SOL Price Eyes $300 as Solana Reveals Key Developer Update and Network Enhancements

• Solana has disclosed the official implementation of ZK Compression on the mainnet to reduce costs by 1000 times. 

• This comes after Solana recently unveiled its v1.18.15 update to enhance security measures, introduce a bugfix, and incorporate metrics for threshold failures. 

Solana’s (SOL) journey to $300 is still ongoing as the team announces a significant upgrade for developers to subject costs under a staggering 1000 times reduction with the official implementation of the ZK Compression on the mainnet. According to our research, this technology would compress data by leveraging zero-knowledge proofs to slash on-chain transactions and storage costs. 

ZK compression is live on Solana mainnet
1000x cost savings for Solana developerspic.twitter.com/ryVejjXIhq— Solana (@solana) September 18, 2024

Over the years, security has been Solana’s major priority. For this reason, it has ensured that the technology is comprehensively audited by renowned audit firms—Neodyme and OtterSec. In a post shared on X, Solana explained that the ZK Compression would address major issues related to state growth, enhancement of the network’s efficiency, and scalability. This will prepare the ground for future zero-knowledge computing applications on the network. 

This technology, aside from the cost reduction, encourages Layer 1 (L1) security and performance. On top of that, it ensures that Solana programs can mix and match between compressed and regular on-chain states. On the official ZK Compression platform, the cutting-edge solution is explained as:

Compression: Only the state roots (small fingerprints of all compressed accounts) are stored in on-chain accounts. The underlying data is stored on the cheaper Solana ledger. ZK: The protocol uses small zero-knowledge proofs (validity proofs) to ensure the integrity of the compressed state. This is all done under the hood. You can fetch validity proofs from RPC providers that support ZK Compression.

Earlier Technical Upgrade by Solana

Months ago, Solana renewed its commitment to advancing the ecosystem with the implementation of the v1.18.15 update. According to the earlier reports, this was meant to bolster security measures within the network. 

Another major introduction was a bugfix called “clean_queue.” This feature was meant to enhance the overall transaction processing efficiency by controlling the situation where valid transactions are pushed back into the queue. Most importantly, metrics for threshold failures were incorporated for better monitoring and analysis of network performance.

As stated in the official release, the upgrade further included optimizations to the scheduler, such as “worker precompile verification and shallow threshold checks” in periods of consensus mechanism. 

Solana’s price has, interestingly, reacted strongly to this technical update, with a 5% surge in the last 24 hours to trade at $138. According to our data, SOL’s 24-hour trading volume has also made an incredible upsurge by 64%, with $2.8 billion moving around the market.

According to some analysts, SOL could embark on a bullish extension with its formation of a cup and handle pattern since 2021. 

To take advantage of the asset’s bullish potential, VanEck executive Matthew Sigel has disclosed that the company has made SOL purchases. Speaking in a Bitcoin Macro interview, he disclosed that Solana could occupy “99% of the economic value” of the market share in the future. In our earlier publication, VanEck filed to list the first US spot, Solana Exchange-Traded Fund (ETF), in mid-June. Later, Sigel disclosed that this initiative could be a bet for Donald Trump’s victory in the upcoming US presidential election.