Solana has outperformed other major tokens this week. According to Coinbase analysts David Duong and David Han, this increase in performance is attributed to several internal catalysts specific to the Solana ecosystem.
Analysts highlighted that the performance increase was due to significant technological advances and the filing of the first spot Solana ETF in the US by VanEck. These developments have significantly increased the value proposition of the Solana blockchain.
One of these developments is the introduction of ZK Compression technology. According to analysts, this technology could potentially reduce costs on Solana, especially for large-scale token distributions.
Another notable development, according to analysts, is the launch of Solana's Blockchain Links, also known as 'blinks'. Blinks enable Solana-specific actions to be embedded into any website UI. With proper setup, blinks allow users to engage in a variety of on-chain actions, including NFT mints, USDC transfers, DEX swaps, management bids, and more.
According to analysts, this development could provide an improved and more universal user experience for Solana applications.
The report also shed light on fund manager VanEck's application for an exchange-traded fund that would track Solana's price. Analysts described this development as promising, regardless of its outcome. As a latest development, 21Shares has also applied for Solana ETF.
*This is not investment advice.