Solana Eyes $200 Rebound As New Adoption-Driving Technology Debuts
June 25 2024 - 7:00PM
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The Solana Foundation recently launched two new tools to facilitate
the integration of Web3 capabilities into mainstream platforms and
the adoption of blockchain. In a series of social media
posts, the foundation launched “Actions” and “Blockchain Links”
(Blinks), which, according to the announcement, is a step forward
in allowing developers to build blockchain functionality into
websites 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 of the
newly introduced tools, allows users to engage 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
Action into a shareable link, transforming websites and social
media platforms into practical entry points for blockchain
interactions. These tools reportedly provide an important
bridge between traditional web applications and decentralized
finance (DeFi), facilitating the integration of blockchain
capabilities into everyday digital experiences. Related Reading:
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The End, Here’s Why In addition, 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 reduce the cost of
transactions on the network. By minimizing the amount 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 cost of airdropping tokens to one
million users on Solana from $260,000 to just $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 just one example of this —
*everything* on Solana is an account, meaning everything can 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 associated with
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 Analysis SOL
experienced a temporary dip on Monday, with its price reaching a
low of $122. However, crypto analyst “Skew A” has examined SOL’s
4-hour chart and pointed out its rebound, surpassing the recovery
of other large tokens. According to “Skew A,” specific
factors need to 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
suggests the token’s value is trending above the average price over
the past 200 days, indicating a potentially bullish sentiment.
Furthermore, confirmation of SOL’s upward trend would involve
observing higher highs (HH) above $150. Related Reading: 10x Your
Crypto Portfolio: Top Analyst Highlights 4 Altcoins To Buy In the
past 24 hours, SOL has notably recovered with a 9% increase,
bringing its current trading price to $138. This upward movement
positions the token favorably as it aims to surpass key resistance
levels on its path toward consolidating above the significant
milestone of $200. To reach the $200 mark, SOL must overcome and
successfully breach major resistance walls at $150, $162, $174, and
$186. These levels represent significant hurdles that must be
surpassed before potentially breaking through the crucial $200
threshold. It remains to be seen whether the ongoing momentum and
positive developments within the Solana ecosystem will sustain
SOL’s current recovery and enable it to retest the higher price
levels achieved in recent months. Featured image from DALL-E, chart
from TradingView.com
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