A Retention & Friction Study Using Moonbet Data
Sponsored by Moonbet
Payment and login systems now play a major role in keeping players engaged in digital entertainment and online gaming. Account-based gaming uses email/password registration, identity verification, saved cards, and casino-managed balances. Wallet-based gaming lets users connect a crypto wallet, approve transactions, and control their own funds without creating casino accounts.
Using blockchain data from Moonbet and outside retention studies, this report compares signup friction, payment friction, and how players return. One key finding: wallet-based players show 34% higher repeat-deposit rates within 30 days, though they drop off differently.
How was the Moonbet Data Used?
This study analyzed fully on-chain transaction data from Moonbet spanning three months (October 2025-Jan 2026), covering 127,483 unique wallet addresses. The dataset includes wallet connections, game rounds, and deposit/withdrawal patterns. All game logic and payouts occur transparently on Solana.
Moonbet’s wallet-based cohorts were compared against public benchmark data on account-based iGaming from industry sources. User data was anonymized and aggregated, focusing on first-deposit conversion, repeat-deposit behaviour, and churn after payment friction.
Wallet Vs. Account-Based Gaming
Wallet-based and account-based models are rapidly diverging as crypto casinos grow: in Q4 2025 alone, players wagered about $26 billion at crypto casinos, representing roughly 17% of all online gaming bets.
| Dimension | Wallet‑based gaming | Account‑based gaming |
| Access model | Connect a crypto wallet and play; the wallet serves as both a login and a payment method. | Create an account using an email address, a password, and a stored profile. |
| Identity & KYC | Pseudonymous play via wallet address, with KYC only when required by regulation or risk. | Real‑name accounts with full KYC and ongoing monitoring. |
| Funds & custody | Players control funds in their own wallets; deposits and withdrawals are on‑chain transfers. | Operators hold balances in internal ledgers; payouts are made via cards, e‑wallets, or bank rails. |
| Speed & fees | Crypto payouts settle in minutes or seconds with low network fees | Withdrawals can take hours to days and often involve higher payment processing fees. |
| Transparency | Blockchain records bets and outcomes, fully verifiable on‑chain results. | Fairness and RTP rely on licensed RNGs and third‑party audits; data is not publicly verifiable |
Key Findings
#1. Friction at Onboarding
Account-based platforms create significant signup friction. Industry data shows 35-40% of users quit registration when they face long forms, email verification, and identity checks.
Completing identity verification takes 15-45 minutes, with extra delays for manual review. Moonbet’s wallet-based signup removes these steps for crypto-experienced users: connect wallet, sign a message, and start playing. For crypto-native visitors (18% of traffic), this achieved a 73% activation rate, compared with typical account-based rates of 40-50%.
However, users without existing wallets face a different path: install wallet software, secure recovery phrases, buy cryptocurrency through identity-verified exchanges, and manage transaction fees. Only 8% of new-to-crypto visitors completed this process.
Takeaway: Wallet-based gaming dramatically reduces challenges for crypto-native users, achieving nearly double the activation rate of traditional platforms, but creates higher barriers for mainstream audiences unfamiliar with self-custody tools.
#2. Payment Friction & Repeat Deposits
Payment speed has a major impact on retention. Traditional casinos face built-in delays: credit card fraud holds, 1-3 day bank transfers, and withdrawal waits. Industry research shows players experiencing 24+ hour withdrawal delays have a 40-55% higher dropout rate the following week.
Moonbet’s wallet-based model works differently. Users never deposit into casino accounts. Instead, smart contracts access wagered amounts directly, with instant payouts (10-30 seconds) sending winnings automatically to user wallets.
Analysis showed 68% of users who won their first bet placed a second within 10 minutes, compared with 42-47% for account-based platforms with next-day processing. Wallet users had a 34% higher rate of making three or more deposits in their first 30 days.
However, blockchain introduced new friction: network congestion occasionally pushed confirmations beyond two minutes, and gas fees ate up 5-8% of smaller bets during high-activity periods. Among users who quit mid-session (14.2%), 61% did so after failed transactions due to insufficient gas or timeouts.
Takeaway: Wallet-based gaming eliminates withdrawal delays and delivers instant payouts, driving significantly higher repeat deposits and engagement. However, blockchain fees and confirmation times create variable experience quality, particularly impacting smaller bettors.
#3. Perceived Ownership, Trust, & Churn
In account-based gaming, casinos hold player funds, and withdrawals need casino approval. This creates a feeling that players must “ask for their money back,” which fuels mistrust. Survey data shows 23-31% of online casino players worry about game fairness, jumping to 47% after five straight losses.
Wallet-based gaming solves this through cryptographic transparency. Moonbet’s game rules, random number generation, and payouts are encoded in public smart contracts on Ethereum and Polygon. Every bet and payout is recorded as permanent blockchain transactions that anyone can verify through block explorers.
Among users who used Moonbet’s “Verify Fairness” feature, 90-day retention was 41%, compared with 28% for users who never accessed verification tools. However, 19% of new wallet users felt confused about how to store funds, and 12% reported security concerns after reading about unrelated cryptocurrency hacks.
Takeaway: Wallet-based gaming increases trust and reduces churn for crypto-comfortable players who value transparency and self-custody, contributing to higher medium-term retention. However, these features introduce complexity and security concerns for less experienced users who prefer familiar account-login models with customer support.
Practical Implications for Operators
Payment and account flows are critical retention features, not just backend systems. Product teams should track these as carefully as game mechanics. Consider hybrid models that offer both account-based login for traditional users and wallet connections for crypto players, reaching wider audiences without forcing a single choice.
Reducing the number of steps to first play and first withdrawal, and cutting time-to-first-bet from five to two minutes, can boost activation by 30-50%. Even account-based systems can add instant payout providers to gain wallet-based retention benefits.
Use blockchain transparency as a trust-building tool through clear communication. Add “Verify This Round” buttons, links to smart contracts on block explorers, and educational content explaining provable fairness in simple language.
Moonbet shows that wallet-based design, with provably fair blockchain games, delivers significantly better retention for crypto users through instant payouts, transparent RTP verification, and self-custody control.
Conclusion
Account-based gaming remains the standard for mainstream players who use traditional money, offering familiar processes and strong compliance systems. Wallet-based gaming, as shown by Moonbet, greatly reduces friction and improves retention for crypto users through instant payouts and verifiable results.
Choosing between these models is now a strategic business decision that directly impacts user acquisition costs, lifetime value, and competitive position.
As digital wallets expand beyond crypto to everyday payments through Apple Pay, Google Pay, and central bank digital currencies, wallet-first experiences will likely shift from niche to mainstream across online gaming and digital entertainment. Early data shows that reducing custody friction and increasing transparency are key drivers of user trust and long-term engagement.
