The price of the HMSTR token remains below the $0.1 mark, primarily due to the large circulation of tokens following the #HamsterKombat airdrop.
Significant Price Drop After the Airdrop
With more than 60% of the total token supply distributed through the airdrop, it is unlikely that the price of HMSTR will reach $0.1 anytime soon. The token faces significant selling pressure, which has led to a drop of over 50% from its all-time high (ATH).
What Keeps Hamster Kombat Below $0.1
The primary factor keeping HMSTRâs price low is the large circulating supply of 64.37 billion tokens. If the price were to reach $0.1, the market capitalization would have to grow to $6.43 billion, which is almost impossible under the current market conditions.
For HMSTRâs price to achieve such a market cap, the broader crypto market would need to experience significant growth. To put it into perspective, only the top fifteen #Cryptocurrencies by market capitalization currently have a market cap over $6.4 billion, making a substantial price increase for HMSTR very unlikely.
Lack of Burn Mechanism and Inflationary Nature of the Token
Another issue is that Hamster Kombat does not have any token burn mechanism. This makes the token inflationary, meaning it becomes less valuable as more tokens are released. After the launch, 64% of the total supply of 100 billion tokens was put into circulation, with 60% distributed to the community.
Many community members likely sold their tokens quickly after receiving the airdrop, leading to an excess of supply over demand, which further contributed to downward price pressure. Despite its initial popularity, Hamster Kombat continues to follow a downward trend.
Future Price Stability Expected
Currently, $HMSTR is more than 50% below its ATH of $0.01004. The token could experience a supply shock once the second season of airdrops concludes. However, this season will continue until the first quarter of next year, meaning the token may find some price stability in the meantime.
Potential Price Increase for HMSTR?
Analyst Crypto Hunter points out that Hamster Kombat could experience a similar price increase to Notcoin. After its airdrop, the NOT token dropped by 80%, but later its price surged fivefold. According to Crypto Hunter, Hamster Kombat could potentially rise above $0.01.
At the time of writing, HMSTR was priced at around $0.00479, up more than 2% in the past 24 hours, although the trading volume had decreased by over 42%.
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