- Skale Network is a fast-growing sidechain network.
- Its price surged to the highest point since December.
- But it also became extremely overbought.
The Skale Network price has bounced back in the past few days as investors cheer the platform’s growth. The SKL token is trading at $0.2770, which is the highest it has been since December 2021. It has risen by more than 189% from its lowest level this year. As a result, its total market cap has jumped to over $955 million, making it the 112th biggest coin in the world.
What is Skale Network and why is it rising?
The blockchain industry has grown rapidly in the past few years. This performance has been driven mostly by sectors like Decentralized Finance (DeFi), Non-Fungible Tokens (NFT), and the metaverse.
Ethereum has become the most important platform in the industry. Indeed, most of the decentralized apps you know like Axie Infinity and Decentraland were all built using Ethereum’s technology.
But Ethereum is a lagging platform that is known for slow speeds, high gas fees, and other challenges. To address this, developers have come up with alternatives to Ethereum such as Solana, Polkadot, and Avalanche.
Another approach developers are using is known as layer 2 networks like Polygon and Loopring. These platforms help to supercharge Ethereum’s network by accelerating their apps out of the network.
Skale Network uses the same approach to increase throughput and reduce latency, and lower cost of Ethereum applications. It is a sidechain that uses a configurable byzantine fault tolerant (BFT) technology.
One of the main reason why the Skale Network price is rising is that developers are getting more interested in the network. For example, in a statement on Thursday, Skale announced that CLET Name Service was planning to launch on the platform. CLET describes itself as the first human-readable cryptocurrency wallet name service. The CEO said:
“Everyone in the blockchain space needs Clet in their toolbox as it simplifies the most important fundamentals of cryptocurrency transactions.”
Skale Network price prediction
The daily chart shows that the SKL price has made a spectacular recovery in the past few days. Along the way, it managed to move above the important resistance at $0.1766, which was the lowest level in July last year. It also crossed the important resistance level shown in the descending trendline in purple.
Further, the Skale Network price managed to move above the 25-day moving average while the Relative Strength Index (RSI) has moved to the highest level on record. This signals that the coin is extremely overbought and that its price will resume the bearish trend. Here are some of the best cryptocurrency brokers to invest in Skale.
