tap-to-earn platforms benefit from the network effect and offer referral rewards to users.
  • Potential High Returns: The potential for high returns when airdrops launch makes it possible for holders to convert their tokens to fiat.

Lessons from Play-to-Earn and Move-to-Earn

Tap-to-earn is not the first gaming platform to gain popularity in the blockchain industry. Play-to-earn networks like Decentraland and Axie Infinity had thousands of gamers at their peak in 2021. However, their popularity has since waned, with their tokens plunging by over 80% from their all-time highs. Recent data shows Decentraland had 829 unique active wallets in the last 30 days, while Sandbox had less than 2,300 active wallets.

The same trend has occurred in other sectors. Move-to-earn platforms like Sweatcoin and StepN initially attracted millions of users. Today, Sweat Economy’s token has dropped by over 95% from its all-time high, reducing its market cap from over $150 million to $46 million. Similarly, StepN’s GMT token’s market cap has declined from $2.2 billion to $318 million.

There is a risk that tap-to-earn tokens like NOT, HMSTR, and TAPS could follow this trajectory once the hype dies down.

To address this challenge, Notcoin is working to expand its offerings. Earlier this month, it launched Notcoin Explore, a platform for launching Web3 projects on Telegram. Since its launch, the platform has attracted over 400 projects.

Another risk for tap-to-earn tokens is the potential for airdrop recipients to quickly sell, putting downward pressure on the price. This trend has been observed in recent airdrops like zkSync and Wormhole.

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