How Telegram's Tap-to-Earn Model Will Fuel Web3 Gaming's Growth in 2025

The Telegram gaming ecosystem is experiencing significant growth, with tap-to-earn and clicker games attracting hundreds of thousands of active users within weeks, thanks to the platform's established user base of over 950 million. According to the Q3 2024 Telegram Games Report, top-performing games such as Hamster Kombat and Catizan have demonstrated the appeal of the 'mini-app' approach, initially pioneered by WeChat. However, the rise and fall of blockchain-based games like Axie Infinity, which struggled with user retention, serve as a reminder that Web3 games have not always been successful. To reach its full potential as a catalyst for blockchain adoption, the Web3 gaming segment could learn from Telegram's successful approach. It is predicted that Telegram's mini-app model will be the primary driver of Web3 gaming's growth in 2025. The Telegram gaming ecosystem's ability to attract users can be attributed to its basic rules, fun gameplay, and the ability to earn in-game currency and other items, as well as airdropped tokens for new games. Unlike the high cost of user acquisition for exchanges and other companies, which can be upwards of $10 to $15, Telegram onboards players for less than $1 per user. This cost-effective approach has enabled small development teams to amass millions of users in weeks, with over three million active wallets recorded across just nine games in September 2024 alone, a pace rarely seen in the traditional gaming industry. The key drivers behind this surge are Telegram's vast, crypto-friendly audience and the ease of developing quick, feedback-driven HTML5 mini-games. By allowing players to earn rewards, own tokenized assets, and trade valuable in-game items, the platform introduces players to the world of blockchain in an accessible and engaging manner. Users can start playing immediately without downloading any additional apps or tools, as the games are directly integrated into the platform, reducing the usual points of friction when onboarding non-crypto-native users to Web3 games. Integrating popular gaming IPs, such as Delabs' Ragnarok, further enhances the appeal of Telegram's Web3 gaming ecosystem, bringing beloved, high-traction games to the platform. However, user retention remains an ongoing challenge. While clicker games can quickly onboard a large number of users, their attention often wanes due to limited diversity and simple game mechanics. For the Telegram gaming ecosystem to flourish, it must move beyond tap games and airdrops to something more engaging and sustainable in the long run, making games complicated and diverse enough to maintain interest. To avoid users dropping off, Telegram games must employ user retention strategies such as setting up daily challenges and streaks, utilizing personalization and segmentation, building community-driven economies, and merging with more traditional gaming models. Setting up daily challenges and streaks can promote habit formation and keep players returning, building a routine that allows games to build deeper player relationships. Providing regular challenges maintains user interest through small but consistent rewards, helping to convert casual users into long-term participants. Utilizing personalization and segmentation can tailor content and rewards according to engagement level, making gameplay more satisfying and individualized. Building community-driven economies enables players to buy, trade, or sell in-game items and assets freely, creating a feedback loop of engagement unique to the blockchain space. Merging with more traditional gaming models will inevitably combine richer user experiences with more sophisticated play, drawing on the success of Telegram's mini-app model. With 29 out of 40 of the world's largest video game companies investing in blockchain gaming, including Microsoft, Tencent, Sony, and Nintendo, the future of Web3 gaming will likely continue to rise in 2025 and beyond.