As Solana NFTs see high-profile exits, this offering will be a game changer

by James · April 7, 2023

Solana’s new state compression technology could reduce the cost of minting NFTs.
The total NFT sales volume for Solana grew by 31% in the last 30 days.

Solana’s [SOL] The NFT ecosystem has been hit hard by the exits of two of its most popular and valuable NFT pools, y00ts and DeGods, in 2023. While y00ts has almost completed its migration to the polygon [MATIC] chain, its sister project, DeGods, is moving to Ethereum [ETH] was also underway at press time.

Realistic or not, here is SOL’s market cap in BTC terms

According to CryptoSlam, the total NFT sales volume on Solana grew by 31% in the last 30 days. However, NFT trading volume fell by over 8%. It remains to be seen how much of an impact the absence of said gatherings will have on the second largest NFT market in the crypto space.

Source: CryptoSlam

However, in the midst of this negativity, the Solana network introduced a game-changing technology that could entice the NFT community in the days to come.

Solana NFT embossing will be affordable

The Solana Foundation planned to make it cheaper to store NFTs on the blockchain using its “state compression technology”. According to the blog post, compressed NFTs are just like traditional NFTs, except for the fact that the cost of minting is drastically reduced.

In the example given by Solana, minting a million uncompressed NFTs currently costs more than $250,000 on-chain. The same would cost $113 using compressed NFTs, almost a fraction of the original.

Solana highlighted that NFT compressions were the first time state compression technology was used. The technology was already used by applications in the Solana ecosystem, such as Dialect and Crossmint.

1/ Solana’s low fees have made it an industry leader. But thanks to a recent innovation from teams across the ecosystem, it’s about to cost even less.

Introducing state compression, a new way of storing data on Solana that significantly reduces costs.

— Solana (@solana) 6 April 2023

Network activity is reduced

In terms of network activity, the number of daily active users on the chain increased by 14% in the last 10 days, according to Token Terminal.

However, despite the growing number of users, trading activity failed to show a noticeable jump as transaction fees remained subdued.

Source: Token Terminal

Read Solanas [SOL] Price prediction 2023-24

SOL’s price was up slightly from last week, standing at $20.45 at press time. It may be due to the significant decrease in trading volume, as shown in the following graph by Santiment.

A positive takeaway, however, was the increase in development activity, which may create confidence among SOL investors.