Cryptos experience brutal fluctuations that make and break fortunes in the space of a few hours. Today, one project is attracting all the attention: Hamster Kombat (HMSTR). Despite an explosive start thanks to a generous but still poorly organized airdrop, the token is struggling to exceed the symbolic threshold of $0.1.
An excess of supply which blocks the rise of the HMSTR
The key factor behind HMSTR being stuck below $0.1 is its massive supply. At launch, 64% of the 100 billion tokens were released into circulation, leading to immediate inflationary pressure. Thus, HMSTR saw a fall of more than 50% from its all-time high of $0.01004. This situation has been amplified by the lack of token burning mechanisms, a tool often used to reduce supply and stabilize prices. The abundance of tokens available directly slowed the price progression.
Additionally, this oversupply was accompanied by strong selling demand from initial airdrop recipients. Indeed, 60% of the total supply was distributed to the community, a large part of which decided to sell their tokens quickly, which aggravates the drop in price. The airdrop, although popular, has created an imbalance between supply and demandwhich does not allow the HMSTR to take off on the market. This dynamic of excess supply remains one of the major obstacles to the valuation of the token.
The uncertainties linked to season 2 of the airdrop
However, a new challenge awaits HMSTR as the end of Airdrop Season 2 approaches, scheduled for the first quarter of next year. The HMSTR could face further downward pressure at the end of this second campaign. As this second airdrop phase ends, the injection of a new wave of tokens risks once again amplifying the selling pressure on the market. Such a mechanism could further delay any chance of a meaningful recovery.
However, some investors remain optimistic. They point to the recent trajectory of Notcoin (NOT), which managed to rebound after an 80% fall following its own airdrop. Could HMSTR follow the same path? A similar scenario is possible if efforts are made to limit inflation and encourage increased demand. But at this stage, the outlook remains uncertain, with fluctuations expected in the short term before a potential stabilization of the market.
As HMSTR, the tap-to-earn game, continues to struggle to cross the $0.1 threshold, the near-term outlook remains mixed. The overabundance of supply, combined with the absence of inflation control mechanisms, weighs heavily on its performance. However, examples of rebounds in other cryptos, such as NOT, suggest potential for recovery, provided adjustments are made to support demand.
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