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Rising smartphone penetration fuels GameFi’s growth on Telegram

source-logo  invezz.com 7 h

Telegram, one of the fastest-growing messaging platforms, is quickly becoming a major GameFi (Game Finance) player.

With over 950 million active users globally, the platform has evolved from a simple messaging app into an ecosystem that fosters communities, businesses, and gaming experiences.

The launch of gaming projects on Telegram signals an exciting new chapter in the platform’s development, where players can earn real-world value while engaging in gaming.

GameFi, a combination of gaming and decentralized finance (DeFi), has taken the blockchain world by storm.

The concept of play-to-earn (P2E) gaming allows users to earn cryptocurrency or NFTs through gameplay, turning what was once purely entertainment into a lucrative activity.

According to CoinMarketCap, GameFi’s market capitalization reached $17.35 billion in early September.

While it was still below late July’s $20.8 billion, it was a notable rebound from August’s downturn.

As GameFi continues to grow, platforms like Telegram are becoming essential tools for game developers, particularly because of the simplicity and trust they offer to millions of users.

What is Telegram gaming, and why is it so appealing?

Telegram gaming refers to games built directly into the Telegram platform, allowing users to play without leaving the app. The integration of GameFi into Telegram leverages the platform’s existing user base and infrastructure, providing a seamless gaming experience.

Telegram’s user experience (UX) is one of its standout features.

The app is known for being user-friendly, highly secure, and offering fast, smooth navigation—all of which translate into an ideal environment for gaming.

Source: Coin98Analytics

Telegram’s design allows developers to integrate bots and mini-apps, giving users access to tap-to-earn games, meme coin economies, and more within the app.

These games typically have low barriers to entry and are designed for casual users, making them accessible to a broad audience.

Because Telegram is already a trusted platform for communication, finance, and community-building, users are more willing to engage with new games, further accelerating GameFi adoption.

The key elements of Telegram’s appeal in GameFi

  1. Incredible UX: Telegram’s interface is easy to navigate, with minimal clutter and a straightforward layout. This ease of use encourages engagement and makes the platform ideal for casual gaming experiences that don’t require heavy downloads or complex setups. A user can go from reading messages to earning tokens through games in seconds, thanks to seamless integration.
  2. Built-in trust: One of the most significant challenges for new GameFi projects is gaining user trust, particularly when it involves financial transactions like earning cryptocurrency. Telegram’s reputation as a secure, privacy-focused platform builds confidence among users, allowing them to feel safe interacting with games that incorporate DeFi elements.
  3. Viral sharing potential: Telegram’s design also makes it easy to share games and projects with other users. Channels, groups, and chats create a viral network effect where new games can spread rapidly, thanks to the app’s messaging infrastructure. A new game can quickly gain traction as users share their experiences with friends, boosting downloads and engagement.

How games on Telegram build traction fast

The ability for games to build massive traction on Telegram is rooted in the platform’s viral sharing mechanisms.

Game developers can use Telegram’s channels, bots, and chats to introduce new users to their games, creating an organic growth loop.

With its high level of engagement, Telegram allows users to share games, strategies, and achievements directly with their contacts, accelerating growth and interaction.

The onboarding process for games on Telegram is also remarkably simple. Unlike traditional gaming platforms, which require users to download apps, create accounts, and link wallets, Telegram games typically function with just a few clicks.

By leveraging bots and integrated payment systems, users can start playing and earning rewards almost instantly. This low friction is a game-changer for GameFi projects, enabling them to capture new users faster than ever before.

The developing world: a key driver for GameFi on Telegram

Another critical factor driving the rise of GameFi on Telegram is its growing user base in the developing world.

Regions in Africa, Southeast Asia, and Latin America are seeing rapid population growth, with more people coming online every year.

These areas also have high demand for mobile-first experiences due to the widespread use of smartphones as primary internet devices.

In many developing countries, traditional job markets are limited, and play-to-earn gaming offers a way to generate income.

For example, in the Philippines, thousands of people turned to games like Axie Infinity to make money during the COVID-19 pandemic.

The concept of earning real-world value from games resonates strongly in areas where economic opportunities are scarce.

Rise in smartphone ownership in developing countries has supported the play-to-earn phenomenon.

In 2018, 76% of people in advanced economies had a smartphone compared to 45% in emerging economies.

However, over the course of the last few years, Brazil, Indonesia and India have now become three of the top five smartphone markets in the world, with the Indian mobile market growing even faster than the US.

The smartphone penetration rate in India reached close to 71% by 2023.

The lightweightness of the Telegram app, along with its robust messaging features, and secure transactions, positions it to serve this demographic.

The platform doesn’t require high-end hardware, and its focus on privacy and freedom of expression makes it a natural fit for users seeking both entertainment and income-generation opportunities.

As more people in the developing world adopt Telegram, the platform’s potential as a hub for GameFi will only grow.

Telegram’s commitment to privacy and free speech

Telegram’s appeal is not limited to gaming enthusiasts or crypto investors—it’s also a haven for users who value privacy and free speech.

As more governments impose restrictions on communication platforms, Telegram has built a loyal following of users who appreciate its commitment to encryption and censorship resistance.

This dedication to privacy has made Telegram one of the few platforms trusted across various demographics, from activists to ordinary citizens.

As demand for privacy grows globally, particularly in countries where government surveillance is common, Telegram is expected to see continued growth in its user base.

According to analysts, this growth will likely feed into GameFi’s expansion, as more users turn to Telegram for both social interactions and financial opportunities.

The platform’s open stance on privacy makes it a reliable space for users to engage with cryptocurrency and decentralized gaming without fear of regulatory overreach.

Projects gaining traction on Telegram: tap-to-earn games and more

Several GameFi projects have already gained significant traction on Telegram, showcasing the platform’s potential for future growth.

Among the most popular are tap-to-earn games, where users can earn cryptocurrency simply by interacting with the game interface.

These games often involve simple mechanics, making them highly accessible and easy to understand.

One example is Hamster Kombat, a popular Telegram-based game wherein over 300 million players battle digital hamsters and earn rewards in tokens.

In addition to tap-to-earn games, meme coin ecosystems like DOGS have found a home on Telegram.

The viral nature of meme coins, combined with Telegram’s easy-to-use chat features, has allowed coins like DOGS to rapidly build large, engaged communities.

These projects thrive in Telegram’s environment, where users can quickly share news, strategies, and updates with their networks.

Developers also benefit from Telegram’s open-source API, which allows them to create custom bots and automate processes like token minting and game updates.

This flexibility has made it easier for GameFi projects to launch and scale quickly, while still offering unique user experiences.

David Zimmerman, an analyst at K33 Research argues that Telegram, along with a few independent developers, has done more to bring crypto to the mainstream than the $100 billion in venture capital invested in the space since 2014.

Through its support for and integration of the The Open Network (TON), Telegram is addressing the major bottlenecks in crypto adoption like poor UX, limited real-world utility and terrible distribution, Zimmerman adds.

Why this is just the beginning: Telegram as GameFi’s future

The current wave of GameFi projects on Telegram is likely only the beginning.

Analysts predict that once the dust settles on the US election and regulatory clarity increases, retail investors will flood the crypto market, driving even more growth in platforms like Telegram.

The business cycle, particularly in the tech and finance sectors, points to a peak in the next bull market by mid-2025, and GameFi projects are poised to be a significant part of that surge.

Moreover, as blockchain technology advances, the integration of AI, DeFi, and NFT features into Telegram-based games will unlock new possibilities.

Users could engage in more complex gameplay, build digital assets with real-world value, and participate in decentralized governance systems—all from within the Telegram app.

The GameFi ecosystem on Telegram will also benefit from the platform’s continued growth.

With more users seeking privacy, free speech, and financial independence, Telegram is expected to expand its reach into new markets.

As the platform grows, so will the number of GameFi projects looking to capitalize on its user base.

Telegram and GameFi’s unstoppable rise

Telegram’s evolution from a messaging app to a GameFi powerhouse is a testament to its versatility and the growing demand for decentralized gaming.

With its intuitive UX, built-in trust, and viral sharing capabilities, Telegram is the perfect platform for GameFi projects to flourish. The rise of tap-to-earn games and meme coins is just the start, as the platform positions itself to capture even more of the developing world’s growing digital economy.

As we approach the next peak in the crypto bull market, GameFi on Telegram is set to become a key player in the blockchain ecosystem.

With more users demanding privacy, free speech, and financial opportunities, Telegram’s future in GameFi looks incredibly promising.

Investors, developers, and players alike should keep a close eye on this dynamic space as it continues to grow and redefine what’s possible in decentralized gaming.

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