The HMSTR token has faced challenges reaching the $0.1 price target, largely due to over 60% of its supply entering circulation after the Hamster Kombat airdrop. Significant selling pressure has led to a price drop exceeding 50% from its all-time high.
Several factors are keeping Hamster Kombat below the $0.1 mark. The large circulating supply of 64.37 billion HMSTR tokens is a primary obstacle. Reaching $0.1 would imply a $6.43 billion market cap, which seems unlikely given the current crypto market conditions. For context, only the top 15 cryptocurrencies currently have market caps above $6.4 billion.
Additionally, Hamster lacks a predefined token burn mechanism, making it inherently inflationary. The project released 64% of its 100 billion HMSTR supply at launch, with 60% going to the community. This bold move likely contributed to supply outpacing demand, putting downward pressure on the price.
Despite these challenges, some analysts see potential for a recovery similar to Notcoin’s (NOT) trajectory. NOT initially fell 80% post-airdrop but later achieved a 5x price increase. Crypto analyst Crypto Hunter has noted similarities between HMSTR and NOT price action patterns.
At press time, HMSTR is trading around $0.00479, up over 2% in 24 hours, though trading volume has declined by over 42%. While the path to $0.1 remains uncertain, some believe Hamster Kombat could surpass $0.01 if it follows a recovery pattern like NOT.
The upcoming conclusion of the Hamster airdrop season 2 in Q1 next year may impact token dynamics. However, the price could potentially stabilize before then. Investors should closely monitor market conditions and project developments as Hamster Kombat’s journey unfolds.
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