SKL is attempting to set a new all-time high as its solution to provide scalability for Ethereum-based projects gains momentum amid record-high gas fees.
SKL to the Moon
The Ethereum network scalability solution SKALE network is seeing its native token, SKL, re-test an all-time high set just days ago. SKL just soared to $0.381 on Feb 11. according to data from CoinGecko. This level represents a 484% rise in less than two months.
After spending much of Feb. 12 cooling off, SKL regained momentum on the 13th. It gained over 10% to reach $0.373 in a wider market that is largely stagnant.
SKALE network aims to provide a solution to Ethereum’s scalability issues. Dubbed the “elastic” blockchain network, the project was in development for several years before its first exchange listing last year.
SKALE to Scale Ethereum
SKALE proposes to solve the issue of Ethereum scalability by allowing developers to create secondary blockchains. These fully decentralized chains would be instantly compatible with the Ethereum network. Building such chains enables developers to connect projects directly to the popular platform.
However, SKALE’s technical proposition is to enable developers to use SKALE’s elastic chains. These chains, which can process 2,000 transactions per second, let developers create computationally intense applications.
These applications could range from machine learning to fully-fledged decentralized exchanges. Indeed, developers and users would also be able to avoid surges in gas prices when the Ethereum network becomes congested.
Alternatives Gain Traction
SKALE’s solution comes as cryptocurrency users increasingly look to other smart contract platforms. This is because Ethereum fees make usage expensive.
The surge was best highlighted on the decentralized exchange (DEX) Uniswap. The platform’s users can see fees for a single “swap” reach over $70.
Of course, such fees render most exchanges on the DEX too expensive to justify. Because of this, many DEX users began looking to alternatives such as PancakeSwap (CAKE), hosted on the Binance Smart Chain (BSC).
Just spent $100+ on ETH gas fees, just to send a token. For the very few times in my life, I feel rich, and stupid.
— CZ
Binance (@cz_binance) February 6, 2021
Nevertheless, Ethereum continues to attract the support of the ever-loyal Buterin crowd. Partly for this reason, the second-cryptocurrency (by market capitalization) currently trades at $1,806.09 according to CoinGecko. Moreover, it shows little sign of slowing.
This puts ETH just over $60 off its all-time high of $1,867.06. If ETH continues to maintain these levels, gas prices are likely to remain high. Therefore, developers might continue to look for other platforms, and solutions like SKALE will gain traction.
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