I don't know why you are seeing such a large difference, but I suspect one of the reported numbers is just wrong, as the space in both versions should be comparable (e.g., maybe you didn't actually have 18 billion events before, or if they were, they were in frozen state and unsearchable. Without knowing your data looks like, I would say that 18 billion events in searchable form into 700GB seems a bit light to me, but 20 billion in 2 TB seems more reasonable).
The data is already about as compressed as it can reasonably be, if it is to be searchable. When rolled to frozen storage (and unsearchable and unviewable from within Splunk without thawing back out) much of the data can be deleted and considerable additional space claimed.
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