Skale Network price has struggled in the past few weeks even after some positive statistics in the network. SKL price slipped to a low of $0.05, which was the lowest level since July 26th of this year. It has fallen by more than 88% from its all-time high, giving it a market cap of over $180 million.
What is Skale Network and why is it struggling?
Skale Network is a relatively small but fast-growing blockchain project that uses advanced cryptography and pooled security model. The network allows developers to deliver an exceptional experience to end-users free of any gas fees and latency.
It is an Ethereum Virtual Machine (EVM) compatible network that has virtualized subnodes that can help handle over 10 million transactions per day per chain. Skale uses the Asynchronous Binary Byzantine Agreement protocol and interchain messaging. SKL is the native token for the ecosystem.
Skale Network price is soaring because of the ongoing network adoption ahead of the upcoming Ethereum merge. Merge will transition Ethereum from a proof-of-work (PoW) into a proof-of-stake (PoS) platform. The transition will then make it possible for developers make future upgrades like sharding.
For example, CryptoBlades, a leading gaming platform has been using Skale Network in the past few months. During this time, it has handled over 3.5 million transactions and saved users ETH worth over $20.6 million.
This month, Razor Network launched on Skale Network. Razor is a decentralized oracle for decentralized finance platforms. It can be used in stablecoins, atomic swaps, insurance, and other areas of finance. An oracle network’s goal is to transition off-chain data to on-chain platforms. Some of the most popular oracles are Chainlink and Band Protocol.
Skale Network price has also jumped as activity in the ecosystem bounce back. In the past 30 days, the number of active users has jumped to over 23,800 while the total number of transactions has jumped to over 2.66 million. In total, Skale has saved users over $34 million gas fees.
Skale Network price
The daily chart shows that the SKL price has been in a downward trend in the past few months. During this time, the coin managed to move below the important support level at $0.094, which was the lowest level on January 21.
It has also fallen below the 25-day and 50-day moving averages while the Relative Strength Index. A closer look shows that it is forming what looks like a double-bottom pattern. As such, there is a likelihood that the coin will soon bounce back.