Telegram Token Hype Takes a Hit: What's Happening in the Crypto Market
Many highly anticipated Telegram tokens have recently experienced a significant downturn in value, just weeks after their highly publicized airdrops and Exchange listings. This sudden reversal has left investors reeling as some of the most popular tokens, such as RabBitcoin (RBTC) and Catizen (CATI), have seen their values plummet.
The Plunge in Token Values
RabBitcoin, the token associated with the Rocky Rabbit ecosystem, has tumbled to $0.0000037 from its high of $0.000007 in September. Similarly, Catizen has crashed from $1.1974 to $0.4, leading to a substantial decline in its market cap from over $63 million to $47 million. Another notable token, Dogs (DOGS), has also experienced a sharp drop from $0.0011 to $0.00065 in just a few weeks.
Other tokens like Hamster Kombat and Notcoin have not been spared from this trend, with significant sell-offs resulting in billions of dollars in losses for token holders. Even Toncoin (TON), which powers the TON Blockchain, has entered a deep bear market with a staggering 43% decline from its peak this year.
Telegram Gaming Tokens Losing Steam
The once-thriving ecosystem of tap-to-earn and gaming tokens on Telegram is now facing a period of disillusionment among users who amassed large quantities of coins through airdrops. Tokens such as Dogs, Catizen, and Rocky Rabbit, all boasting millions of users, have seen a decline in value due to increased selling pressure from early token holders.
It is common for holders of "to-earn" tokens to offload their holdings after the airdrop to avoid the inevitable drop in value. This phenomenon has also been observed with other airdropped tokens, such as Wormhole and ZkSync, which have witnessed significant declines despite their utility.
Moreover, the broader sentiment in the Crypto market has contributed to the sell-off of these tokens. The Crypto fear and greed index currently sits at 37, indicating a fear-driven market sentiment. Bitcoin's Price has dropped to $60,600, and the total Cryptocurrency market cap has fallen to $2.1 trillion.
Challenges Ahead for Telegram Tokens
Aside from market sentiment, Telegram tokens are struggling to keep users engaged as the value of their reward tokens continues to dwindle. This has been a major factor contributing to the decline in popularity of Play-to-Earn networks that gained traction in 2021.
Data from DappRadar reveals that Notcoin, for instance, had 137 unique active Wallets in the last 30 days. While Catizen had 1.42 million active wallets in the same period, this number has significantly decreased in recent days. Similar trends have been observed in other popular games like Catizen and Hamster Kombat.
The decline in user engagement and value of these tokens underscores the challenges faced by Telegram tokens in the current market environment. As the crypto market continues to evolve, it remains to be seen how these tokens will fare in the long run.
