3D Gaussian Splatting (3DGS) has demonstrated breakthrough performance in novel view synthesis and real-time rendering. Nevertheless, its practicality is constrained by the high memory cost due to a huge number of Gaussian points. Many pruning-based 3DGS variants have been proposed for memory saving, but often compromise spatial consistency and may lead to rendering artifacts. To address this issue, we propose graph-based spatial distribution optimization for compact 3D Gaussian Splatting (GS\textasciicircum2), which enhances reconstruction quality by optimizing the spatial distribution of Gaussian points. Specifically, we introduce an evidence lower bound (ELBO)-based adaptive densification strategy that automatically controls the densification process. In addition, an opacity-aware progressive pruning strategy is proposed to further reduce memory consumption by dynamically removing low-opacity Gaussian points. Furthermore, we propose a graph-based feature encoding module to adjust the spatial distribution via feature-guided point shifting. Extensive experiments validate that GS\textasciicircum2 achieves a compact Gaussian representation while delivering superior rendering quality. Compared with 3DGS, it achieves higher PSNR with only about 12.5\% Gaussian points. Furthermore, it outperforms all compared baselines in both rendering quality and memory efficiency.