- Hamster Kombat, a Web3 game tied to the HMSTR token, saw a sharp drop in active users
- To ensure long-term consistency, it must address these challenges
Despite a significant drop in the number of active users, community sentiment towards the Hamster Kombat (HMSTR) the token remains extremely positive. In fact, according to data73% of 87,689 voters were optimistic about the game, while only 27% expressed bearish sentiments.
Adding to this optimism, daily spot trading volume soared to $5.3 billion, with perpetual trading volume reaching $4 billion. The HMSTR team also highlighted a growing user base, reporting 11 million token holders.
However, these milestones have not protected the token from market fluctuations. Hamster Kombat saw a 5% drop in value over the past day, prompting analysts at AMBCrypto to examine its long-term potential.
Hamster Kombat Risks Stagnation If Key Problems Persist
Interestingly, HMSTR saw a sharp decline in monthly active users, from 300 million in August to 41 million in November – a drop of 86%.
On chain data from IntoTheBlock revealed a similar drop in active addresses. It peaked at more than 700,000 in late September, before falling to just over 20,000 in mid-November.
The price of the token followed a similar trend. From its all-time high of $0.01 in mid-September, HMSTR fell to $0.0022 in November. However, it has shown signs of recovery since, rising to $0.004400 at the time of writing.
Source: Santiment
This bullish momentum has been fueled by Bitcoin approaching a price range considered “high risk,” prompting investors to redistribute profits into lower-cap tokens. This may position the HMSTR as a promising competitor.
However, community support alone will not guarantee long-term consistency. To maintain momentum, HMSTR must offer something innovative and engaging which will be key to attracting new entrants to this increasingly competitive space.
Therefore, for Hamster Kombat to maintain its momentum, the game must evolve, providing experiences to attract new players and retain its existing base.
Without resolving user retention issues, the project risks stagnating in an increasingly competitive Web3 gaming space.
Incentives needed to retain its existing user base
Another report from AMBCrypto highlighted a significant concentration of HMSTR tokens among whales, with 11 whales holding approximately 85% of Hamster Kombat’s total supply.
Therefore, monitoring their activity will be crucial to the long-term success of HMSTR. Recently, there has been a notable decline in accumulation, with only two instances where whales have aggressively purchased HMSTR.
Source: DansLeBlock
In both cases, this activity coincided with Bitcoin recording a bull run. These cases provided a major boost for the whales, while helping Hamster Kombat bounce back from a slump and break the $0.004 resistance.
Read Hamster Kombat (HMSTR) Price Prediction 2024-25
While this is a bullish sign, it also highlights Hamster Kombat’s centralization. This makes it vulnerable to large price swings if these whales decide to dump a significant portion of their HMSTR tokens.
So, unless the network retains retailer interest and prevents further declines in active users, it will be difficult for Hamster Kombat to target a parabolic return to $0.01. For now, short-term gains generated by Bitcoin’s bull rally seem more likely.
