Telegram games had trouble earning revenue, retaining users in Q4: report

Millions of new users signing up to the Telegram-linked TON blockchain thanks to the meteoric rise of tap-to-earn games was heralded by many in web3 as one of last year's success stories . But that growth quickly came to a halt as by the fourth quarter of 2024 user activity shrank amid "disappointing airdrops," according to a new report released on Friday.

"Q4 2024 was a sobering time for the Telegram ecosystem," said data analytics firm Helika. "After the tap-to-earn euphoria reached its peak at the end of Q3, gamers were faced with disappointing airdrop outcomes and traffic and engagement numbers recoiled sharply across" the messaging app’s blockchain-based ecosystem.

According to Helika, the clicker game "Hamster Kombat" is the prime example of a nascent project delivering a lackluster airdrop. The game initiated an airdrop late last year that left many in its community upset as "Hamster Kombat" was unable to replicate the success of "Notcoin," the tap-to-earn game that triggered interest in the Telegram-based games.

"Hamster Kombat’s user base plummeted from 300 million in August to 41 million by November post-airdrop," according Helika's report. The team behind "Hamster Kombat" told The Block that "the 300 million users represent the total number of players, not the MAU. The peak MAU figure was north of 155 million."

Regardless of "Hamster Kombat" disappointing many of its users the TON blockchain has added over 100 million new accounts during the past 12 months, growing from about 6 million to over 140 million, according to Tonstat .

Helika Director Ilya Abugov told The Block that his firm's report is based on both "analyzing onchain data" and "surveys and discussions with teams." Helika has close ties to the TON ecosystem. Last year, Helika partnered with The Open Platform, or TOP, a major venture builder across The Open Network, or TON, blockchain. Nearly all of the mini apps and games created for the Telegram ecosystem are based on TON.

Additionally, the Pantera Capital-backed Helika teamed up with "Notcoin" in launching a $50 million Telegram gaming accelerator last year. 

Retention struggles

At the end of last year, user retention rates for Telegram games scored in the low range of 5% to 20%, "far below traditional gaming benchmarks" of 20% to 30%, Helika said. "As the allure of easy airdrop money faded, DAU/MAU numbers in similar applications dropped and activity across the entire ecosystem fell," the firm added.

TON Foundation , which is in charge of fostering the development of the blockchain and has close ties to Telegram, didn't immediately respond to a request for comment. 

"It’s worth noting that due to botting and farming activity, identifying the real number of users and in particular gamers, can be incredibly difficult," Helika added.

Making money

Helika said its research demonstrated that the average revenue per user, or ARPU, for Telegram gamers, was "volatile and low," adding that "with traffic sale numbers coming under pressure due to a drop in user activity and [in-app] models still being worked out, few teams are able to make the unit economics work."

Helika also pointed out that last month, "Telegram mandated that all crypto-based" apps “exclusively use TON, sidelining competitors like Mantle and Sui." The analytics firm stated that while the move "solidifies TON’s position,” it could alienate "developers funded by other chains."

Although Helika's report throws cold water on the TON ecosystem's success in signing up many of Telegram messaging app's nearly 1 billion users, the firm ended its report on a high note as it looked ahead to the rest of 2025.

"It is clear that Telegram cares about attracting gaming studios, and is opening up capabilities for them," Helika said. "This sets the stage for more complex gaming experience to show up in 2025 as studios are able to publish midcore and hardcore titles."