The SKALE system and its SKL coin garnered some interest in the summer of 2023. The news that it was teaming up with the DappRadar platform to give users a new, cleaner, dashboard potentially got more people interested in the token.
With SKALE, a platform which allows people to create their own Ethereum sidechains, trying to make itself more user-friendly, can the SKL token reach the sorts of levels in enjoyed in 2021?
But what is SKALE (SKL)? How does SKALE work? Let’s see what we can find out, and also take a look at some of the SKALE Price Predictions that were being made as of August 1 2023.
The system is, in effect, a kind of enhanced layer 2 scaling solution. This means that one of the things it does is take transactions off Ethereum, carry them out, and then put them back on the blockchain.
Skale, which was founded in 2020 by computer scientists Stan Kladko and Jack O’Halloren, is supported by its native token, which goes by the ticker handle SKL.
Skale uses a series of sidechains, operated by computers, or nodes. These chains are linked to a series of smart contracts, computer programs which automatically execute once certain conditions are met. Developers can set up their dApps on sidechains.
SKL is used to pay for sidechains for dApps. It also pays for nodes and is used to reward node operators. Holders can vote on changes to the network, and it can also be bought, sold, and traded on exchanges.
It is important to note that, since SKALE is based on Ethereum, it is a token, not a coin. You might see references to such things as a SKALE coin price prediction, but these are wrong.
Now, let’s take a look at the SKALE price history . While we should never take past performance as an indicator of future results, knowing what the token has achieved can provide us with some very useful context if we want to make or interpret a SKALE price prediction.
SKALE first came onto the open market in December 2020, when it closed the year at $0.079. It responded well to a blossoming crypto market in early 2021, and it reached an all-time high of $1.22 on March 12.
SKALE then dropped, falling below $0.20 in July, before enjoying a recovery to over $0.40 in September before going down again to trade at $0.2027 on December 31. This meant that SKL rose by more than 155% year-on-year.
The downturn continued in 2022. Despite a spike seeing it rise above $0.40 in early April, a series of market crashes saw SKL reach an all-time low of $0.01964 on New Year’s Eve. This meant the token suffered an annual loss of more than 90%.
Things got a little bit better in 2023. The token went up to $0.06537 on February 20. It then fell down, suffering in the wake of July’s news that the United States Securities and Exchange Commission (SEC) was suing the Binance and Coinbase Exchanges. Once Crypto.com suspended its US institutional operations on June 10, SKL dropped to a low of $0.02303.
There was something of a recovery after that, and SKL traded at $0.03009 on July 14. Since then, though, it has struggled and, on August 1 2023 it was worth about $0.0271.
At that time, there were about 4.6 billion SKL in circulation out of a total supply of 5.4 billion. This gave the token a market cap of 126.5 million, making it the 172nd largest crypto by that metric.
SKALE has been on an overall downturn over the last couple of months or so. From June 5, when the SEC launched its legal cases and SKL was worth $0.03395, it fell more than 30% in just five days. It then recovered by more than 30% by July 14, but has since dropped nearly 10%.
More worryingly, it is down 20% from pre-crash levels. On the other hand, it is up more than 35% since the start of the year.
With that all said and done, let’s examine some of the SKALE price predictions being made on August 1 2023. It is crucial to bear in mind that price forecasts, particularly for a potentially volatile asset like cryptocurrency, often turn out to be inaccurate. Additionally, please remember that many long-term crypto price predictions are generated using algorithms, which means they can change at any time.
First, CoinCodex had a short-term SKALE price prediction that saw the token drop to $0.02514 by 6 August before recovering to $0.02985 by the end of the month. The site’s technical analysis was bearish, with 24 indicators sending negative signals and just two making bullish ones.
In terms of other SKALE price predictions for 2023, DigitalCoinPrice said it would get to $0.0574. CaptainAltCoin saw SKL fall to $0.019 by October before reaching $0.0221 in December. PricePrediction.net thought the token would trade at $0.042 this year.
CaptainAltCoin made a SKALE price prediction for 2025 that saw the token hit $0.0554, while DigitalCoinPrice thought it would trade at $0.0953. PricePrediction.net thought it would be worth $0.083 in two years time.
Moving onto a more long-term SKALE price prediction for 2030, PricePrediction.net said the token would hit $0.56, while CaptainAltCoin thought it would be worth $0.1385. DigitalCoinPrice had a SKL price prediction that saw it reach $0.1385 at the start of the next decade.
It is hard to say. The news that it is creating a new dashboard could be seen as a sign that it has been working hard on improving its users’ experiences on the system.
On the other hand, SKL has been stuck in a rut, and it could be argued that SKALE is a classic case of a crypto platform trying to do too much and not focusing on one thing.
As ever with crypto, you will need to make sure you do your own research before deciding whether or not to invest in SKL.
No one can really tell right now. While the SKALE crypto price predictions are largely positive, price predictions have a well-earned reputation for being wrong. Keep in mind, too, that prices can, and do, go down as well as up.
Before you decide whether or not to invest in SKALE, you will have to do your own research, not only on SKL, but on other, related, coins and tokens such as Optimism (OP) or Arbitrum (ARB). Either way, you will also need to make sure that you never invest more money than you can afford to lose.
On August 1 2023, there were about 4.6 billion SKL in circulation out of a total supply of 5.4 billion.
It might do, but maybe not for a while. PricePrediction.net says it will break past the dollar in 2032.
Keep in mind that, while SKALE has traded at more than $1, it has not done so since March 2022.
SKL is used to fund nodes, pay rewards, and give holders voting rights on the SKL network. It can also be bought, sold, and traded on crypto exchanges.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.