Karrat, a small-cap gaming token, rose for two consecutive days, reaching its highest point since Aug. 24.
Karrat (KARRAT) has risen by over 65% from its lowest level this year, bringing its market cap to over $48 million. However, it remains about 68% below its all-time high.
This rebound occurred as some of the most popular gaming tokens jumped. Immutable X (IMX) has risen by over 44% in the last seven days while Beam (BEAM) soared by 15.7% in the same period. Similarly, Gala Games (GALA), The Sandbox, Ronin, and ApeCoin have all jumped by over 15%.
Karrat also rallied after My Pet Hooligan, a popular non-fungible token platform, launched the Hooligans and Zuckbot NFTs on its platform. Data from CryptoSlam shows that My Pet Hooligan’s NFT sales totaled $174,393 in the last 30 days. Their 24-hour sales increased by 88% to $9,575.
Karrat’s recovery also happened as the crypto fear and greed index moved from the fear zone of 34 last week to a neutral point of 51 after the Federal Reserve cut interest rates by 0.50%. That rate cut pushed more coins upward, with Bitcoin soaring to $64,800, its highest point in over a month.
Karrat, a gaming and NFT-focused blockchain, made headlines in June when it announced a partnership with Palantir, the Peter Thiel-backed technology company. As part of this partnership, AMGI Studios, a key contributor to Karrat’s network, will use Palantir’s architecture in its products. This announcement followed a partnership with Nvidia in the previous month.
As with Jupiter, a key concern about Karrat is the concentration among big holders. Data from CoinCarp shows that the top ten holders account for 92% of all coins. The number of total wallet addresses rose to 5,572 on Sept. 23, its highest point since Sept. 12.
Another risk is the significant increase in token dilution expected in the next few years. Karrat has a maximum supply of 1 billion tokens, with 116 million currently in circulation. The next coin unlock will occur on Oct. 19, followed by a combined 25 million in the final two months of the year.
Karrat’s token unlocks will end in October 2028, meaning holders should prepare for substantial dilutions. A token unlock dilutes existing holders by increasing the number of coins in circulation.
