What Is Keeping Hamster Kombat Below $0.1

The token's circulating supply of 64.37 billion HMSTR is mainly what is keeping its price below $0.1. A rise to $0.1 means that the Hamster Kombat will have a market cap of $6.43 billion.

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The HMSTR token continues to trade below $0.1 due to its high circulating supply, which currently stands at 64.37 billion tokens out of a total supply of 100 billion. For the HMSTR price to reach $0.1, the Hamster Kombat would need to achieve a market cap of $6.43 billion, which is unlikely given the current size of the crypto market.

To put things into perspective, only fifteen of the largest crypto tokens by market cap have a market capitalization of $6.4 billion or more. Moreover, Hamster Kombat does not have a predefined burn mechanism, making the token inflationary and less valuable as more tokens are released into circulation.

At launch, Hamster released a massive 64% of its total supply of 100 billion HSMTR tokens, with 60% of the supply going to the community. This move was risky as many of these community members were likely to dump their tokens immediately after receiving their airdrop.

As a result, the token's supply quickly outpaced its demand, contributing to the downward price pressure the token faced from launch. Despite its immense popularity, the Hamster Kombat downtrend has persisted, with the HMSTR price currently down more than 50% from its all-time high of $0.01004.

The token may experience another supply shock once Season 2 of the Hamster airdrop concludes, but this won't happen until Q1 of next year, giving the token some time to stabilize before then.

Crypto analyst Crypto Hunter has suggested that Hamster Kombat could enjoy a price recovery similar to Notcoin. After the Notcoin airdrop earlier this year, the NOT token crashed by 80%. However, the token later managed to record a 5x increase in price from its initial low.

The analyst's chart shows a similarity between the price actions of both HMSTR and NOT following their airdrops, leading Crypto Hunter to speculate that Hamster Kombat could still rally and rise above $0.01.

At the time of writing, HMSTR price is around $0.00479, showing an increase of 2% over the last 24 hours. On the other hand, trading volume has decreased by more than 42%, with $78 million in trades during this period.

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