Solana Eyes $200 Rebound As New Adoption-Driving Technology Debuts

by

As a seasoned crypto investor, I’m always on the lookout for promising projects that can deliver tangible value and real-world use cases. The recent developments from the Solana Foundation, particularly the introduction of “Actions” and “Blockchain Links (Blinks)” tools, have caught my attention.

The Solana Foundation has introduced two new instruments to simplify the addition of Web3 functionalities to popular platforms and promote the use of blockchain technology.

As a researcher studying the latest developments in technology and social media, I’ve come across an exciting announcement from the foundation regarding their new features called “Actions” and “Blockchain Links” (Blinks). These innovations mark a significant stride forward, enabling developers to seamlessly integrate blockchain functionality into websites and social media platforms.

In addition to these progressions, the Solana system is broadening its collection of tools and offerings. Notably, there have been significant strides made in minimizing transaction costs and enhancing network performance within the Solana ecosystem.

Seamless Web3 Transactions? 

As a crypto investor, I can now take advantage of the new feature called “Actions.” This tool empowers me to execute Web3-native transactions directly. I can easily transfer assets, engage with non-fungible tokens (NFTs) by interacting or bidding, participate in voting processes, place bets, and reward content creators with tips – all through this convenient feature.

With Blinks from Complementing Actions, you can reformat any action into a sharable link, making it simple for users to access blockchain functionalities directly through websites and social media platforms.

these tools are said to serve as a significant link between conventional web apps and decentralized finance (DeFi), allowing for the seamless incorporation of blockchain functions into regular online activities.

To further minimize transaction costs, Light Protocol and Helius Labs have introduced a testnet for Zero-Knowledge (ZK) Compression on Solana’s network. By employing zero-knowledge proofs and call data, ZK Compression aims to lessen the expense of transactions within the network.

Through limiting the quantity of on-chain data required for storage, Zero-Knowledge (ZK) Compression allows for significant cost savings in transaction fees by decreasing the computational workload needed for Solana transactions.

According to Mert Mumtaz, the CEO of Helius Labs, ZK Compression has the potential to drastically reduce the expense of distributing tokens to one million users on Solana from an estimated $260,000 to a more affordable $50. This cost-effective approach presents an attractive solution for token airdrops.

As an analyst, I would put it this way: In the past, giving an airdrop to one million users on the Solana network would have cost over a quarter of a million dollars just for the state fees alone. However, today, that same operation only costs around $50. This cost reduction is equivalent to a decrease of approximately 5,200 times. It’s important to note that this cost efficiency isn’t limited to just token accounts on Solana; every transaction or interaction on the platform incurs minimal fees due to its account-based design, which significantly enhances scalability.

ZK Compression On Solana

Critics from the Ethereum community dispute that ZK Compression can be considered a true solution for Solana, given its role as a Layer 2 (L2) technology. However, proponents of Solana emphasize its commitment to avoiding L2 solutions.

Some critics argue that ZK Compression functions similarly to an L2 feature or a validity-rollup. According to Adam Cochran, the VP of Operations at SBT Partners, ZK Compression represents an L2 solution.

Anatoly Yakovenko, Solana’s co-founder, pointed out that ZK Compression effectively tackles several challenges frequently linked to Layer 2 (L2) solutions on Ethereum.

Yakovenko highlighted Solana’s unique feature of operating independently from the security council multisigs, chain ID switches, governance tokens, and external sequencers. At the same time, he ensured that Solana validators would continue to earn transaction fees.

SOL Price Analysis

On Monday, SOL went through a short-term price drop, reaching a minimum of $122. Nevertheless, crypto analyst “Skew A” has observed a recovery in SOL’s 4-hour chart, which has surpassed the rebound of other major tokens.

Based on “Skew A”‘s analysis, several elements are crucial when evaluating SOL‘s prospective upward trend and price rebound. Initially, the crossing of SOL’s price above its 1-day 200-day moving average is a favorable indication.

Based on the data, it appears that the token’s value has been consistently higher than the average price over the previous 200 days, implying a possibly optimistic market outlook. To confirm this upward trend, look for new peaks (higher highs) exceeding $150.

Solana Eyes $200 Rebound As New Adoption-Driving Technology Debuts

Over the past day, SOL has experienced a notable surge, gaining approximately 9% and currently trading at $138. This uptrend bodes well for the token as it seeks to overcome important resistance levels, potentially reaching the significant mark of $200 and solidifying its position above this threshold.

To hit the $200 milestone, SOL needs to get past some substantial obstacles at the price levels of $150, $162, $174, and $186. These points present formidable challenges that must be overcome before potentially shattering the important $200 barrier.

The future is uncertain, but if the Solana ecosystem’s ongoing progress and recent improvements continue, it could potentially help Solana (SOL) regain its past high prices.

Read More

2024-06-26 02:11