Dotcoin, a relatively new Telegram game, is becoming highly popular as the industry growth surges. Its number of users has gone parabolic and this momentum is expected to continue in the next few months.
Dotcoin hits 15 million users
Dotcoin is a new Telegram game that resembles other popular ones like Hamster Kombat, Notcoin, and TapSwap. It lets Telegram users add their tokens by just tapping on a small button.
In addition to these taps, one can earn more tokens by inviting friends, following its platform on X, and using boosts. The most recent data shows that the number of users has surged to more than 15 million in the past few weeks, making it one of the best-performing tap-to-earn platform.
Dotcoin and other similar platforms are gaining traction because of their ease of use and the potential for generating substantial returns. Also, the Telegram community is a big one since it has over 900 million users.
The developers hope to continue growing the number of users and then eventually launch an airdrop where these holders will receive their tokens.
A good example of this is what happened recently when Notcoin launched its airdrop. The price of NOT dropped slightly after launch as many users converted their tokens into fiat and then went parabolic. At its peak, it had a market cap of almost $3 billion.
Notcoin had over 30 million users when it started trading. This means that Dotcoin too could achieve a similar valuation if the number of users continues growing this much.
Dotcoin faces potential challenges
There are three potential pitfalls for Dotcoin. First, the level of competition has grown rapidly in the past few months, with the number of tap-to-earn coins reaching over 15. Therefore, user growth could start slowing because of the available alternatives.
Second, the Dotcoin listing could happen in an unfriendly market as most cryptocurrencies have crashed hard recently. Bitcoin has fallen to $65,000 while most altcoins have fallen by double digits.
Third, Dotcoin and other tap-to-earn could turn to be the next play-to-earn platforms like Decentraland, Sandbox, and Axie Infinity. These platforms had robust growth in 2021 but have now lost traction. Their tokens crashed and have never bounced back.
There are signs that this is already happening with Notcoin as its user growth has slowed after its airdrop.
