Notcoin, the viral Telegram tap-to-earn platform, is changing its strategy as demand for its platform and token retreats.
Notcoin (NOT) token price has seen a significant decline since June, when it peaked at $0.030. It has dropped by over 57% from its all-time high, bringing its market cap from over $2.68 billion to $1.28 billion.
Notcoin moves to Web3 as tap-to-earn loses momentum
Notcoin’s decline mirrors the performance of other altcoins that have pulled back in recent weeks. EOS (EOS) token has dropped by almost 40% from its highest point in June, while Hedera Hashgraph (HBAR) has fallen by 35% in the same period.
This performance reflects the risks that other tap-to-earn platforms like Hamster Kombat and TapSwap may face when they launch their airdrops. Hyped projects often lose momentum and users after a while. For example, move-to-earn tokens like StepN’s (GMT) and Sweatcoin’s (SWEAT) have all dropped from their all-time high.
Popular gaming platforms like Decentraland and Axie Infinity, which were once very popular, have also struggled to regain growth, according to Dappradar. Their market caps have dropped from $8.5 billion in 2021 to $580 million and from $9.7 billion to $845 million, respectively.
Notcoin is now betting on Web3 and Non-Fungible Token (NFT) gaming to reinvigorate growth. The developers are working on a story-driven game in partnership with Lost Dogs and Getgems, a leading TON-based NFT marketplace.
Users will play the game and earn the NOT token and another new game-based token, which they can convert into fiat currencies.
Notcoin will likely face three key challenges with this strategy. First, as other gaming networks like Axie Infinity and Gala Games have shown, maintaining high user engagement for an extended period is difficult, especially when the ecosystem’s token is not performing well.
Second, Notcoin may struggle to transition its active tap-to-earn players to the new story-driven game. Finally, there are signs that the NFT industry is struggling, as volume has continued falling.
Notcoin price could bounce back
Meanwhile, technical analysis indicates that the NOT price could bounce back in the near term. On the 4 hour chart, the token has formed a falling wedge chart pattern.
This wedge is nearing the confluence zone, which could trigger more upside. If this happens, the token could rebound to $0.0175, its highest point in July, which is about 37% above its Thursday levels.
Such a rebound would be triggered by the broader performance of the crypto industry, especially if Bitcoin rebounds above $70,000.