In the second week of September, the altcoin season index climbed to 80 points, marking its entrance into an acceleration phase. This particular phase is characterized by an influx of capital into smaller-cap altcoins, even in the absence of significant news events. On-chain analytics reveal that several altcoins with market capitalizations under $200 million are witnessing a notable decrease in exchange reserves, which often indicates heightened accumulation tendencies.
### Euler (EUL)
Euler (EUL) is a decentralized, non-custodial lending protocol built on the Ethereum blockchain. Established in 2020, the project successfully raised $40 million from venture capital firms, including Paradigm and Coinbase Ventures. However, in 2023, the protocol encountered a significant setback due to a hacking incident that resulted in nearly $200 million in losses. Presently, its market capitalization is approximately $181 million, as reported by CoinMarketCap, with a recent listing on Bithumb attracting considerable interest from retail investors.
Recent data from Santiment indicates that the listing on September 5 led to a sharp reduction in exchange reserves, which have plummeted to their lowest point in a year. Currently, only 289,000 EUL tokens are available on exchanges, a decrease of over 500,000 since their peak in August. Furthermore, the total value locked (TVL) in the protocol reached a new milestone in September, exceeding $1.5 billion, according to DefiLlama. This represents a tenfold increase since the start of the year. The current TVL is more than seven times the market capitalization, which could be viewed as a bullish sign, contributing to the notable drop in exchange reserves. Investor Anze remarked, “Not many protocols can recover after a $200M hack. But you have to commend Euler Finance for its remarkable comeback journey.”
### COTI
COTI is recognized as a swift and lightweight confidentiality layer on Ethereum, offering an advanced solution for data protection on public blockchains. With its market capitalization still below $120 million, COTI’s price performance has been relatively stagnant, hovering around $0.05 for the last three months. Recent observations indicate a significant decline in exchange reserves over the past two days, bringing the total down to 812 million tokens, close to its yearly low.
The charts indicate a prolonged downward trend in exchange reserves, corresponding with the price drop, further suggesting a phase of accumulation during this stagnant period. If the anticipated capital rotation during this altcoin season unfolds as analysts predict, underperforming tokens like COTI may soon capture renewed interest. Notably, COTI’s TVL surged in July, with over 8 million tokens locked, roughly equating to nearly half a billion dollars.
### Robonomics Network (XRT)
Robonomics Network has garnered attention due to its potential in merging robotics with blockchain technology. Experts foresee this sector as a strong contender for the upcoming 2025 altcoin season. Simon Dedic stated, “Crypto x robotics will be retail’s bet on what may be the biggest and most disruptive secular growth trend we’ve ever seen.” Robonomics Network provides a suite of open-source tools for developers in the fields of robotics, smart cities, and Industry 4.0. With a market capitalization of less than $10 million and minimal trading volume, XRT presents a high-risk investment opportunity.
Despite the risks, data from Santiment indicates a promising outlook. The token’s price has remained around $2 since the beginning of the year, even as exchange reserves increased. However, by September, those reserves began to decline from their peak, suggesting renewed accumulation. Some investors speculate that XRT could see a potential increase of 100 times if the robotics sector captures more attention in the near future.
