The HMSTR token continues to struggle, remaining under the $0.1 mark primarily due to its substantial circulating supply, particularly following the recent Hamster Kombat airdrop.
Key Points:
The HMSTR price currently lingers below $0.1, hampered by a significant circulating supply.
The token has declined by over 50% from its all-time high (ATH), but analysts suggest a potential recovery akin to that of Notcoin (NOT).
The HMSTR price is unlikely to reach the $0.1 threshold in the near future, as over 60% of its total supply entered circulation after the Hamster Kombat airdrop. The token has faced considerable selling pressure, resulting in a price drop exceeding 50% from its ATH.
Supply Dynamics and Market Cap Challenges
The circulating supply of 64.37 billion HMSTR is a primary factor keeping its price stagnant. For HMSTR to hit the $0.1 target, it would require a market capitalization of $6.43 billion, a feat that appears improbable given the current state of the cryptocurrency market. Presently, only the top fifteen cryptocurrencies boast market caps exceeding $6.4 million, indicating that substantial growth in the broader market is necessary for HMSTR to reach this valuation.
Furthermore, Hamster Kombat lacks a defined burn mechanism, perpetuating an inflationary nature. As more tokens are released into circulation, their value may diminish. Upon its launch, Hamster Kombat released 64% of its total supply of 100 billion HMSTR tokens, with 60% distributed to the community. This strategy posed risks, as many community members were likely to sell their airdropped tokens, creating a supply surplus that overwhelmed demand and led to a downward price trend despite the token’s popularity.
Future Price Recovery Potential
Currently, the HMSTR price is down over 50% from its ATH of $0.01004. Analysts suggest that the token could experience a supply shock when Season 2 of the Hamster Kombat airdrop concludes, scheduled for Q1 of next year. This timeline implies that the token may stabilize before then.
Crypto analyst Crypto Hunter has speculated that Hamster Kombat could see a recovery similar to Notcoin, which plummeted by 80% after its airdrop but later rebounded with a fivefold price increase. The analyst’s observations of the price trajectories of both HMSTR and NOT suggest potential for upward movement.
The HMSTR token is poised to gain additional utility as the Telegram-based game plans to introduce new features that will require the token for access. This development could incentivize current holders to retain their tokens while attracting new users eager to participate in the gaming offerings.
As of now, HMSTR is priced around $0.004887, reflecting a 5% increase in the last 24 hours. However, trading volume has decreased by over 28%, totaling $79 million during the same period.
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