The price of the Hamster Kombat (HMSTR) token is not expected to reach $0.1 anytime soon. Following the Hamster Kombat airdrop, more than 60% of the token supply has entered circulation, putting pressure on the price. HMSTR is facing a decline of over 50% from its all-time high.
What’s Keeping the Price of Hamster Kombat?
The circulating supply of the HMSTR token stands at 64.37 billion HMSTR, causing it to remain below $0.1. Rising to $0.1 would mean Hamster Kombat’s market cap would be $6.43 billion. However, considering the total market cap of the current crypto market, achieving such a market cap seems unlikely at the moment.
Can HMSTR Price Be Recovered?
For HMSTR to reach this market cap, the broader crypto market must experience significant growth. There are currently only fifteen major crypto tokens with a market cap above $6.4 billion. Therefore, it is considered unlikely that HMSTR will see a price increase of $0.1 anytime soon.
Additionally, Hamster Kombat does not have a specific burn mechanism. This causes the token to remain inflationary and decrease in value as more tokens are released into circulation. Hamster released 64% of the total 100 billion HMSTR at launch, with 60% distributed to the community.
This was considered a bold move considering that community members are likely to sell their tokens after receiving the airdrop. This caused the token supply to exceed demand, creating downward pressure on the price at launch. Despite its intense popularity, Hamster Kombat’s downward trend continues.
The token may experience a supply shock again when the second season of the Hamster airdrop ends. However, the token price is expected to stabilize for a while as the second season airdrop campaign will continue until the first quarter of next year.
Crypto analyst Crypto Hunter stated that Hamster Kombat could experience a price recovery like Notcoin.
Crypto Hunter presented charts showing similarities in the post-airdrop price movements of both tokens. In this vein, he thinks Hamster Kombat has growth potential and could rise above $0.01.
Those who are considering investing in the Hamster Kombat token should make their decision by taking into account the balance of supply and demand, market conditions and analyst comments.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
