It's not really about having massive supply, it's about having supply rise and fall dynamically with demand, with minimal friction in the price.
It needs to be profitable for someone to bring capital into the system with increased demand by issuing tokens, and similarly profitable to remove tokens from supply, but on small enough margins that it is not disruptive to price and liquidity.
The reason HBD is not yet stable is that the people who are doing the work to make it stable (ie. the HBD stabilizer, large whale accounts like @mika and a larger number of smaller accounts like myself) do not together have the capital to bring in millions when the demand spikes as it has recently. However, in the act of enforcing the peg, eg. using the collateralized convert contract, these accounts are rapidly increasing their capital - as a consequence over time the ecosystem will have more capital available to it to stabilize the token more rapidly.
Edit: With more real commerce, it will also be more profitable to simply act as a market maker, without needing to issue new tokens or to remove tokens from supply as often.
This sums up Hive in many ways. The big money is not here yet. So a lot of the issues we have is because we are still building capital. Unlike Ethereum where billions are rolling in, Hive is stuck dealing in thousands.
It will take some time but more capital is being generated on Hive which will help things in the long run.
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