Because MumtazCEO of Solana’s development platform, Helius Labs, recently shared “big news” that presents an positive outlook for Solana Ecosystem. This situation may also have a positive impact on the price of Solana, which has recently been in a downward trend.

A novel dawn for Solana

Mumtaz mentioned in X’s post (formerly on Twitter) that “ZK compression” is entered directly into the Solana network, without having to Layer 2 networks. He claimed that this changes everything and every impression one has about Solana and Layer 1 network scaling. Mumtaz went on to explain what ZK compression actually involves.

He stated that they managed to compress the state on-chain to achieve “improvements on a scale of 10,000 times”, which he said brings them one step closer to building a financial computer. He added that this means it developers they can now directly build and scale anything they want Solana without having to leave it.”

Mumtaz also gave an example to highlight how significant this development has been in terms of reducing transaction costs. He claimed that a project to drop up to 1 million users typically costs more than $260,000. However, ZK compression makes it much cheaper now, as it only takes $50 to drop these tokens to 1 million users.

Moreover, on the technical side, Mumtaz emphasized that this is a very welcome solution for Solana developers. He noted that allocating accounts, paying rent, and scaling with users was a “huge hurdle” for them, but that has now been fixed with ZK compression.

Mumtaz he also emphasized how it opens doors Solana enjoy significant growth, noting that state growth has been a major concern for blockchain scaling. However, this will now change as ZK compression allows the entire Solana state to be compressed. The Helius CEO added: “This has further implications for hardware requirements and the overall performance of the entire network.”

Mumtaz believes Solana has a “real chance at solving this cryptocurrency problem” when ZK compression is combined with “firedancer, multiple concurrent leaders, asynchronous execution, and an ecosystem of thousands of insanely cracked developers.”

Institutional investors also believe in Solana’s potential

The introduction of ZK compression in Solana occurs after latest forecast made by Panther Capital analysts it Solana will steal a huge share of the cryptocurrency market from Ethereum in terms of blockchain developer activity. These analysts noted Solana’s “monolithic architecture” that enables several employ cases and user experiences.

They added that Solana’s technology enables “fascinating applications” and gave examples of crypto projects that have benefited from Solana’s capabilities, including the non-fungible (NFT) DRiP platform.

Asset manager Franklin Templeton does, too previously predicted that Solana will become the largest crypto token by market capitalization thanks to the network’s “superior technology.” They claimed that Solana will host the sectors that will drive the next wave of cryptocurrency adoption, and also alluded to fireman update this is one of the reasons they are bullish on Solana.

Featured image created with Dall.E, chart from Tradingview.com