Solana Developer Shares “Big News” That Could Send The SOL Price Flying
June 24 2024 - 1:30PM
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Mert Mumtaz, CEO of Solana’s development platform Helius Labs,
recently shared “big news” that presents a bullish outlook for the
Solana ecosystem. This development could also positively impact
Solana’s price, which has recently been on a downtrend. A New
Dawn For Solana Mumtaz mentioned in an X (formerly Twitter) post
that “ZK compression” is being introduced directly on the Solana
network without requiring layer-2 networks. He claimed that this
changes everything and every impression one has about Solana and
scaling layer-1 networks. Mumtaz further explained what the ZK
compression is really about. Related Reading: Shiba Inu Whale
Withdraws 2.2 Billion SHIB From Robinhood, Should You Follow The
Whales? He stated that they have managed to compress the on-chain
state to get “10,000x scale improvements,” which he claimed brings
them one step closer to building the financial computer. He added
that this means that developers can “now build and scale anything
they want directly on Solana without needing to leave it.” Mumtaz
also gave an example to highlight how significant this development
was in terms of a reduction in transaction costs. He claimed that
it would usually cost over $260,000 for a project to carry out an
airdrop to 1 million users. However, ZK compression makes it way
cheaper now as only $50 will be needed now to airdrop these tokens
to those 1 million users. Furthermore, on the technical side,
Mumtaz highlighted how this is a much-welcome development for
Solana developers. He noted that allocating accounts, paying rent,
and scaling with users has been a “massive roadblock” for them, but
that has now been fixed with this ZK compression. Mumtaz also
highlighted how this opens the door for Solana to enjoy significant
growth, noting that state growth has been a major issue for scaling
blockchains. However, that is set to change now as ZK compression
makes it possible to compress all Solana state. The Helius CEO
added, “This has further implications for hardware requirements and
the overall performance of the entire network.” Mumtaz believes
Solana has a “real shot at this crypto thing” when this ZK
compression is combined with “firedancer, multiple concurrent
leaders, async execution, and ecosystem of thousands of insanely
cracked devs.” Institutional Investors Also Believe In Solana’s
Potential The introduction of ZK compression on Solana follows the
recent prediction made by Pantera Capital’s analysts that Solana
will steal a massive chunk of the crypto market from Ethereum in
terms of blockchain developer activity. These analysts highlighted
Solana’s “monolithic architecture,” which enables several use cases
and user experiences. Related Reading: Bitcoin Crash: Crypto
Analyst Reveals Why Price Could Drop To $52,000 They added that
Solana’s technology enables “compelling applications” and gave
examples of crypto projects that have benefitted from Solana’s
capabilities, including the non-fungible (NFT) platform DRiP. Asset
manager Franklin Templeton also previously predicted that Solana
would become the largest crypto token by market cap thanks to the
network’s “superior tech.” They claimed that Solana would host the
sectors that will drive the next wave of crypto adoption and also
alluded to the firedancer update as one of the reasons they are
bullish on Solana. Featured image created with Dall.E, chart
from Tradingview.com
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