On second thought. Botnet operators may not neccisarily dump this coin. It's the PERFECT medium of exchange for that sort of person. This will be the hacker coin. Maybe by making such a memory hard hashing function, we have inadvertently put it into the hands of exactly the people to whom it is most useful.
Monero mining might have been more suited to botnet operators than other crypto coins initially, but from now on I suspect the proportion of "investment miners" is never going to be high. It appears that the XMR mining apps have got to the stage where there is roughly parity with Scrypt mining, i.e. a good GPU can hash 10-15x faster than a good CPU, so the botnet operator has no more advantage than the GPU farmer, they just all look for the highest returning coin. Currently its attractive for semi-pro gpu farmers who have been pushed out of Scrypt by ASICs and find other altcoin returns plummeting, and they can have a lot of hashpower -as long as it is earning slightly more than their power costs they will run it. I don't know the costs of running a botnet but I doubt its massively cheaper than gpu mining, and probably not as scalable either.
I think you have to assume that 90%+ of the coins mined each day go straight to the exchanges for sale, so the daily supply from mining is pretty constant (much like Bitcoin), the demand factors on the other side are more complex. Once you get longterm holders deciding to offload coins then you potentially have problems, but at least monero doesn't have the usual premine/IPO dumps to deal with.