The Skale Network price crashed to the lowest level since March 29th as the momentum in digital currencies eased. The SKL price is trading at $0.2220, which is about 30% below the highest level last week. As a result, its total market cap has dropped to about $824 million, making it the 120th biggest coin in the world.
What is Skale Network?
Skale Network is a blockchain project that seeks to help developers build quality decentralized applications. It is an Ethereum Virtual Machine (EVM) compatible platform that hoped to become the main platform for development.
Skale Network has several features. For example, it has a modular, customizable and fast layer 2 bridge that makes apps significantly faster. It also has on-chain file storage features and zero end-user gas fees and is fully decentralized with 150 nodes. Some of its validator partners are firms like Ankr, Blockdaemon, Figment, and Staked.
The Skale Network price has been in a strong bullish trend in the past few months as investors hope that it will become the leading layer 2 platform in the industry. The rally accelerated when the network announced a $100 million ecosystem incentive program.
The initial $5 million will go towards developers building gaming applications in its platform. The rest of the funds will go to other developers building apps in industries like decentralized finance (DeFi) and non-fungible tokens (NFT).
Why has SKALE plummeted?
SKALE has declined sharply in the past few days as many investors exit as they take profit. This is happening a few days after the coin rose close to its all-time high. Historically, assets tend to decline sharply after going parabolic. We have seen this in other fast-growing platforms like ApeCoin and Internet Computer.
The Skale Network price is falling as investors worry about its lack of ecosystem. Unlike other similar platforms, Skale does not have a strong ecosystem already. Therefore, it will struggle to gain market share in the coming months considering that the industry has gotten saturated with the likes of Polygon and Solana.