Hamster Kombat to launch layer-2 chain as HMSTR nears key price

The Hamster Kombat token remained in a narrow range this week despite developers announcing plans to launch a layer-2 blockchain network.

Hamster Kombat (HMSTR) was trading at $0.0030 on Monday, January 13, and has been stuck at that point for the past few days. The token has fallen nearly 78% from its all-time high, bringing its market cap to $200 million.

In a post published on X, the developers of Hamster Kombat announced their 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 such as Bitcoin (BTC) or Ethereum (ETH) to increase scalability and speed. In Hamster Kombat’s case, the layer-2 network will be built on the TON Blockchain.

“I Should Be More…”

A superman once said: So do we!

Hamster DAO voted in favor of Hamster Kombat & @Tycho_protocol Partnership to build the worst blockchain on the market! Will it happen? 🚀

Tycho is the perfect partner to help us create the most efficient solution… pic.twitter.com/LuNh08jd06

— Hamster Kombat (@hamster_kombat) January 13, 2025

Developers hope that the launch of the new network will attract developers in fields such as gaming and decentralized finance.

They also aim to provide additional benefits to support the challenging price of the HMSTR token. However, historical data shows that the launch of a layer 2 network does not always guarantee success in attracting developers or increasing the token value.

For example, the dYdX token has underperformed compared to other decentralized exchange tokens since the launch of dYdX Chain in 2023. Similarly, the price of Shiba Inu has lagged behind other meme coins such as Pepe and Bonk following the launch of scaling project Shibarium. Uniswap’s token price also struggled before the launch of its own layer-2 network, UniChain, designed to support a multi-chain trading ecosystem.

Hamster Kombat was one of the most popular players in the Telegram win-win industry in 2024, with more than 300 million users. Its popularity decreased after the airdrop as most airdrop recipients sold their tokens. The number of owners has dropped to 3.8 million, according to IntoTheBlock.

Hamster Kombat price may recover HMSTR price chart | Source: crypto.news

Hamster Kombat’s token was trading at $0.0030 on Monday, hovering around the 50- and 25-period moving averages. Daily trading volume and futures open interest continue to decline, indicating low demand.

On a positive note, the token formed a symmetrical triangle pattern. The upper bound of this triangle connects the highest highs since November 10, while the lower bound connects the lowest swings since November 2.

This pattern indicates that the token may experience an uptrend or a downtrend. A bullish breakout could push the price to the next resistance level at $0.003580, the January 6 high. Conversely, a bearish breakout could focus on the psychological support level at $0.0025.