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This paper describes an area and power-efficient VLSI approach for implementing the discrete wavelet transform on streaming multielectrode neurophysiological data in real time. The VLSI implementation is based on the lifting scheme for wavelet computation using the symmlet4 basis with quantized coefficients and integer fixed-point data precision to minimize hardware demands. The proposed design is driven by the need to compress neural signals recorded with high-density microelectrode arrays implanted in the cortex prior to data telemetry. Our results indicate that signal integrity is not compromised by quantization down to 5-bit filter coefficient and 10-bit data precision at intermediate stages. Furthermore, results from analog simulation and modeling show that a hardware-minimized computational core executing filter steps sequentially is advantageous over the pipeline approach commonly used in DWT …