The value of Skale Network can be considered to derive from Ethereum – which is not a bad thing given the position of Ethereum. It is the queen of the cryptocurrencies, second only to Bitcoin. While critics often debate about the value proposition of Bitcoin and its viability as a mode of payment, there is virtually no doubt about the value proposition of Ethereum. Ethereum is the pioneer of the decentralized finance sector and the DeFi has proven to be one of the best performing segments of the market with various use cases.
However, Ethereum made it evident in the 2021 bull run that it is not built for a mass scale adoption. The network suffered from congestion and exorbitantly high gas fees because of the high levels of activity on the platform. The upcoming shift towards the Proof-of-Stake consensus is believed to solve the problems of scalability of Ethereum but apart from that independent scaling solutions like Skale Network also play a vital role in the network.
What is Skale Network?
Skale Network is a Layer-2 scaling solution for Ethereum. Layer-2 solutions operate as independent smart contracts or sidechains on top of another blockchain while providing additional functionalities. Skale Network enables users to deploy decentralized applications allowing them to bypass the notorious network congestion on Ethereum’s network. Skale provides a cost-effective and high-throughput environment for decentralized applications.
The unique offering is the simultaneous deployment of multiple Elastic Sidechains. The Elastic Sidechains are customizable blockchains which gives users the ability to determine their chain size, consensus protocol, parent blockchain, virtual machine and various other features. Users pay a monthly subscription fee in Skale Network’s native token, SKL. The sidechains are then used for the deployment of decentralized applications.
SKL future outlook
There is little to no doubt about the future potential of Ethereum and Ethereum is expected to boost Skale Network with itself; hence, the future outlook of the network is also bullish. According to the estimates of Wallet Investor, the cryptocurrency is expected to be operating at a price level of $0.63 in a year’s time. The upward trajectory is believed to continue over the years and the price can reach $1.72 in five years’ time. Digital Coin Price projects a similar trajectory for SKL token. Per their estimates, the token is expected to close the year at $0.65 and reach towards $1.51 by 2026.
At the time of writing, SKL token stands at a price level of $0.43. The price has been moving downhill with a 7% decrease in the daily timeframe.