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Solana, a highly scalable blockchain network, has been making waves in the crypto world as an “Ethereum-killer.” However, recent failures have put a dent in its reputation. Despite these setbacks, Solana has announced a major innovation with a new feature called “State Compression.”
This new solution aims to lower the minting costs for NFTs, which have been a major barrier to entry for many creators and users. By reducing the costs of creating and trading NFTs, Solana’s state compression technology now has the potential to unlock new opportunities in the NFT market and make it more accessible to a wider audience.
NFT Market Set To Grow With Solana’s State Compression
Traditionally, data on the blockchain is stored in an uncompressed format, which can be space-consuming and costly. Solana’s state compression technology is a solution that reduces the amount of storage required for storing data on the blockchain. This is achieved by compressing the data before it is stored on-chain, making it more efficient and cost-effective.
In addition to reducing storage costs, Solana’s state compression technology can also improve the overall efficiency of the blockchain. By compressing data, it becomes easier and faster to process, reducing the time and resources that are required to execute transactions. This can improve the overall speed and scalability of the blockchain, making it a more attractive platform for building decentralized applications (DeFi).
Solana’s state compression technology has significant implications for the NFT market, particularly in reducing the cost and complexity of creating NFTs. According to Solana’s announcement, the most important implication of this technology is “compressed” NFTs, which are similar to regular NFTs but much cheaper to mint and store on-chain.
Per the announcement, compressed NFTs are created by compressing the data stored on the blockchain, drastically reducing the amount of storage required; the feature makes it much more affordable for creators and users to participate in the NFT market.
Compressed NFTs may be a game-changer for the NFT market, making it much more affordable for creators and users to participate. Using Solana’s state compression technology, developers can create and trade NFTs at a fraction of the cost of traditional NFTs, opening up new opportunities for innovation and growth in the NFT market.
Solana’s native token SOL has breached the $21 level, but it is currently trading at $20.60, representing a 1.2% decline from the previous 24 hours. The current resistance for SOL is located at the $21.32 mark. If the price surpasses this level, it could regain its bullish momentum and aim for its yearly high of $27, achieved in January.
On the other hand, the current support level for SOL is $20.69, which has remained firm since its decline in the last 24 hours. If this support level persists, SOL could maintain its bullish trend and potentially surge to higher levels in the upcoming days.
Featured image from Unsplash, chart from TradingView.com