In the second week of September, the altcoin season index reached 80 points, officially entering the acceleration phase. This is the stage when capital often flows into low-cap altcoins, even if they lack major news events.
On-chain data shows that some altcoins with a market capitalization below $200 million are experiencing sharp declines in exchange reserves. This typically signals increasing accumulation.
1. Euler (EUL)
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Euler (EUL) is a non-custodial, permissionless lending protocol on Ethereum. The project launched in 2020 and raised $40 million from VCs such as Paradigm and Coinbase Ventures. In 2023, the protocol suffered a hack that caused nearly $200 million in losses.
The token’s current market capitalization stands at $181 million, according to CoinMarketCap. A recent listing on Bithumb drew significant attention from retail investors.
Santiment data shows that the September 5 listing triggered a sharp drop in exchange reserves, which fell to their lowest level in a year. Only 289,000 EUL remain on exchanges, meaning more than 500,000 EUL are left since the August peak.
In addition, the protocol’s total value locked (TVL) reached a new high in September, surpassing $1.5 billion. DefiLlama data shows TVL has increased tenfold since the beginning of the year.
This means the protocol’s TVL is more than seven times its market capitalization. Investors may view this as a bullish indicator contributing to the steep decline in exchange reserves.
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Author: Nhat Hoang
