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

The most hyped Telegram tokens experienced a sharp comeback a few weeks after their airdrop and exchange listing.

RabBitcoin (RBTC), the token of the Rocky Rabbit ecosystem, fell to $0.0000037 from its September high of $0.000007. Its market value decreased from $63 million to $47 million. Popular cat-themed game Catizen (CATI) fell from $1.1974 to $0.4, increasing its value to $84 million.

Meanwhile, Dogs (DOGS), another popular Telegram cryptocurrency, fell from $0.0011 in September to $0.00065.

Other tokens such as Hamster Kombat and Notcoin have also struggled with sell-offs costing their holders billions of dollars. Toncoin (TON), which powers the TON Blockchain, has also entered a deep bear market, falling over 43% from its high this year.

Telegram’s game excitement has decreased

Telegram’s win-win and gaming tokens disappointed many users who accumulated millions of coins before the airdrop. Dogs has over 50 million users, while Catizen and Rocky Rabbit have 42 million and 30 million respectively.

As previously reported on Hamster Kombat, CATI, DOGS, and RBTC dropped due to increased sales from people who accumulated tokens before the airdrop. In most cases, “to-be-earned” token holders sell after the airdrop to avoid the initial drop.

This is common in most airdrops. For example, the Wormhole token has fallen over 84% from its list price despite its strong utility. ZkSync also fell by double digits.

This sell-off is also driven by broader sentiment in the crypto market. The crypto fear and greed index moved to the fear zone of 37 as most cryptocurrencies entered a bear market. While Bitcoin fell to $60,600, the total market value of all cryptocurrencies fell to $2.1 trillion.

Additionally, these Telegram tokens face the challenge of keeping users engaged as reward tokens continue to dwindle.

This is a major reason why most win-win networks that gained popularity in 2021 are losing traction. Data from DappRadar shows that Notcoin has 137 unique active wallets in the last 30 days.

Catizen UAW by dAppRadar

While Catizen had 1.42 million unique active wallets in the last 30 days, this number has decreased significantly in recent days. The same trend occurred in other games such as Catizen and Hamster Kombat.