diff --git a/scripts/export-testnet-state.sh b/scripts/export-testnet-state.sh
index a6b21d4..8a2a74e 100755
--- a/scripts/export-testnet-state.sh
+++ b/scripts/export-testnet-state.sh
@@ -19,10 +19,10 @@ OUTPUT_DIR=${TESTNET_DEPLOYMENT_DIR}/export
 mkdir -p $OUTPUT_DIR
 
 # Export state from testnet chain
-testnet_state_file="$OUTPUT_DIR/testnet-state.json"
+testnet_state_file="$OUTPUT_DIR/testnet-state.json.gz"
 docker run -it \
   -v ${TESTNET_DEPLOYMENT_DIR}/data/laconicd-data:/root/testnet-deployment/.laconicd \
   cerc/laconicd:local bash -c "laconicd export --home /root/testnet-deployment/.laconicd" \
-  | jq > "$testnet_state_file"
+  | jq | gzip > "$testnet_state_file"
 
 echo "Exported state from testnet to $testnet_state_file"