Last updated on November 11th, 2024 at 11:06 am
Solana has made a significant stride in blockchain technology with the release of its ZK Compression upgrade, sparking speculation about the potential for $SOL to reach as high as $300. According to Altcoin Buzz, the new upgrade is poised to cut developer costs and enhance network scalability drastically. This development has already had a noticeable effect on $SOL’s price, which surged by 5.73% in the last 24 hours.
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ZK Compression: Cutting Costs and Enhancing Scalability
The latest update on Solana’s mainnet, specifically to the ZK Compression, partially solves some of the problems associated with high costs and scalability of transactions. The update reduces costs for on-chain transactions and data storage by utilizing zero-knowledge (ZK) proofs to minimize data size. With this advancement, the network is more optimized and scalable to a higher demand level, not putting extra pressure on the developers.
The update also creates prerequisites for future ZK compute applications in the Solana ecosystem. These improvements are expected to improve the applications’ effectiveness on Solana, bringing more capital to $SOL. Otherwise, Solana makes a great effort to level up its security by conducting the audits by Neodyme and OtterSec and keeping the bug bounty program with Immunefi permanently to provide the platform’s reliability for developers and investors.
SOL’s Positive Price Trend Amid Market Volatility
The broader crypto market has improved following the FOMC’s reduction of interest rates by 50 basis points. Such a positive market outlook also affected Solana and influenced the rise in $SOL for the past few days. Nevertheless, comments by Federal Reserve Chairman Jerome Powell injected some instability in the market through the downer on future policy.
Despite these oscillations, Solana’s advances, notably the ZK Compression enhancement, have kept $SOL upward. At the time of writing, $SOL’s live price was $138.45, with robust trading activity indicating sustained investor interest.
To summarise, Solana’s ZK Compression improvement marks a significant advancement in blockchain technology, and the rising confidence surrounding $SOL indicates the possibility of more advancements. Despite the hurdles created by market volatility, Solana is establishing itself as a critical player in the cryptocurrency field through increased scalability and lower prices.
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