Altcoin Season Index Signals Acceleration
In the second week of September, the altcoin season index registered a significant rise to 80 points, marking its entry into an acceleration phase. This phase is characterized by a surge in investments toward lower-cap altcoins, even in the absence of major news. On-chain analytics indicate that certain altcoins with market capitalizations under $200 million are witnessing notable decreases in their exchange reserves, a trend typically indicative of growing accumulation.
Euler (EUL)
Euler (EUL) operates as a non-custodial, permissionless lending protocol on the Ethereum blockchain. Established in 2020, it successfully secured $40 million in funding from venture capital firms like Paradigm and Coinbase Ventures. However, in 2023, the protocol faced a significant setback due to a hack that resulted in losses approaching $200 million. Currently, EUL’s market capitalization is reported at $181 million by CoinMarketCap. A recent listing on Bithumb has garnered considerable interest from retail investors.
Data from Santiment reveals that the September 5 listing catalyzed a substantial reduction in exchange reserves, which have now dropped to their lowest in a year. Only 289,000 EUL tokens remain available on exchanges, a stark decrease from over 500,000 tokens since August. Additionally, the protocol’s total value locked (TVL) achieved a new milestone in September, exceeding $1.5 billion. According to DefiLlama, this figure has surged tenfold since the year’s beginning, illustrating that the protocol’s TVL significantly surpasses its market cap. This bullish signal may be contributing to the notable decline in exchange reserves. An investor, Anze, remarked, “Not many protocols can rebound after a $200M hack, but Euler Finance has demonstrated an impressive recovery.”
COTI
COTI serves as an efficient and lightweight confidentiality layer on the Ethereum blockchain, offering an advanced and compliant solution for data protection in public blockchain environments. With a market capitalization of less than $120 million, the token has experienced lackluster price performance, hovering around $0.05 for the last three months. Recent observations indicate that exchange reserves have plummeted significantly in the past couple of days, now standing at 812 million tokens—approaching a yearly low.
Charts indicate a persistent downtrend in exchange reserves that aligns with the declining price trend. The stagnant price movement in recent months further supports the notion of ongoing accumulation. Should the expected capital rotation in this altcoin season unfold as analysts anticipate, underperforming tokens like COTI may garner renewed interest. Notably, COTI’s TVL surged in July, with over 8 million tokens locked—approximately equivalent to half a billion dollars.
Robonomics Network (XRT)
Robonomics Network is included in this discussion due to the increasing interest in the integration of robotics and cryptocurrencies. Analysts predict that this sector could emerge as a significant player in the upcoming altcoin season of 2025. Simon Dedic remarked, “The intersection of crypto and robotics may represent one of the most transformative growth trends we’ve ever encountered,” suggesting the potential for substantial retail investment.
Robonomics Network provides a collection of open-source packages tailored for developers in robotics, smart cities, and Industry 4.0. The XRT token currently holds a market capitalization under $10 million and exhibits low trading volumes, which renders it a high-risk investment. However, data from Santiment paints an optimistic picture; the token’s price has remained stable around $2 since the start of the year, even as exchange reserves were on the rise. As of September, these reserves began to decrease from their peak, indicating renewed accumulation. Some investors speculate that XRT could potentially surge by 100 times if the robotics sector receives increased attention in the near future.
