SKL is trying to set a new all-time high as the solution to providing scalability for Ethereum-based projects, aiming to gain momentum amid record high gas fees.
SKL to the Moon
Ethereum SKALE Network scaling solution with native token is SKL. SKL is currently retesting its all-time high just a few days ago. SKL just hit $ 0.381 on Feb. 11 according to data from CoinGecko, up 484% in less than 2 months.
After cooling off on Feb. 12, SKL regained momentum on the 13th. It rose more than 10% to reach $ 0.373 in a broader market that is largely stagnant.
The SKALE network aims to provide a solution to the scalability problems on Ethereum. Dubbed the “elastic” blockchain network, the project developed over the years before listing its first exchange last year.
SKALE expands Ethereum
SKALE proposes to solve the Ethereum scalability problem by allowing developers to create a secondary blockchain. These fully decentralized chains will be immediately compatible with the Ethereum network. The construction of such chains helps developers to connect projects directly to Ethereum.
However, SKALE’s technical proposal is to allow developers to use SKALE’s strings. These chains can process 2,000 transactions per second, for which developers create highly computationally intense applications.
These applications can range from machine learning to fully decentralized exchanges. Indeed, developers and users can also avoid the gas price spike when the Ethereum network becomes congested.
Alternatives gain attraction
SKALE solutions appear as users increasingly turn to other smart contract platforms. This is because Ethereum fees make it expensive to use.
The increase was most evident on decentralized exchange (DEX) Uniswap. Platform users can see a one-time fee of more than $ 70.
Of course, such fees make most transactions on the DEX too expensive to regulate. Because of this, many DEX users started looking for alternatives like PancakeSwap (CAKE) that works on Binance Smart Chain (BSC).
“Spend over $ 100 on ETH gas fees just to send tokens. Out of the very few times in my life, I feel rich and stupid. ”
However, Ethereum continues to attract the support of the crowd that has always been loyal to Buterin. Partly because the second cryptocurrency (by market cap) is currently trading at $ 1,806 according to CoinGecko. What’s more, it shows little signs of slowing down.
This leaves ETH just over $ 60 from its all-time high of $ 1,830. If ETH continues to maintain these levels, gas prices are likely to remain high. As a result, more developers may continue to look for other platforms and solutions like SKALE will gain traction.