Will Hamster Kombat [HMSTR] break $0.01 again despite centralization risks?

Hamster Kombat, a Web3 game tied to the HMSTR token, has seen a sharp decline in active users
To ensure long-term consistency, it needs to address these challenges

As an analyst with over 15 years of experience in the tech and gaming industry, I find myself intrigued by Hamster Kombat (HMSTR) and its recent performance. While the game has seen a significant drop in active users – a common challenge in the highly competitive Web3 gaming space – it’s encouraging to see such positive sentiment from the community.

Regarding the Hamster Kombat [HMSTR] token, even though there’s been a decrease in active users, the overall attitude within the community remains predominantly optimistic. Interestingly, based on survey results from 87,689 participants, as much as 73% indicated a positive outlook for the game, while only 27% showed any signs of pessimism.

Adding to the optimism, daily spot trading volume skyrocketed to $5.3 billion, with perpetual trading volume hitting $4 billion. The HMSTR team also highlighted a growing user base, reporting 11 million token holders.

Despite achieving these significant milestones, Hamster Kombat hasn’t been immune to daily market swings. In fact, it experienced a 5% drop in value just yesterday, leading experts at AMBCrypto to reassess its future prospects.

Hamster Kombat risks stagnation if key issues persist

remarkably, HMSTR experienced a significant decrease in its active monthly users, going from 300 million in August down to 41 million by November – a drop of 86%

Data analyzed on the blockchain by IntoTheBlock showed a trend of decreasing active addresses, mirroring previous observations. This figure reached over 700,000 at the end of September, only to fall significantly to around 20,000 by mid-November.

As a crypto investor, I’ve noticed that the token’s price trajectory mirrored a familiar pattern. Back in mid-September, it peaked at $0.01, but by November, it dipped dramatically to $0.0022. However, since then, there have been promising indications of recovery. At the moment I’m writing this, the price has climbed back up to $0.004400.

Source : Santiment

The strong upward trend of Bitcoin, approaching what’s considered a ‘risky’ price level, has encouraged investors to move their earnings into less capitalized tokens. Given this situation, HMSTR could emerge as a compelling option.

While community backing is essential, it doesn’t guarantee lasting consistency on its own. To maintain forward progress, HMSTR needs to provide something novel and captivating that will serve as a magnet for drawing fresh participants in this intensifying competitive environment.

To keep Hamster Kombat exciting and engaging, it’s crucial that the game continually develops, providing fresh content to entice newcomers and keep current players hooked.

If the project doesn’t tackle its issues with keeping users engaged, it might find itself struggling in a rapidly advancing Web3 gaming market.

Incentives needed to retain its existing user base

According to a recent analysis by AMBCrypto, there’s a large amount of HMSTR tokens in the hands of just 11 ‘whales’, who collectively own around 85% of the entire Hamster Kombat token supply.

For HMSTR to thrive in the long run, keeping an eye on their behavior becomes vital. Lately, we’ve observed a decrease in purchases by whale investors, with just two occasions where they showed aggressive interest in HMSTR.

Source : IntoTheBlock

Both times, this action took place as Bitcoin experienced a bull market surge. This situation served as a significant motivator for the ‘whales,’ and it also boosted Hamster Kombat to recover from a downturn and surpass its $0.004 resistance level.

Read Hamster Kombat’s [HMSTR] Price Prediction 2024-25

Although this development indicates a positive trend for Hamster Kombat, it also underscores its concentration. This centrally controlled structure could lead to dramatic price fluctuations if these ‘whale’ investors choose to sell a large amount of their HMSTR tokens.

If the network manages to keep retail engagement and halt the decline in active users, it might become easier for Hamster Kombat to regain its previous high of $0.01. However, considering the current situation, it seems that temporary profits linked with Bitcoin’s bull market are more probable in the near future.

2024-11-16 10:15

Hamster Kombat risks stagnation if key issues persist

Incentives needed to retain its existing user base

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