Karrat, a small-cap gaming cryptocurrency, experienced a notable surge over two consecutive days, reaching its highest level since August 24. The token, known as KARRAT, has climbed more than 65% from its year’s lowest point, elevating its market capitalization to over $48 million, although it remains approximately 68% below its all-time peak.
This upward momentum coincided with significant gains in several popular gaming tokens. Immutable X (IMX) saw an increase of over 44% in the past week, while Beam (BEAM) experienced a 15.7% rise during the same timeframe. Additionally, Gala Games (GALA), The Sandbox, Ronin, and ApeCoin all recorded jumps exceeding 15%.
Karrat’s rally was further fueled by the launch of the Hooligans and Zuckbot NFTs on the My Pet Hooligan platform, a prominent non-fungible token marketplace. According to data from CryptoSlam, NFT sales for My Pet Hooligan reached $174,393 over the last month, with a remarkable 88% spike in 24-hour sales, totaling $9,575.
The recovery of Karrat also coincided with a shift in the crypto fear and greed index, which moved from a fear level of 34 last week to a neutral score of 51. This shift followed a 0.50% interest rate cut by the Federal Reserve, which propelled various cryptocurrencies upward, including Bitcoin, which surged to $64,800—its highest value in over a month.
Karrat, which focuses on gaming and NFTs, made headlines in June with its announcement of a partnership with Palantir, the tech company backed by Peter Thiel. Under this collaboration, AMGI Studios—a significant contributor to Karrat’s ecosystem—will integrate Palantir’s technology into its offerings. This partnership followed a prior agreement with Nvidia in the preceding month.
However, as with Jupiter, there are concerns regarding the concentration of holdings within Karrat. Data from CoinCarp indicates that the top ten holders control 92% of all tokens. The total number of wallet addresses surged to 5,572 as of September 23, marking the highest point since September 12.
Another potential risk lies in the anticipated significant token dilution over the coming years. Karrat has a maximum supply of 1 billion tokens, with 116 million currently in circulation. The next token unlock is scheduled for October 19, with an additional 25 million expected to be unlocked in the last two months of the year.
The final token unlock will occur in October 2028, which means current holders should brace for considerable dilution as the number of coins in circulation increases during these unlocks.