- Bubblegum’s Role: Bubblegum, powered by Merkle Trees, is reducing NFT minting costs on Solana, fostering a surge in weekly minting activity.
- Drip Haus Adoption: Drip Haus, a pioneering project, champions Bubblegum’s compression technology since early 2023.
- Metaplex’s Influence: Developed by Metaplex, Bubblegum complements Solana’s NFT ecosystem, alongside Candy Machine and royalty enforcement.
Every week, the Solana blockchain witnesses the creation of millions of compressed NFTs through the utilization of Bubblegum, a tool that leverages Merkle Trees to significantly reduce the costs associated with minting and interacting with NFTs.
Among the prominent users of Bubblegum is Drip Haus, a project designed to empower creators to mint and distribute NFTs. Since early 2023, Drip Haus has been advocating for the adoption of Bubblegum’s compression technology.
Airdropping 29,000 NFTs on @Solana today cost us ◎347, around $8,500 USD at today’s prices.
After compression ships, this will be around ◎4, or $100.
On Ethereum, this same airdrop today would have cost Ξ127, around $203,000 USD.
— DRiP 💧 (@drip_haus) January 26, 2023
It’s noteworthy that this cost-saving innovation has gained substantial traction on Solana, despite the blockchain already offering low transaction fees compared to Ethereum. Even in scenarios of low demand, executing a basic token transfer on Ethereum incurs a cost of $0.63, while Solana transactions generally cost mere fractions of a cent.
Bubblegum’s methodology relies on Merkle Trees, a widely used data structure in the realm of blockchains, to drive down the expenses associated with minting compressed NFTs. The efficiency stems from the fact that the scanning process of items within a Merkle Tree exhibits logarithmic scalability, resulting in reduced costs per compressed NFT when minting larger quantities.
However, it’s essential to clarify that the increased minting activity doesn’t necessarily translate to a booming NFT market on Solana, as Solscan’s data indicates relatively stable volume in SOL terms for NFTs over the past 90 days.
Bubblegum, the innovative tool behind this cost-saving approach, was developed by Metaplex, an entity that also offers a framework for launching NFTs on Solana known as Candy Machine. In January, Metaplex upgraded its protocol to enable NFT creators to enforce royalty structures, further enhancing the NFT ecosystem on Solana.
Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.