Here’s why RabBitcoin, Catizen, and Dogs tokens have plunged

Many highly hyped Telegram tokens are experiencing sharp declines just weeks after their airdrops and exchange listings. For instance, RabBitcoin (RBTC), part of the Rocky Rabbit ecosystem, has plummeted to $0.0000037 from a September high of $0.000007, resulting in a market cap drop from over $63 million to $47 million. Similarly, Catizen (CATI), a cat-themed game token, has crashed from $1.1974 to $0.40, bringing its valuation down to $84 million.

Dogs (DOGS), another popular Telegram cryptocurrency, has fallen from $0.0011 in September to $0.00065. Other struggling tokens include Hamster Kombat and Notcoin, which have collectively seen billions of dollars lost in value. Toncoin (TON), powering the TON Blockchain, has also entered a bear market, declining over 43% from its peak this year.

The excitement surrounding Telegram’s tap-to-earn and gaming tokens has diminished, disappointing many users who accumulated large quantities before the airdrop. With over 50 million users for Dogs and 42 million for Catizen and Rocky Rabbit, many early holders are now selling their tokens to avoid losses, a common trend seen in airdrop scenarios. For example, the Wormhole token has seen an 84% drop from its listing price, and ZkSync has also fallen significantly.

The broader sentiment in the crypto market is contributing to this sell-off, as the crypto fear and greed index has dipped into the fear zone at 37. Bitcoin is trading around $60,600, and the total market cap of cryptocurrencies has shrunk to $2.1 trillion.

Additionally, these Telegram tokens face challenges in maintaining user engagement as their reward tokens continue to decline. This difficulty is a key reason many play-to-earn networks that were popular in 2021 have lost momentum; data from DappRadar shows Notcoin had only 137 unique active wallets in the last 30 days.

While Catizen previously boasted 1.42 million unique active wallets in the last 30 days, that number has seen a significant decline in recent days. This trend mirrors the struggles faced by other games like Hamster Kombat, where user engagement has also dropped sharply. As interest wanes and token values fall, many players appear to be disengaging from these platforms, highlighting the challenges that tap-to-earn and play-to-earn models are currently facing in retaining their user base.