Karrat, a small-cap gaming token, has experienced a notable rise for two consecutive days, reaching its highest point since August 24.

Karrat’s Significant Growth

Karrat (KARRAT) has surged by over 65% from its lowest level this year, bringing its market cap to over $48 million. Despite this recovery, it remains approximately 68% below its all-time high.

Gaming Tokens on the Rise

This rebound in Karrat’s value coincides with a general uptrend in some of the most popular gaming tokens. Immutable X has risen by over 44% in the last seven days, while Beam has soared by 15.7% during the same period. Similarly, Gala Games, The Sandbox, Ronin, and ApeCoin have all jumped by over 15%.

Influence of My Pet Hooligan NFTs

Karrat’s rally was further bolstered by the launch of the Hooligans and Zuckbot NFTs on the My Pet Hooligan platform. According to data, My Pet Hooligan’s NFT sales have totaled $174,393 in the last 30 days, with a significant 88% increase in 24-hour sales, reaching $9,575.

Impact of Market Sentiment

Karrat’s recovery also aligns with a shift in the crypto fear and greed index, which moved from a fear zone of 34 last week to a neutral point of 51. This shift was influenced by the Federal Reserve’s decision to cut interest rates by 0.50%. The rate cut pushed many coins upward, including Bitcoin, which soared to $64,800, its highest point in over a month.

Strategic Partnerships

Karrat, a gaming and NFT-focused blockchain, made headlines in June with its partnership with Palantir, a technology company backed by Peter Thiel. As part of this collaboration, AMGI Studios, a key contributor to Karrat’s network, will utilize Palantir’s architecture in its products. This announcement came on the heels of a partnership with Nvidia in the previous month.

Concentration Among Big Holders

A key concern about Karrat is the concentration of tokens among big holders. Data reveals that the top ten holders account for 92% of all coins. The number of total wallet addresses rose to 5,572 on September 23, marking its highest point since September 12.

Token Dilution Risks

Another risk is the anticipated significant increase in token dilution over the next few years. Karrat has a maximum supply of 1 billion tokens, with 116 million currently in circulation. The next coin unlock is scheduled for October 19, followed by a combined 25 million in the final two months of the year.

The token unlocks will continue until October 2028, meaning holders should prepare for substantial dilutions. A token unlock increases the number of coins in circulation, thereby diluting the value of existing holdings.

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