The small-cap altcoin market is attracting investor attention. Despite the high risks, such projects often experience short-term surges and become magnets for smart money.
Last week, three tokens—Euler (EUL), COTI (COTI), and Robonomics Network (XRT)—were in the spotlight. We looked at what’s behind their growth and why they might be of interest to investors.
Euler (EUL) is a non-costodial lending protocol on Ethereum launched in 2020. The project raised $40 million from venture capital firms, including Paradigm and Coinbase Ventures. In 2023, Euler suffered a major hack costing nearly $200 million, but managed to recover and continue developing. According to CoinMarketCap, the token’s market capitalization is $181 million.
The token’s listing on Bithumb sparked further interest from retail investors. According to Santiment, the September 5 listing triggered a sharp decline in token reserves on centralized exchanges. Currently, only 289,000 EUL are held there—the lowest level in over a year. Since August, over 500,000 EUL have been withdrawn from exchanges, indicating investor accumulation.
In September, the total value locked in the protocol exceeded $1.5 billion, a tenfold increase since the beginning of the year, according to DefiLlama. This means the TVL is more than seven times the token’s market capitalization, which could be seen as a positive sign for investors.
“Few protocols can recover from a $200 million hack. But Euler Finance has made an incredible comeback,” noted investor Anze.
COTI is a lightweight and fast privacy overlay on Ethereum designed to secure data on a public blockchain. The project’s market capitalization is under $120 million, and the token price has hovered around $0.05 for the past three months. Despite the weak momentum, on-chain data indicates signs of accumulation.
According to Santiment, COTI reserves on centralized exchanges have fallen to 812 million tokens over the past two days, nearing a year-low. The decline in exchange reserves is generally interpreted as a reduction in selling pressure.
The price is still moving sideways, but investors are gradually accumulating the token in anticipation of the next growth phase. If capital rotation does indeed begin during the current altcoin season, analysts believe that undervalued projects like COTI could once again come into the spotlight.
The total value locked (TVL) in the COTI ecosystem exceeded 8 million tokens in July, equivalent to nearly $500 million, highlighting the project’s resilience.
Robonomics Network is a set of open-source tools for developers in the fields of robotics, smart cities, and Industry 4.0. XRT’s market capitalization remains extremely modest—less than $10 million—and trading volume remains low, making it a high-risk asset.
Nevertheless, the project deserves attention due to the growing interest in robotics and cryptocurrencies. Experts expect this sector to become one of the drivers of the altcoin season in 2025.
“Cryptocurrency and robotics will be retail investors’ bet on what may be the biggest and most disruptive growth trend we’ve ever seen,” says Simon Dedic, founder of Moonrock Capital.
According to Santiment, the XRT price has remained around $2 since the beginning of the year, despite fluctuations in exchange reserves. By September, volumes on centralized platforms began to decline from their peaks, which may indicate a resumption of token accumulation. Some investors believe XRT could grow 100-fold if interest in robotics in the cryptocurrency industry significantly increases.
Small-cap altcoins like EUL, COTI, and XRT remain highly risky assets. However, declining exchange reserves and rising TVL indicate that investors continue to seek opportunities in these projects. If the altcoin season truly gains momentum, demand for such tokens could surge. This offers traders a chance to catch a new wave of growth, but they should be mindful of high volatility and the need for careful risk management.
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