Cryptos experience sharp fluctuations that make and break fortunes in just a few hours. Today, one project is attracting all the attention: Hamster Kombat (HMSTR). Despite explosive beginnings thanks to a generous but poorly organized airdrop, the token struggles to exceed the symbolic threshold of $0.1.
An excess of supply that blocks the rise of HMSTR
The key factor explaining the blocking of HMSTR below the $0.1 mark lies in its massive supply. At launch, 64 % of the 100 billion tokens were put into circulation, leading to immediate inflationary pressure. Thus, the HMSTR has seen a decline of more than 50 % from its all-time high of $0.01004. This situation was amplified by the absence of token burning mechanisms, a tool often used to reduce supply and stabilize prices. The abundance of available tokens has directly hindered the price progression.
Moreover, this excess supply was accompanied by strong selling demand from the initial airdrop beneficiaries. Indeed, 60 % of the total supply was distributed to the community, a large portion of which decided to sell their tokens quickly, aggravating the price decline. The airdrop, while popular, created an imbalance between supply and demand, preventing HMSTR from taking off in the market. This dynamic of excess supply remains one of the major obstacles to the token’s valuation.
Uncertainties related to the second season of the airdrop
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</script>However, a new challenge awaits HMSTR with the approaching end of the second season of the airdrop, scheduled for the first quarter of next year. HMSTR may face new downward pressure at the end of this second campaign. As this second phase of the airdrop ends, the injection of a new wave of tokens is likely to once again amplify selling pressure on the market. Such a mechanism could further delay any chance of a significant recovery.
However, some investors remain optimistic. They point to the recent trajectory of Notcoin (NOT), which managed to bounce back after an 80 % drop following its own airdrop. Could HMSTR follow the same path? A similar scenario is conceivable 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 potential market stabilization.
As HMSTR, the tap-to-earn game, continues to struggle to exceed the threshold of $0.1, short-term prospects remain 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, like NOT, suggest potential recovery, provided adjustments are made to support demand.
