Hamster Kombat: What’s Keeping HMSTR Price Below $0.1?

The HMSTR price looks unlikely to hit $0.1 anytime soon, considering that over 60% of the token’s supply was put in circulation following the Hamster Kombat airdrop. The HMSTR token also continues to witness significant selling pressure, which has led to a price drop of over 50% from its current all-time high (ATH).

What Is Keeping Hamster Kombat Below $0.1

The token’s circulating supply of 64.37 billion HMSTR is mainly keeping its price below $0.1. A rise to $0.1 means the Hamster Kombat will have a market cap of $6.43 billion. However, considering the crypto market’s total market cap, such a market cap for the crypto token is unlikely for now.

For the HMSTR price to attain such a market cap, the broader crypto market must experience exponential growth. For context, only the fifteen largest crypto tokens by market cap currently boast a market cap of $6.4 million and above. As such, it is unlikely that HMSTR will witness a price surge to $0.1 anytime soon.

Moreover, Hamster doesn’t have any predefined burn mechanism in place. As such, the token remains inflationary and will only become less valuable as more tokens are released into circulation. Upon launch, Hamster Kombat released a whopping 64% of its total supply of 100 billion HSMTR, 60% of which went to the community.

This was a bold move, considering that many of these community members were likely to dump their tokens upon receipt of their airdrop. This ultimately created a situation whereby the token’s supply exceeded its demand, contributing to its downward pressure upon launch. Despite its heavy popularity, the Hamster Kombat downtrend has continued.

The HMSTR price is currently down over 50% from its current ATH of $0.01004. The token could again witness a supply shock when season 2 of the Hamster airdrop ends. However, the season 2 airdrop campaign won’t end until Q1 of next year, meaning that the token’s price could achieve some stability before then.

HMSTR Price To Recover Like NOT Did?

Crypto analyst Crypto Hunter has raised the possibility of Hamster Kombat enjoying a similar price recovery as Notcoin. The NOT token fell by 80% following the Notcoin airdrop earlier this year. However, the token went on to record a 5x increase in price after its initial price decline.

The analyst’s accompanying chart showed a similarity between HMSTR’s and NOT’s price actions after their respective airdrops. Crypto Hunter believes that Hamster Kombat has the potential to grow and rise above $0.01.

The HMSTR token is still set to gain added utility since the Telegram-based game plans to launch new features that users will need the token to access. This could motivate current holders to hold on to their tokens and lead to new users purchasing HMSTR to access these gaming offerings.

At the time of writing, the HMSTR price is around $0.004887, up over 5% in the last 24 hours. However, trading volume is down by over 28%, with $79 million traded during this period.