COTI Surges 280% in a Month: What’s Behind the Pump?

COTI, the native currency of the COTI Layer 2, experienced a significant surge in February, gaining more than 280%. Over the past week alone, the value of COTI has more than doubled, jumping by around 130% and sitting at around $0.22 on February 29, 2024.

The rally is largely attributed to a series of technological advancements that have attracted investor interest. In this article, we will explore some of the key factors contributing to COTI’s rise.

Key Takeaways

  • COTI has seen a remarkable increase of over 280% in February, with a notable jump of about 130% in the past week alone.
  • The project’s recent developments have contributed to its growing traction.
  • At its core, COTI is designed as a comprehensive privacy-focused fintech platform aiming to revolutionize digital transactions with its decentralized payment network, stablecoins, and a multi-DAG data structure.
  • Analysts remain bullish on COTI’s future, predicting further price increases based on its technological innovations and market position.

What is COTI?

COTI stands for “Currency of the Internet” and is a pioneering fintech platform that seeks to revolutionize digital transactions by offering a decentralized payment network and stablecoins.

It’s built on a multi-DAG (Directed Acyclic Graph) data structure, which enables it to process over 100,000 transactions per second, offering a scalable, fast, and cost-effective alternative to traditional blockchain systems.

The core of COTI’s innovation is its Trustchain algorithm, which operates on a DAG data structure rather than a conventional blockchain. This approach significantly reduces transaction costs and increases processing speed to up to 100,000 transactions per second.

What is COTI?

The COTI one-month price chart on February 29, 2024. Source: CoinMarketCap

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COTI employs a new consensus mechanism called Proof of Trust (PoT), which combines elements of Proof of Work (PoW) and DAG. This mechanism rates users and nodes within the network based on their historical behavior and payment statistics, assigning a Trust Score that influences transaction processing speed and fees.

Moreover, COTI’s MultiDAG 2.0 layer facilitates the creation of enterprise tokens, merchant tokens, and governance tokens, allowing for the issuance of branded stablecoins like Cardano’s Djed and the payment system ADA Pay.

In essence, COTI is intended not to be just a cryptocurrency but a comprehensive financial ecosystem designed to modernize and simplify digital transactions for businesses and consumers.

COTI’s Latest Developments

COTI has been making significant developments in the cryptocurrency space, which has sparked investor interest in the cryptocurrency. Here are some of the more notable developments:

1. Garbled Circuits on Blockchain

COTI has successfully demonstrated the application of Garbled Circuits on the blockchain, a cryptographic technique that allows two parties to jointly evaluate a function over their inputs without a trusted third party.

In a February 2022 Medium post, the project said it has “achieved a revolutionary breakthrough in garbled circuits” that allows the technology to be used on the blockchain for the very first time. This marks a major step towards enhancing privacy and computational efficiency on the blockchain​​.

2. Multi-Party Computation (MPC) Protocol

Earlier this month, COTI announced that it has integrated the advanced Multi-Party Computation (MPC) protocol into its Ethereum-based L2.

This protocol enables computations that require confidentiality, allowing sensitive data to be computed collectively without being shared, which is crucial for privacy concerns or regulatory requirements​​.

3. COTI’s $100 Million Development Fund

More recently, the COTI Foundation announced the target use cases and focus areas for its $100 million development fund, all of which will be allocated in COTI tokens.

The fund aims to support projects in various sectors, including decentralized finance (DeFi), data management, artificial intelligence (AI), GameFi, and more. Developers are encouraged to apply for funding through a selection process.

COTI Price Prediction: What to Expect Next?

With its innovative technology and growing ecosystem, COTI has gained traction as a promising blockchain project. This has led to a number of bullish forecasts, with predictions indicating a potential for significant growth.

Discussing the token and its future, Anndy Lian, an intergovernmental blockchain expert, told Techopedia: “Their narrative on “increased privacy on the chain,” announced at the end of 2023, got my attention. They want to launch Ethereum Layer 2 – COTI V2 – in 2024.”

“[COTI V2] will lead to potential use cases to keep transaction history private on DEXes or privacy-preserving dApps for RWA that allow businesses to verify the authenticity and traceability of products without revealing sensitive business relationships or information,” Lian explained.

“Considering the timing of Bitcoin’s recent price hike and halving in April, as well as the upcoming Ethereum Dencun upgrade, there is a good chance to see more price action on COTI.”

Tony Severino, a CMT candidate, technical analyst, and the author of the CoinChartist VIP newsletter, told Techopedia: “The COTI Foundation recently revealed a $100m growth fund targeted at expanding development around DeFi, GameFi, AI, and more.”

Severino added that “coupled with surging demand for crypto assets, the positive fundamental roadmap has led to the strongest weekly buying pressure since 2021 per the Relative Strength Index.”

“After some short-term consolidation, COTI appears poised to make new all-time highs in 2024. Exceeding the current price record puts the 1.618 Fibonacci extension in play, with a target of $4.22 per token.”

In the meantime, for the immediate future, CoinCodex suggests a modest increase in the COTI price, with expectations of it reaching $0.224085 by March 7, 2024, marking a 3.67% gain from its current price.

The broader outlook for 2024 suggests a possible range of $0.177128 to $0.641784, highlighting a significant bullish sentiment with a potential increase of up to 204.97%. Looking further ahead, the prediction for 2030 ranges between $0.410150 and $1.305266.

BeInCrypto predicts a high of over $0.65 by July 22, 2024, with a projected return on investment (ROI) from the current level of 170%.

For 2025, the site foresees a new all-time high of $0.8595, indicating a 258% ROI from current levels. Extending predictions to 2030, it suggests that COTI could trade as high as $1.8450, with projected lows around $1.50.

The Bottom Line

COTI’s surge in February can be attributed to its significant technological advancements and strategic initiatives aimed at enhancing privacy and efficiency on the blockchain.

The successful demonstration of Garbled Circuits, the integration of the MPC protocol, and its $100 million development fund are expected to further strengthen COTI’s position and contribute to its positive price trajectory.

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Ruholamin Haqshanas
Cryptocurrency journalist

Ruholamin is a crypto and financial journalist with over three years of experience. Apart from Techopedia, he has been featured in major news outlets, including Cryptonews, Investing.com, 24/7 Wall St, The Tokenist, Business2Community, and has also worked with some prominent crypto and DeFi projects.  He holds a Bachelor's degree in Mechatronics. Ruholamin enjoys reading about tech developments, writing, and nature-watching