Hamster Kombat L2 Announcement: What Does It Mean for the Cryptocurrency Market?

Popular Telegram tap-to-earn game Hamster Kombat has announced plans to launch its own Layer-2 (L2) solution on The Open Network (TON) blockchain.

The strategic decision was made following the recent formation of Hamster Kombat’s decentralized autonomous organization (DAO).

"The vote on the second proposal has ended! The DAO community has spoken: there WILL BE Hamster L2 blockchain built on TON!"

The development marks a pivotal moment for both Hamster Kombat and the broader TON ecosystem.

After rising to prominence in 2024 thanks to the growth of Telegram's mini-app system, which saw Ton Network's total value locked (TVL) surge from around $25 million to nearly $600 million in early 2024, Hamster Kombat faced a setback following its controversial Season 1 airdrop.

The incident led to a sharp drop in both user numbers and token value.

However, the decision by its DAO to launch its L2 solution appears to be a response to these challenges and aims to revitalize the platform.

The move is also expected to benefit Toncoin (TON), the native token of The Open Network.

"We will be serving our community, the biggest web3 community in the world, with the technological foundation it asked for!" the team announced on its Telegram channel.

The launch of the L2 solution is poised to significantly enhance the scalability and performance of the Hamster Kombat platform, which could pave the way for wider L2 adoption and further strengthen the network's capabilities.

What does this mean for the cryptocurrency market?

The development is likely to drive Toncoin's price upwards in the coming months as increased activity and integration within the TON ecosystem will boost demand for both HMSTR and Toncoin.

Other tokens in the ecosystem are also likely to respond positively to the announcement, with Catizen (CATI) and Notcoin (NOT) among those that could experience price increases.

The L2 solution has the potential to dramatically enhance the scalability and performance of the Hamster Kombat platform, setting a precedent for other TON projects.

This could lead to a wave of L2 adoptions, further strengthening the network's capabilities.

At the time of writing, the TON price is trading at $5.5489 with a market capitalization of $4.21 billion.

The RSI of 35.89 indicates that the token is almost oversold but not quite there yet.

While it suggests some selling pressure, it is not at extreme levels. The RSI is also in line with the overall recent bearish trend of the cryptocurrency.

Traders should watch for potential bullish crossovers or convergence in the MACD, which could signal a trend reversal, especially when combined with the near-oversold RSI.

Current indicators suggest Ton (TON) may be undervalued, presenting a potential buying opportunity. However, traders should exercise caution as the downtrend may continue.

Traders could consider waiting for signals of a stronger reversal opportunity, like a bullish divergence between the price and RSI/MACD.