Catizen, the popular Telegram game, crashed to a new low on Thursday after the token-claiming period ended. The CATI token dropped to a low of $0.3660, down by over 67% from its highest point in September. This retreat brought its circulating market cap to $75 million and its fully diluted valuation (FDV) to $368 million.
Catizen’s plunge happened after the network completed the claim process after its token generation event (TGE) in September. After this event ends, the CATI token holders will now vote on what to do with the remaining tokens.
Data compiled by CoinGecko shows that Catizen has a circulating supply of 206 million tokens and a maximum supply of 1 billion. Users can continue earning CATI tokens by playing its game on Telegram.
For starters, Catizen is one of the biggest players in the Telegram ecosystem. It is a platform that lets users accumulate tokens by collecting as many cats as possible. Users can also earn tokens through on-chain interactions, task completions, and in-app purchases.
Over time, the network has accumulated over 42 million users. Some of the other popular games in Telegram are Gamee, which has 100 million users, and 1win Token, which has 22 million users.
Telegram also houses other popular tap-to-earn games like Hamster Kombat, PixelTap, TapSwap, Blum, Dogs, and Cats.
All Telegram tokens have crashed after their debut in the public market. For example, Hamster Kombat’s token has fallen by over 76% from its highest point. Similarly, Notcoin, DOGS, and PixelVerse have all fallen by over 50%.
The main reason why Catizen and other tap-to-earn tokens have crashed is that many holders have sold some or all of their tokens. Also, many traders likely have a good memory of the performance of all to-earn tokens after their hype dies. Tokens like Decentraland, Sandbox, and Axie Infinity have all plunged in the past few years.
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Catizen price analysis
CATI chart by TradingView
The 4H chart shows that the CATI token has been in a strong bearish trend in the past few days. It crossed the important support at $0.3921, its lowest swing on October 10 and 17. Moving below that point is a highly bearish sign.
Catizen has also moved below the 25-period moving average. It has also formed a small bearish flag pattern. Therefore, the price of Catizen will likely continue falling as sellers target the psychological point at $0.30.
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