Hamster Kombat token crashed to a record low on Thursday, capping the downfall of one of the most prominent players in the tap-to-earn industry.
Hamster Kombat (HMSTR) plunged to $0.0010, down 89% over the past year. The token’s market capitalization has collapsed from over $437 million in September to just $67 million today.
HMSTR’s crash came as many holders capitulated and sold their tokens. Nansen data shows exchange balances have increased by 13% over the past 30 days, rising to over 17.86 billion HMSTR. A rise in exchange balances typically indicates that investors are moving tokens from self-custody to centralized platforms to sell.
Additional on-chain data shows that the number of HMSTR holders dropped from over 300 million at its peak to just 672,200 today. Most exited as the token collapsed and user activity on its mini app declined sharply following its token generation event.
Demand also fell in the derivatives market. Futures open interest for HMSTR dropped to $30 million on Thursday, down from this month’s high of $60 million.
At the same time, Hamster Kombat’s funding rate sank to a record low of minus 0.06%. A negative funding rate indicates that traders are paying to maintain short positions, signaling expectations of further downside.
HMSTR funding rate | Source: CoinGlass
Hamster Kombat’s crash reflects a broader trend among “to-earn” tokens. Other tap-to-earn tokens, notably Notcoin (NOT), haveplunged after its token-generation event.
HMSTR price technical analysis
HMSTR price chart | Source: crypto.news
The eight-hour chart shows HMSTR peaked at $0.0029 in April and formed a double-top pattern, with a neckline at $0.002438, the swing low from May 6.
The token has since broken below key support at $0.001460, its lowest level in February. Price has also moved below all major moving averages, while both the MACD and the Relative Strength Index have plunged. Additionally, HMSTR has formed an inverse cup-and-handle pattern.
Given these signals, the token will likely continue falling as buying interest remains weak. If the decline accelerates, the next level to watch will be $0.00095.