Is COTI's V2 Upgrade for Privacy-Focused Ethereum Layer-2 Solution a Positive Indicator for Price?

COTI Announces V2 Upgrade as a Privacy-Focused Ethereum Layer-2 Solution

COTI has revealed its plans for the V2 upgrade, positioning itself as a privacy-centric Ethereum layer-2 solution. The crypto community has shown great interest in layer-2 solutions for Ethereum, with established options like Polygon, Arbitrum, and Optimism, as well as new entrants like Blast.

Devnet Release of V2 Scheduled for Q2 2024

In Q2 2024, COTI plans to release the devnet version of its V2 upgrade. This will be followed by a testnet launch and eventually the mainnet release. The primary objective of the upgrade is to enhance privacy within the Web3 ecosystem.

COTI recognizes that while transparency is crucial in blockchain, certain sensitive data such as transaction values and votes should be protected. To ensure compliance, COTI will use Garbled Circuits, a cryptographic technology that it claims is more efficient than zero-knowledge technology.

COTI Price Analysis: Breakout From Long-Term Resistance

Since October, the price of COTI has been increasing after hitting a yearly low of $0.036. In November, it broke out from a descending resistance trend line that had been in place for 730 days. This breakout was accompanied by a bullish divergence in the weekly Relative Strength Index (RSI).

If the upward movement continues, COTI could potentially increase by 90% and reach the next resistance at $0.120. However, if there is a weekly close below the $0.055 support level, it could invalidate the breakout and cause a 35% drop to the descending resistance trend line at $0.039.

Hot Take: COTI’s V2 Upgrade Positions It as a Privacy-Focused Layer-2 Solution

COTI’s announcement of its V2 upgrade showcases its commitment to privacy as a key focus. By prioritizing the protection of sensitive data while maintaining compliance, COTI aims to offer businesses a purpose-built environment optimized for speed, scalability, and performance. With the growing interest in layer-2 solutions for Ethereum, COTI’s V2 upgrade could attract attention from users seeking enhanced privacy features.