Right now in Worlds Adrift the grappling hook doesn’t level up or gain upgrades. This could always change, but right now it takes quite a bit of practice to get competent with it, and even longer to genuinely get good at it. So in some sense you do increase your skill by using it, but that leveling up happens in your brain and hands, not your computer!
The rope just like any other object within the game is also persistent in such a way that it can be wrapped about a tree.
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Just like a pendulum if a player needed to speed up during the swing the rope must be shortened and for slowing down the rope would need to be lengthened.