The Solana Foundation recently launched two recent tools to facilitate the mixing of Web3 capabilities into mainstream platforms and the adoption of blockchain.
In a series of social media posts, the muse launched “Actions” and “Blockchain Links” (Blinks), which, in accordance with the announcement, is a step forward in allowing developers to construct blockchain functionality into web sites and social media platforms.
Alongside these developments, the Solana ecosystem continues to expand its tooling and services, with notable advancements in transaction cost reduction and network efficiency.
Seamless Web3 Transactions?
Actions, one among the newly introduced tools, allows users to have interaction in Web3-native transactions, including asset transfers, non-fungible token (NFT) interactions, voting, betting, and tipping content creators.
Complementing Actions, Blinks allows developers to format any Motion right into a shareable link, transforming web sites and social media platforms into practical entry points for blockchain interactions.
These tools reportedly provide a crucial bridge between traditional web applications and decentralized finance (DeFi), facilitating the mixing of blockchain capabilities into on a regular basis digital experiences.
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As well as, to optimize transaction costs, Light Protocol and Helius Labs recently launched a testnet for ZK Compression on the Solana network. ZK Compression uses zero-knowledge proofs and call data to scale back the fee of transactions on the network.
By minimizing the quantity of on-chain data stored, ZK Compression enables considerable fee savings by reducing the computational demand of Solana transactions.
Mert Mumtaz, CEO of Helius Labs, estimates that ZK Compression can cut the fee of airdropping tokens to 1 million users on Solana from $260,000 to simply $50, providing a compelling, cost-efficient solution. Mumtaz further stated:
example cost difference: take an airdrop to 1,000,000 users. This today would cost over $260,000 for state alone. Now, it’s $50 — 5,200x cheaper. But a token account is only one example of this — *every thing* on Solana is an account, meaning every thing will be scaled.
ZK Compression On Solana
While ZK Compression has garnered praise for its cost-saving potential, critics from the Ethereum community argue that it functions as a Layer 2 (L2) solution, contrary to Solana’s anti-Layer 2 ethos.
Some skeptics contend that ZK Compression essentially operates as an L2 feature or a validity-based rollup. Adam Cochran, VP of Operations at SBT Partners, stated that ZK Compression is an L2 solution.
In response, Anatoly Yakovenko, Solana’s co-founder, highlighted that ZK Compression addresses many issues commonly related to Ethereum-based L2 solutions.
Yakovenko emphasized its independence from security council multisigs, chain ID switches, governance tokens, and external sequencers while ensuring Solana validators receive transaction fees.
SOL Price Evaluation
SOL experienced a brief dip on Monday, with its price reaching a low of $122. Nonetheless, crypto analyst “Skew A” has examined SOL’s 4-hour chart and identified its rebound, surpassing the recovery of other large tokens.
According to “Skew A,” specific aspects should be considered when assessing SOL’s potential uptrend and price recovery. Firstly, SOL’s price movement above the 1-day 200MA (Moving Average) is a positive signal.
This means the token’s value is trending above the common price over the past 200 days, indicating a potentially bullish sentiment. Moreover, confirmation of SOL’s upward trend would involve observing higher highs (HH) above $150.
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The 1-D chart shows SOL’s price recovery. Source: SOLUSD on TradingView.com
Up to now 24 hours, SOL has notably recovered with a 9% increase, bringing its current trading price to $138. This upward movement positions the token favorably because it goals to surpass key resistance levels on its path toward consolidating above the numerous milestone of $200.
To succeed in the $200 mark, SOL must overcome and successfully breach major resistance partitions at $150, $162, $174, and $186. These levels represent significant hurdles that should be surpassed before potentially breaking through the crucial $200 threshold.
It stays to be seen whether the continued momentum and positive developments throughout the Solana ecosystem will sustain SOL’s current recovery and enable it to retest the upper price levels achieved in recent months.
Featured image from DALL-E, chart from TradingView.com