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Hamster Kombat token remained in a tight range this week, despite developers announcing plans to launch a layer-2 blockchain network.
Hamster Kombat (HMSTR) was trading at $0.0030 on Monday, Jan. 13, where it has been stuck for the past few days. The token has dropped about 78% from its all-time high, bringing its market value to $200 million.
In a post on X, Hamster Kombat’s developers revealed plans to launch a new layer-2 blockchain in collaboration with Tycho.
A layer-2 network is a secondary framework built on top of an existing blockchain, like Bitcoin (BTC) or Ethereum (ETH), to enhance scalability and speed. In Hamster Kombat’s case, the layer-2 network will be built on the TON Blockchain.
The developers hope that launching the new network will attract developers in areas such as gaming and decentralized finance.
They also aim to provide additional utility to the HMSTR token to bolster its struggling price. However, historical data suggests that launching a layer-2 network does not always guarantee success in attracting developers or boosting token value.
For instance, the dYdX token has underperformed compared to other decentralized exchange tokens since the launch of the dYdX Chain in 2023. Similarly, Shiba Inu’s price has lagged behind other meme coins like Pepe and Bonk following the launch of Shibarium, its scaling project. Uniswap’s token price has also struggled ahead of the launch of UniChain, its own layer-2 network designed to support a multi-chain trading ecosystem.
Hamster Kombat was one of the most popular players in the Telegram tap-to-earn industry in 2024 with over 300 million users. Its popularity waned after its airdrop as most of the airdrop recipients sold their tokens. According to IntoTheBlock, the number of its holders has dropped to 3.8 million.
Hamster Kombat price could rebound
Hamster Kombat’s token was trading at $0.0030 on Monday, hovering around the 50-period and 25-period moving averages. Its daily trading volume and futures open interest have continued to decline, signaling low demand.
On a positive note, the token has formed a symmetrical triangle pattern. The upper boundary of this triangle connects the highest levels since Nov. 10, while the lower boundary links the lowest swings since Nov. 2.
This pattern indicates that the token may experience either a bullish breakout or a bearish breakdown. A bullish breakout could push the price to the next resistance level at $0.003580, its highest swing on Jan. 6. Conversely, a bearish breakdown could bring the psychological support level of $0.0025 into focus.
This article first appeared at crypto.news
