SKALE (SKL) tests ATH when Ethereum gas fees are still high

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).

CZ tweet:

“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.

Justin Sun continued his efforts to draw the spotlight for Tron

Justin Sun pointed out that there were 3,000 Bitcoins wrapped on Tron. This happened when Bitcoin broke $ 11,000 for the third time this year. But does Tron have a future as an Ethereum killer?

Sun is known to be an excellent marketer, having launched a decentralized exchange (DEX) on Tron after the successful Ethereum-based Uniswap. A few weeks later, after the success of profit farming and token meme, he launched a similar token called Sun.

By the time Sun tweeted Tron-wrapped Bitcoin was gaining in popularity, he received some skeptical responses. Mikel Roberts, a cryptocurrency advocate on Twitter said the idea of ​​Bitcoin wrapped on Tron makes no sense.

Sun also reached out to users wanting to help push Bitcoin on Tron. Tron has seen a significant increase in traffic lately, especially on decentralized apps (dApps).

Now with more than $ 616 million in Bitcoin wrapped on Ethereum, Sun is here again. Just like a person using Bitcoin wrapped on Uniswap, someone can use Bitcoin wrapped on Tron’s JustSwap.

Sun used DeFi to push Tron up for months and that paid off. Some see dApps as a way to revolutionize human relationships with technology. The leader of this new wave is Ethereum, which has seen a staggering increase in usage over the past few months.

Unfortunately for Ethereum, the terrible fees caused by the network congestion with dApps have directed users to other networks. This gave Tron a chance to shine. But when the ETH fee decreases the light will fade away.

“DeFi ecosystem transaction volume in Q3 2020

Trading volume increased by 2,577%.

TRON’s DEX portfolio holds 41% market share in total volume.

The dApps helping the directory grow is JustSwap ”.

The second most popular blockchain

The third quarter of 2020 was an explosion for DeFi. Trading volume increased by $ 113 billion to $ 125 billion, up 90% from the previous quarter. While Ethereum has around 96% of traffic, other smart contract blockchains have tried to follow the trend of Ethereum.

Tron Dapps | Source: Dappradar

According to Dapprader, a website that tracks data from dApps, Tron and EOS are the second and third most popular blockchains for dApps. Tron took the lead in Q3 with more than $ 1.8 billion in traffic, a modest figure compared to Ethereum’s $ 119 billion. However, Tron’s popularity is still skyrocketing.

Unfortunately, Dapprader has reported that up to 60% of dApps on Tron fall into the category of “gambling and high risk”. A quick look at the top-ranked Tron-based apps reveals some legitimate offerings, but some of the listed candidates are at high risk as Ponzi schemes.

For example: Forever Tron, the Tron No. app. 6 provides a daily return on investment up to 20% for the staking.

Overall on the Tron network, the unique new wallets were up 586% and the gambling / high risk volume on Tron increased by a whopping 2,725%.

Forever Tron is likely to be a high-risk Ponzi scheme

The famous Wink gambling website (which can be staked with a huge profit farming opportunity on Sun.io sponsored by Tron) has a 24-hour trading volume of $ 13 million.

Here comes Sun

In contrast to high-risk dApps, Tron also offers a number of exchanges, including the Tron-sponsored decentralized exchange JustSwap. Justin Sun has launched Justswap as Tron’s answer to Uniswap.

Transaction volume Justswap | Source: Justswap.io

JustSwap appears to have followed Uniswap since its launch, partly supported by the promotion of SUN token mining. In September, Sun.io provided profits of hundreds of percent APY, paid out in the form of Sun tokens.

Some of the more widely used coins are also available on the Tron network. JustSwap users can trade Tron for Tether or Huboi tokens, along with a native USDJ stablecoin. Tron’s volume on October 10 was around $ 8 million, but on September 2 it had reached around $ 367 million. JustSwap still has over $ 100 million locked in liquidity.

Price Tron

Meanwhile, Tron’s price is up about 35% in Q3, from $ 0.017 to $ 0.026 at press time. Perhaps the bulk is due to the high risk and gambling websites.

The interface of Justwap and Tron wallets may mask the difference between Tron and Ethereum, but the user experience is virtually the same. Low transaction costs may be related to Tron’s growth.

Whether or not the increase in volume and price heralds a big profit for Tron in Q4 remains to be watched. Technology and marketing both seem to play a major role in Tron’s massive growth, but things could change if “Las Vegas on the blockchain” is central.