The price of the HMSTR token has remained below $0.1, largely due to its high circulating supply following the Hamster Kombat airdrop. Despite its popularity, the token has faced significant selling pressure, leading to a sharp price decline.
Why HMSTR Remains Below $0.1
One of the main reasons the HMSTR price stays below $0.1 is its massive circulating supply of 64.37 billion tokens. To hit the $0.1 mark, the market cap would need to reach $6.43 billion, which seems unrealistic given the current size of the crypto market. For comparison, only the top 15 largest cryptocurrencies by market cap exceed $6.4 billion, making it unlikely that HMSTR will hit this milestone anytime soon.
Furthermore, Hamster Kombat does not have a burn mechanism in place to reduce supply. Without this, the token remains inflationary, meaning its value will likely decrease as more tokens enter the market. Upon launch, Hamster Kombat released 64% of its 100 billion token supply, with 60% going directly to the community, creating an oversupply and downward pressure on the price.
Hamster Kombat Faces Selling Pressure
Following the initial airdrop, many recipients sold their tokens, further driving down HMSTR’s price. Currently, the token has dropped more than 50% from its all-time high of $0.01004. Another potential supply shock could occur when season 2 of the Hamster airdrop ends, but this won’t happen until Q1 of next year. Until then, there is hope the price may stabilize.
Can HMSTR Recover Like Notcoin?
Crypto analyst Crypto Hunter suggests that Hamster Kombat may recover similarly to Notcoin (NOT). After an 80% drop following its airdrop, NOT saw a 5x price increase. The analyst sees a similar pattern in HMSTR’s price action, suggesting it could rise above $0.01.
Additionally, HMSTR is expected to gain more utility in the near future. As Hamster Kombat launches new features in its Telegram-based game, users will need HMSTR to access them, which could increase demand and motivate holders to keep their tokens.
HMSTR’s Current Price and Market Activity
At the time of writing, HMSTR is trading around $0.004887, up 5% in the last 24 hours. However, trading volume has decreased by 28%, with around $79 million traded in the same period.
