Altcoin Season: 3 Low-Cap Cryptos Showing Accumulation
Altcoin Season Heats Up: Focus Shifts to Low-Cap Gems
The altcoin season index surged past 80 in the second week of September, signaling an ‘acceleration phase.’ Historically, this period sees capital flowing into smaller market capitalization altcoins, regardless of immediate news catalysts.
On-chain analysis indicates that several altcoins with market caps below $200 million are experiencing significant reductions in exchange reserves, a typical indicator of increased accumulation.
1. Euler (EUL): DeFi Comeback Kid?
Euler (EUL) is a non-custodial lending protocol built on Ethereum. After a tumultuous 2023, which included a major hack, the protocol appears to be gaining traction. Its market capitalization currently sits at $181 million.
A recent listing on the Bithumb exchange sparked retail interest. Data from Santiment shows a sharp decline in exchange reserves following the listing, hitting a one-year low. Currently, only 289,000 EUL remain on exchanges, down over 500,000 EUL from its August peak.
Furthermore, Euler's total value locked (TVL) has reached new highs in September, exceeding $1.5 billion, a tenfold increase since the start of the year. This translates to a TVL more than seven times its market cap, which could be viewed as a bullish signal.
Key Takeaways:
- Significant reduction in EUL held on exchanges.
- TVL vastly exceeds market capitalization.
- Strong recovery post-hack.
2. COTI: Privacy Layer Seeing Accumulation
COTI provides a privacy layer on Ethereum, focusing on compliant data protection. While its market capitalization remains under $120 million and price action has been stagnant around $0.05 for months, recent on-chain data suggests accumulation.
Exchange reserves have dropped sharply in the last few days to 812 million tokens, nearing yearly lows. This decline aligns with a prolonged downtrend in exchange reserves, potentially indicating ongoing accumulation even amidst sideways price movement.
COTI's TVL saw a substantial spike in July, with over 8 million tokens locked, equivalent to almost half a billion dollars.
Key Takeaways:
- Sharp decrease in COTI on exchanges.
- TVL spike in July.
- Potential for renewed interest if altcoin season continues.
3. Robonomics Network (XRT): Robotics Narrative Gaining Steam
Robonomics Network (XRT) combines robotics with blockchain technology. With a market cap under $10 million and low trading volume, XRT is a high-risk investment. However, some analysts believe the crypto x robotics sector is poised for growth.
Santiment data reveals that while XRT's price has remained relatively stable around $2 since the beginning of the year, exchange reserves are declining from their peak, indicating possible accumulation.
The Robonomics Network provides a suite of open-source tools for Robotics, Smart Cities, and Industry 4.0. The project may appeal to investors looking for innovative blockchain applications.
Key Takeaways:
- Small market cap, high-risk investment.
- Exposure to the emerging crypto x robotics narrative.
- Declining exchange reserves suggesting renewed accumulation.