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

Can Hamster Kombat [HMSTR] Reach $0.01 Again Despite Centralization Concerns?

Despite a notable decrease in the number of active participants, the general outlook for the Hamster Kombat [HMSTR] token remains largely positive within the community. Statistics reveal that out of 87,689 voters, 73% expressed bullish sentiments towards the game, while only 27% displayed bearish views.

Further boosting the optimism, the daily spot trading volume surged to $5.3 billion, and the perpetual trading volume reached $4 billion. Additionally, the HMSTR team highlighted an expanding user base, reporting a total of 11 million token holders.

Nevertheless, these achievements have not shielded the token from market volatility. Hamster Kombat experienced a 5% value drop over the past day, prompting analysts at CryptoCrypto to closely analyze its long-term prospects.

Challenges Facing Hamster Kombat’s Growth Trajectory

An intriguing development is the significant decline in the number of active monthly users for HMSTR, plummeting from 300 million in August to 41 million in November – marking an 86% decrease.

Insights from on-chain data provided by IntoTheBlock reflected a similar downturn in active addresses. The figure peaked at over 700,000 in late September, only to dwindle to slightly above 20,000 by mid-November.

Following a comparable pattern, the token’s price saw a decline. After hitting its all-time high of $0.01 in mid-September, HMSTR fell to $0.0022 by November. Nonetheless, recent indications suggest a recovery as it climbed to $0.004400 at the time of this report.

This positive upswing has been influenced by Bitcoin approaching a price level categorized as ‘high-risk,’ prompting investors to reallocate profits into low-cap tokens. This could position HMSTR favorably as a potentially competitive player.

However, sustaining momentum solely on community backing poses challenges for long-term consistency. To maintain its forward movement, HMSTR must introduce innovative and captivating features to attract new participants in this increasingly fierce environment.

Therefore, for Hamster Kombat to uphold its momentum, the game must evolve by offering engaging experiences to draw in new players while retaining its current user base.

Addressing the hurdles related to user retention is crucial for preventing stagnation in a progressively cutthroat Web3 gaming landscape.

Implementing Incentives to Retain the Current User Base

Another analysis by CryptoCrypto highlighted a considerable concentration of HMSTR tokens among whales, with 11 major holders collectively possessing about 85% of Hamster Kombat’s overall supply.

Consequently, monitoring their activities will be pivotal for HMSTR’s enduring success. Recent observations indicate a visible decline in accumulation, with only two notable instances of aggressive HMSTR purchases by whales.

In both scenarios, these actions coincided with Bitcoin undergoing a bullish run, offering significant incentives for whales while assisting Hamster Kombat in bouncing back from a slump and breaching the $0.004 resistance.

While this trend is encouraging, it also sheds light on the centralized nature of Hamster Kombat, rendering it susceptible to drastic price fluctuations if these major holders decide to dispose of a substantial portion of their HMSTR tokens.

Therefore, unless the network sustains retail interest and prevents further declines in active users, achieving a bullish surge back to $0.01 for Hamster Kombat could prove challenging. At present, short-term gains propelled by Bitcoin’s bullish momentum seem more plausible.