Telegram bots have been increasingly emerging as a new tool to get exposure to cryptocurrency markets and a number of related services.
The cumulative crypto trading volume associated with Telegram bots exceeded $190 million as of early August 2023, according to a new report by Binance’s research arm, Binance Research.
Crypto activity facilitated through Telegram bots has been specifically on the rise in recent months. On July 23, daily volumes of chatbot-enabled crypto trades hit a record high of $10 million, Binance Research analyst Jie Xuan Chua wrote in the report. User metrics also hit a record high in July, reaching more than 6,000 daily unique users.
In total, Telegram bots have collected more than 15,500 Ether (ETH), or about $28 million, in all-time revenue, Chua reported.
Just like common Telegram bots, cryptocurrency-enabled Telegram bots allow users to interact with certain programs to complete certain tasks by sending messages on the Telegram messenger. Such bots are often connected to peer-to-peer or decentralized cryptocurrency exchanges, enabling users to execute trades by using commands in the chatbot.
According to Chua, Telegram bots could potentially become an integral part of the cryptocurrency ecosystem, as they offer various types of crypto services, including trading, airdrop farming and automated token operations known as sniping. He added:
“By offering users a relatively seamless way to execute transactions, bots have the potential to carve out their own niche in the crypto ecosystem.”
Telegram’s recent sharp growth in activity related to Telegram’s crypto trading bots should be attributed to the surging prices of related tokens. The Unibot (UNIBOT) token, which serves as the governance token on the eponymous trading bot on Telegram, rallied as much as 400% by late July, hitting an all-time high of $199 on July 28.
According to Chua, UNIBOT was a key contributor to the recent burst of activity on Telegram trading bots. The token reportedly accounts for over 77% of the market in terms of its market capitalization.
The analyst suggested that it’s too early to tell if recent action in Telegram bots-enabled crypto activity suggests a trend reversal or “merely represent[s] a blip” before activity rallies again.
“Nonetheless, we will likely see continued developments, at least in the near future, as projects compete for market share,” Chua stated.
The analyst also called on users to conduct their own research before interacting with any Telegram bot. Considering the nascency of the sector, it’s essential for users to be aware of associated risks, including those related to the security of assets and smart contracts, he added.