[....] Can someone explain this as I am fairly new to understanding tokenomics and how it affects potential price.
It all boils down to the law of supply of demand. Demand for altcoins in general seems to have decreased so Gala increasing the supply circulating in the open market is going to be perceived as bad. Perception is enough for a lot of investors to dump their bags.
I initially started to invest in Gala in the hope it would reach at least $1 next bull run but many are saying now it will struggle to even reach 50 cents.
People's price speculation are often wrong during bullrun. You have ETH that has an unlimited supply with POW algo but ATH keeps breaking. If there is enough anticipation for Gala that people would FOMO then who knows what's gonna happen to the price?