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SKALE price prediction: A scalable Ethereum solution

15:01, 9 August 2022

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SKALE’s black logo on a purple background
Developers can pay for SKALE’s resources, such as storage and bandwidth, through its SKL cryptocurrency – Photo: WindAwake / Shutterstock

Ethereum has often been criticised for being inaccessible, the reasons include its high gas fees and lack of scalability. 

Aptly-named SKALE is on a mission to change this. The Ethereum layer is a developer-focused network that is bringing low fees to its users. Not all are convinced by its SKL token as it has recently crashed to its all-time low.

But, some forecasters think it could soon be on a recovery path.

What is SKALE (SKL)?

SKALE argues “blockchains should not be difficult or expensive to use”. The SKALE Ethereum layer is bringing a solution by being optimised for user experience with a fast network and zero fees for users.

Its entry on CoinMarketCap says:

“SKALE is described as an elastic network that’s designed to bring scalability to Ethereum. As well as boosting transaction capacity, the decentralized project aims to reduce latency and ensure that payments can be made as cheaply as possible.”

The Ethereum layer wants developers to think of its platform as a cloud or hub for decentralised applications (dApps). SKALE is encouraging developers to build on its platform, which prioritises both decentralisation and security.

Since launching in late 2020, SKALE has been used across the Web 3.0 industry, whether that is crypto gaming, decentralised finance (DeFi), non-fungible tokens (NFTs), or decentralised autonomous organisations (DAOs).

Jack O’Holleran and Stan Kladko are the co-founders behind SKALE. CEO O’Holleran comes from a background in technology entrepreneurship and has specialised in blockchains. Meanwhile, CTO Kladko has a PhD in physics and has spent 16 years working as a technology executive in Silicon Valley.

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The SKL token

SKALE has created its own ERC-20 token to encourage users and incentivise developers. Users are rewarded for running the network and improving the scalability with the SKL cryptocurrency.

Its whitepaper says:

“The SKALE token is a hybrid use token which represents the right to work in the network as a validator, stake as a delegator, or access a share of its resources by deploying and renting an Elastic Sidechain for a period of time as a developer.”

The cryptocurrency is used as a payment source for developers accessing these resources. It is the validators who are rewarded with these fees in exchange for powering the transactions.

SKL’s past performance

SKL price chart

Source: CoinMarketCap

SKL launched on 2 December 2020 with an opening price of $0.074, according to CoinMarketCap, and saw a steady climb at the beginning of the following year. The cryptocurrency managed to peak at $0.391 on 11 February 2021.

BTC/USD

19,158.20 Price
+0.990% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 21:00 (UTC)
Spread 66.00

ETH/USD

1,323.44 Price
+2.100% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 21:00 (UTC)
Spread 5.50

DOGE/USD

0.06 Price
-0.260% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 21:00 (UTC)
Spread 0.00080

SHIB/USD

0.00 Price
-0.450% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 21:00 (UTC)
Spread 0.00000035

It continued this momentum into March as it saw its most substantial rally to date. After being listed on Coinbase, SKL rocketed to its all-time high of $1.22 on 12 March.

SKALE appeared to be gathering attention that month as it climbed into the top ten assets by staked value. It was also listed on the OKEx exchange with a USDT pairing on 29 March. 

But after fluctuating around the $0.70 mark in April, SKL eventually crashed below $0.20 in July.

Its next rally was more gradual with SKL rising in early August. The token was only able to muster a daily high of $0.49 on 16 September. This was as SKALE ran a hackathon that encouraged developers to build on the network. A total of $12,000 worth of SKL was up for grabs.

Yet, the token’s value eventually fell in late 2021 and continued to decline into the new year, along with the rest of the bear market. Despite an intraday high of $0.31 on 2 April 2022 as it geared up to launch the network’s second version, it has been stuck in a depreciating trend. By 13 July, it stooped to its all-time low of $0.039.

It has recovered since crashing to this low.

As of 9 August, SKL was trading at $0.065, up 15.57% on the past week and ranked 133rd on CoinMarketCap.

SKALE price prediction

There were some bullish SKL price predictions. At the time of writing, TechNewsLeader said it might have climbed to $0.15 in a year and $0.34 in 2025. Its SKALE price prediction for 2030 anticipated a new all-time high of $2.18.

Similarly, PricePrediction said SKL would have averaged out at $0.11 next year. Its SKALE price prediction for 2025 gave a maximum price of $0.27. This value was thought to have shot past $2 in 2031 and achieved a minimum of $2.19.

An even more optimistic SKL price prediction was provided by CaptainAltcoin. It said: “SKALE Network could reach $1 by the end of 2025.” However, the forecaster’s SKALE coin price prediction suggested it would only have been worth $0.34 in 2030.

A gradual rise was expected by DigitalCoinPrice. The SKALE price prediction for 2022 anticipated an average of a fraction over $0.08 this year and nearly $0.10 next year. By the next decade, SKL was thought to have reached a maximum of $0.31 by 2030.

When considering a SKL token price prediction, it’s important to keep in mind that cryptocurrency markets remain extremely volatile, making it difficult to accurately predict what a coin or token’s price will be in a few hours, and even harder to give long-term estimates. As such, analysts and algorithm-based forecasters can and do get their predictions wrong.

If you are considering investing in cryptocurrency tokens, we recommend that you always do your own research. Look at the latest market trends, news, technical and fundamental analysis, and expert opinion before making any investment decision. Keep in mind that past performance is no guarantee of future returns. And never trade with money that you cannot afford to lose.

FAQs

How many SKALE coins are there?

As of 9 August, there was a circulating supply of 3.68 billion SKL and a maximum supply of seven billion tokens.

Is SKALE a good investment?

SKALE has built a scalable Ethereum layer, which is accessible for developers and has no fees for its users. SKL was designed to finance the platform and act as a payment source by developers. But its value has crashed in recent months.

In volatile cryptocurrency markets, it is important to do your own research on a coin or token to determine if it is a good fit for your investment portfolio. Whether the SKL token is a suitable investment for you depends on your risk tolerance and how much you intend to invest, among other factors. Keep in mind that past performance is no guarantee of future returns. And never invest money that you cannot afford to lose.

Will SKALE go up?

At the time of writing, some forecasters expected SKALE to start rallying, such as a TechNewsLeader which suggested it could reach a new high of $2.18 in 2030. But you should bear in mind that predictions are often incorrect.

Cryptocurrencies can be highly volatile and prices can go down just as easily as they can go up. Analysts and algorithm-based forecasters can and do get their predictions wrong. Keep in mind that past performance is no guarantee of future returns. Always do your own research. And never invest what you cannot afford to lose.

Should I invest in SKALE?

The SKALE Ethereum layer is being used by multiple dApps, including crypto games and DeFi protocols. But not everyone is warming to the SKL token as it has been depreciating since its April high.

This is a question that you will have to answer for yourself. Before you do so, however, you will need to conduct your own research and never invest more money than you can afford to lose because prices can go down just as easily as they can go up.

Further reading:

 

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