Why Did SKALE Network (SKL) Drop? - 23.11.2023

SKL coin, the native cryptocurrency of the Skale Network, is used for various purposes on the network. SKL coin can be used to pay transaction fees, participate in network governance, and be used in various ways in DeFi applications.

SKL coin is an important part of the Skale Network, which helps solve the Ethereum network's scalability problem.

Looking at recent on-chain data, some of the transfers that have taken place have attracted attention. One of these interesting transfers was transactions involving more than 53 million SKL. With this transaction, the said amount of SKL was sent to a central exchange.

When performing on-chain analysis, if a cryptocurrency is sent from an external wallet to an exchange, this is usually interpreted as a sale. It is estimated that this transfer on the SKL side may have created the same perception and may cause panic in investors. This may be the reason for the 17% drop in SKL's price.

SKL is trading at 1,484 liras, down 17% in the last 24 hours.