Introduction

Telegram trading bots are automated systems integrated within the Telegram messaging app that assist users in executing transactions on decentralized exchanges (DEXs). Since Telegram trading bots first got the attention of the crypto market in early 2023, their market share grew quickly and played an indispensable role on the market.

Basically, Telegram trading bots allow users to execute various trading functions by sending messages within Telegram. The process typically involves:

1. Entering a command in the Telegram bot channel.
2. Setting up a new wallet or connecting an existing wallet.
3. Funding the wallet with the provided address.
4. Executing different types of transactions (e.g., instant trading, sniping, copy trading etc).

Features of Telegram Trading Bots

Unlike the traditional interaction with decentralized applications (Dapp) on blockchains, Telegram trading bots provide a more accessible and convenient way for traders to interact with crypto markets. With trading bots, users can execute trades directly from their mobile devices without the need for complex interfaces.

Additionally, Telegram trading bots offer a variety of trading features other than the optimized trading experience. For instance, users can buy and sell tokens directly through Telegram with different trading strategies, such as take profit and stop loss. Token sniping is also a popular feature on Telegram trading bots for memecoin traders, where users can automatically buy a token once it’s listed. Another innovation in Telegram trading bots is copy trading. Bot users are able to emulate the moves of other experienced traders or market experts. To some extent, copy trading is ideal for beginners to trade crypto and it unlocks more trading with minimal market understanding.

Source: https://members.delphidigital.io/reports/telegram-bots-evaluating-cryptos-new-cash-cows

As Telegram trading bots continue to evolve, they become increasingly comprehensive and integrated. Some bots now offer additional features, such as wallet tracking and token analysis. These capabilities allow users to conduct quick due diligence on token distribution before making investment decisions.

The web2-like features make Telegram trading bots stand out as a nascent market category even in the bear market of early 2023. For the first time, crypto users can interact with blockchains seamlessly without token approvals and multi-step confirmations, making onchain crypto trading as simple as that in centralized exchanges. 

Overview of Bots’ Market Share

Currently, Telegram trading bots are playing a significant role on the market and have contributed to an increasing share of onchain DEX volume. To date, Telegram trading bots have a daily volume of over $100M across multiple blockchains with a cumulative total volume of around $30B. Over 2M users are onboarded through trading bots and more than 150M transactions are successfully executed on bot frontends.

Source: https://dune.com/whale_hunter/dex-trading-bot-wars 

Notably, due to the rise of memecoin and celebrity coin season on Solana, Solana is taking over 74% of user share with Ethereum and Base following with 17% and 6%, respectively.

Source: https://dune.com/whale_hunter/dex-trading-bot-wars 

Telegram trading bots is one of the fastest growing segments in the crypto industry. Back in 2023, there were only a few trading bots generating around $20M volume daily. In merely one year, there have been over dozens of trading bots, contributing to over $120M daily volume with peak daily volume of $700M.

Source: https://dune.com/whale_hunter/dex-trading-bot-wars 

Typically, Telegram trading bots impose a tax ranging from 0.5% to 2% on each successful transaction. This fee structure turns these bots into lucrative cash cows as more users join the platforms. To date, the total lifetime bot revenues have reached approximately $200M. At present, the collective daily fees across various Telegram trading bots amount to $611K. Among the competitors, BONKBot stands out as the most profitable, boasting revenues exceeding $69M and claiming a 35% share of the total bot revenue.

Source: https://dune.com/whale_hunter/dex-trading-bot-wars 

Notable Telegram Trading Bots

At present, there are a number of notable Telegram trading bots on the market. Among them, Unibot, Banana Gun, BONKBot and Trojan are the most popular ones across multiple blockchains.

Unibot

Unibot is a Telegram trading bot that enables users to trade crypto tokens on Uniswap directly from the Telegram messaging app. As the first generation of trading bots, Unibot allows multiple trading strategies, such as copy trade, limit order and MEV-resistance trading.

Unibot started to gain significant attention when Binance listed $PEPE, the most popular memecoin on Ethereum and quickly became the top player in the first wave of trading bot mania. The $UNIBOT token also outperformed most other tokens and made over 1000% hike to its ATH of $200.

Source: https://dune.com/whale_hunter/unibot-revenue

Banana Gun

Banana Gun is another amazing trading tool that will help users improve their trading skills via both Telegram client and WebApp frontend. In addition to the traditional functionalities, its standout features also include: anti-rug & reorg protection, scam & honeypot protection, as well as WebApp support.

Banana Gun catered to the needs of bot traders and quickly caught on after its launch. In particular, Banana Gun hit a volume ATH when it was deployed on multiple popular blockchains. At present, there are over 5000 new users onboarded on Banana Gun every week. What impressive work!

Source: https://dune.com/whale_hunter/banana-gun-bot

Banana Gun charges 0.5% for manual trading and limit orders, and 1% for snipings. So far, around 12k ETH and 55k SOL have been collected as protocol revenues, contributing to an annualized APY of 13.48% to $BANANA holders.

Source: https://dune.com/whale_hunter/banana-gun-bot

BONKBot

BONKBot is a Telegram trading bot specifically designed for Solana. BONKBot is a side project originating from the $BONK memecoin ecosystem. But since its launch, BONKBot has fundamentally changed how Solana traders engage with cryptocurrencies with its intuitive design and fluid trading process.

BONKBot is a powerhouse with a daily volume of $17M and a lifetime volume of over $7.1B. In addition, BONKBot has 10k daily active users with 388k lifetime users, establishing it as a leading Solana trading bot.

Source: https://dune.com/whale_hunter/bonkbot 

Interestingly, BONKBot revenue is designed for the $BONK buyback program and adding value to its native token, $BONK. Cumulatively, over 400B $BONK has been bought back and burned, demonstrating BONKBot's commitment to the long term growth of the $BONK ecosystem.

Source: https://dune.com/whale_hunter/bonkbot 

Trojan

Trojan is one of the ultimate onchain trading tools on Solana. It empowers users to trade like a pro trader and gain an edge over other traders. As a spinoff product of Unibot on Solana, Trojan will have a new token and airdrop the new token to $Unibot holders in the future.

Trojan's interface is similar to Unibot's style and provides a variety of new features for users, such as DCA trading. Currently, Trojan is one of the Top3 trading bots in terms of volume on Solana, with a flat daily volume of over $35M and a daily fee of $300k.

Source: https://dune.com/whale_hunter/trojan-trading-bot

Trojan on Solana has the most extensive referral system on chain, where both referees and their friends who use the referrals can reap the rewards. To some extent, the well designed referral system contributes to the rapid adoption of Trojan among onchain traders.

Source: https://docs.trojan.app/telegram-bot-user-guide/referrals

The Advantages and Concerns

Telegram trading bots unlock the new blockchain interaction experience with user friendly interface and fluid trading process. These bots execute trades automatically based on users' intent, thus saving time and efforts. They can also react swiftly to market movements, especially in volatile conditions. Moreover, the trading bots lower the crypto onboarding threshold and enhance the trading availability even when users are new to crypto. Besides, the trading bots play a significant role in managing multiple assets simultaneously on a variety of end devices.

However, Telegram trading bots also face several challenges when they get more adoption on the market. For instance, the initial user onboarding is complex and setting up and configuring bots may require some technical knowledge about crypto. Risk of bugs and glitches can be a big problem when the bots have software bugs or encounter issues with exchanges. What's worse is that malfunctioning bots may result in significant losses. Security and privacy issues also remain to be addressed.

Source: https://thedefiant.io/news/defi/ether-fi-releases-season-2-of-its-ethfi-token-airdrop

Outlook and Summary

Looking forward, there are several trends in the future development of Telegram trading bots. For example,

• Enhanced User Experience

The trading bots will likely lower the onboarding threshold and become more user-friendly, with intuitive interfaces and simplified commands. In the meantime, integration with other messaging platforms beyond Telegram could expand more accessibility.

Source: https://members.delphidigital.io/reports/telegram-bots-evaluating-cryptos-new-cash-cows

• Advanced Trading Strategies

The trading bots may incorporate more sophisticated trading algorithms, including sentiment analysis, arbitrage, and risk management. Machine learning and AI integration may enhance decision-making processes and winning odds.

• Security and Privacy

Developers may pay more attention to robust security measures to protect users’ funds and data. In terms of privacy, technologies like zero-knowledge proofs may be adopted to protect users' private information.

• Integration with More Chains and DeFi Protocols

More blockchains and DeFi protocols beyond simple swaps will be supported, allowing users to trade across different ecosystems seamlessly. Features like yield farming, lending, and staking may be introduced directly on users' mobiles.

In a nutshell, the future development of Telegram trading bots holds exciting possibilities. Though some of the trends are still speculative at the current stage, it's reasonable to be optimistic about the future growth of trading bot as a gateway for crypto mass adoption. 

Let's wait and see!