Skale price prediction: What is Skale (SKL)?

• Updated

Can SKALE rebound after a roller-coaster 12 months?

The SKALE logo, showing a letter S and a geometric shape in white, within a pale blue geometric circle, on a darker blue background                                 
Skale traded above $1 last year – Photo: Shutterstock
                                

Contents

The SKALE Network and its associated SKL crypto have something of a significant following. The cryptocurrency is currently the 143rd-largest by market cap, according to data from CoinMarketCap.

So what is SKALE (SKL)? How does SKALE work? What is the latest SKALE price prediction? Let’s take a look. 

SKALE explained

SKALE is a network that operates on the Ethereum blockchain. This means that, technically, the SKL cryptocurrency is a token, rather than a coin, although you will see terms like SKALE coin and SKALE token being used interchangeably. 

The idea behind the SKALE network is to create a system of separate Ethereum-based blockchains which can, it says, bring so-called Web3 to internet users around the world.

The network contains a series of computers, or nodes, that validate and approve the transactions on the chains. They link up with a series of smart contracts on the main Ethereum blockchain called SKALE Manager in order to operate.

People can use decentralised applications, or dApps, on the SKALE network. DApps can request a certain-sized SKALE chain to operate on and use their SKALE tokens to help their chain run. SKALE is a layer-2 network, which means that it works independently of Ethereum, while still making use of its facilities. 

There are some different uses for the SKL token. First, it can be staked by holders to the validators who run nodes in return for SKL rewards. Second, as we have already seen, people who run dApps on the networks can use SKL to sponsor the individual chains on the network. Third, validators also get paid out in SKL, giving them a motive to continue providing their services. Finally, holding SKL gives holders the right to vote on potential changes to the SKALE network. 

The organisation behind SKALE was founded in 2017 by Konstantin ‘Stan’ Kladko, who is based in Santa Clara, California, and Jack O’Holleran, based in San Francisco. O’Holleran, who serves as CEO, has a background in both machine learning and blockchain, while Kladko, the chief technical officer, has a physics PhD and is an active member of the Ethereum Research Foundation. 

From the SKALE white paper

As far as the SKL token itself is concerned, the coin’s white paper says: “SKL is a utility token that serves as a fundamental mechanism in the security of the network. A significant amount of tokens are staked into the network by validators and delegators as provided by chain sponsors for the provision of SKALE chains.”

The document also states: “SKALE proposes a decentralised, configurable network of on-demand blockchains that support high-throughput, low-cost, and low-latency transactions enabled with storage capabilities and advanced analytics. Additionally, SKALE proposes messaging protocols that enable participants to communicate between these disparate systems.”

Skale price history

Skale’s price history will not be any failsafe indicator of future results, but it can be useful to know what the cryptocurrency has done in the past when it comes to both making and analysing a SKALE price prediction. 

When Skale first came onto the open market in December 2020 after an initial coin offering (ICO) raised $5.25m, it was worth about $0.08. The coin’s price fluctuated to begin with, but it closed the year at $0.079. SKL then rose slowly throughout January, breaking 10 cents to close the month $0.1334. Further growth followed in February, before early March saw it experience a serious bull run.

By now the cryptocurrency market was booming and SKL was caught up in the action. On 7 March, it stood at $0.314. It then shot up and up, reaching an all-time high intraday on 12 March of $1.22, meaning it had gone up nearly fourfold in the course of five days.

The high was short-lived. SKALE closed the day at $0.8821. But at least some of the gains remained, with the coin trading throughout March and April around $0.70, dipping down to around $0.50 in May. 

When the Great Crypto Day Crash of 19 May happened, Skale lost a good chunk of its value and spent most of the summer trading at around $0.27. 

In August the cryptocurrency market rebounded from the events of May, with SKL following suit to close the month at $0.4053. To put that figure into context, the coin had opened 19 May at $0.5689. There was still some way to go before it truly recovered. What form this recovery will take is still a matter of debate, as the coin dropped to close September at $0.2961.

October was better, with it finishing off at $0.3411. While some cryptocurrencies did very well in November, Skale was not really one of them, reaching a monthly high of $0.4214 on November 25 before dropping back to close the month at $0.3168.

By then, the market was contracting as concerns relating to the Omicron variant of Covid-19 struck, and Skale shrivelled in December, closing the year at $0.2014. January 2022 saw a further decline, with the token closing the month at $0.1136.

There was some recovery in early February, though, and as of 15 February the coin was trading at around $0.1592. The coin however continued on its descent, hitting a 12-month low of $0.12 towards the end of February. 

However, March brought much more positive price movement. More developments in the NFT space were announced on Twitter, prompting a price rally: 

The coin met a new five-month high of $0.3279 on 31 March. However, following a market-wide downturn, there has been a steep correction since that price point.

By 13 July, the token was trading at a new all-time low of $0.03933. The token has however gained some momentum and towards the end of July announced the following on Twitter: 

According to the organisation’s blog: “SKALE’s goal is to bring the power of Ethereum to 1 billion users. This release optimises SKALE’s ability to support booming categories like NFTs, Web3, Metaverse, and Play-2-Earn gaming. These high-growth consumer-centric categories require a phenomenal user experience at low costs and with minimal bridging friction, a core strength of the SKALE Network.”

At the time of writing on 2 August, the coin is trading at $0.05855. The coin’s market cap is around $215m, making it the 135th-largest crypto by that metric. There are 3.68 billion SKL in circulation, out of a total supply of around 4.28 billion.

Skale price forecast

Cryptocurrency forecasts, especially long-term ones, can very often be wrong. Longer-term crypto price predictions are often made using an algorithm that can change at any moment. 

PricePrediction.net has an SKL price prediction that suggests the token should score an average of $0.099 this year before reaching $0.14 in 2023, $0.19 in 2024 and $0.27 in 2025. The site’s Skale coin price prediction for 2026 sees it reach $0.40 before hitting $0.60 in 2027, and $0.90 in 2028. The coin is expected to break the dollar in 2029, and reach an average value for the year of $1.29. There will be more price growth, making a Skale price prediction for 2030 of an average of $1.80, before it stands at about $2.57 in 2031. 

CryptoNewsZ is less bullish about what the token can do in the coming years, with an SKL price prediction that sees it hit a maximum of $0.31 in 2022 before rising to about $0.34 in 2023 and down to $0.32 in 2024. The site makes a Skale price prediction for 2025 of an average of $0.44, while the year after that it should stand at around $0.42. In 2030, the site suggests that the cryptocurrency can get to about $1.03.

Finally, DigitalCoinPrice is also upbeat but is ultimately more cautious than other forecasts. The site suggests that Skale can get to $0.0880 in September and $0.0802 in December. The site forecasts an average of $0.0874 in 2023 and $0.0933 in 2024, then $0.11 in 2025 and  2026. In 2027, Skale should hit $0.14 and hit $0.19 in 2028. In 2029 it sees Skale hitting $0.24, before trading in 2030 at $0.27, and reaching $0.31 in 2031. 

Final thoughts

A few final points before we finish. Firstly, Skale has ultimately gone down from where it was 12 months ago. This is a bit of a worry, as even some coins that are very much in the doldrums now used the boost given to their prices by the boom of early 2021 to maintain a relatively high price.

The SKALE network must do a lot to keep up with the competition in the rapidly maturing digital asset space, but as macro headwinds push the total value of the crypto market up, the Skale token might have the opportunity to run with the bulls.

Secondly, SKALE is one of many layer-2 systems operating on Ethereum. We will have to see whether it can gain traction and become, if not the main layer-2 system, then at least one of the main ones. The network has a fair few rivals, and the recent price stagnation may end up driving potential users away. We shall have to see what, if anything, develops. 

FAQs

On 2 August 2022, there were 3.68 billion SKL in circulation, out of a total supply of around 4.28 billion and a max supply of 7 billion tokens.

It can be argued, at least by proponents of buying during dips, that now might be a good time to invest in Skale. That said, some caution is needed. We have seen the price of SKL go down quite a bit over the past 12 months, despite some significant bull runs.

Remember, cryptocurrencies are highly volatile and prices can go down as well as up. You will need to do your own research and never invest more than you can afford to lose.

Supporters of buying the dip might well tell you that cryptos like SKL, which has ultimately lost value over the past 12 months, are worth looking into. On the other hand, it has been in a bearish place for some time now.

Regardless, you will need to remember that cryptocurrencies are highly volatile and prices can go down as well as up. You will need to do your own research and never invest more than you can afford to lose.

This is a question that only you can answer. Before you do so, you will need to remember to do your own research and that prices can go down as well as up. Perhaps more importantly, you must make sure never to invest more money than you can afford to lose. 

Further reading

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