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Karrat, a small-cap gaming token, rose for two consecutive days and hit its highest point since August 24.
Karrat (KARRAT) has surged over 65% from its lowest level this year, bringing its market cap to over $48 million. However, it is still 68% below its all-time high.
This rally came as some of the most popular gaming tokens surged. Immutable x (IMX) is up over 44% in the past seven days, while Beam (BEAM) soared 15.7% in the same period. Similarly, Gala Games (GALA), The Sandbox, Ronin, and ApeCoin are all up over 15%.
Karrat also rallied after My Pet Hooligan, a popular non-fungible token platform, launched the Hooligans and Zuckbot nfts on its platform. CryptoSlam shows that My Pet Hooligan’s nft sales totaled $174,393 over the past 30 days. Its 24-hour sales increased by 88% to $9,575.
Karrat’s rally also came as the cryptocurrency fear and greed index moved from the fear zone of 34 last week to a neutral 51 after the Federal Reserve cut interest rates by 0.50%. That rate cut pushed more coins higher, with bitcoin soaring to $64,800, its highest point in over a month.
Karrat, a blockchain focused on gaming and nfts, made headlines in June when it announced a partnership with Palantir, the Peter Thiel-backed tech firm. 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 the previous month.
As with Jupiter, a key concern regarding Karrat is concentration among large shareholders. CoinCarp shows that the top ten holders account for 92% of all coins. The total number of wallet addresses increased to 5,572 on September 23, its highest point since September 12.
Another risk is the significant increase in token dilution expected in the coming years. Karrat has a maximum supply of 1 billion tokens, with 116 million currently in circulation. The next coin unlock will occur on October 19, followed by a combined total of 25 million in the last two months of the year.
Karrat 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.
