Bootstrap
Trading Non Stop
ar | bg | cz | dk | de | el | en | es | fi | fr | in | hu | id | it | ja | kr | nl | no | pl | br | ro | ru | sk | sv | th | tr | uk | ur | vn | zh | zh-tw |

Why did the price of SKY go up?

Sky (SKY) jumped 9.85% in the last 24 hours, significantly outperforming the overall crypto market, which rose 2.16%. This surge is driven by positive updates in governance and strong technical signals.

  1. Governance-Backed Buybacks – Daily SKY buybacks have increased to 300,000 USDS, reducing the number of coins available.
  2. Boosted Staking Rewards – 500 million SKY tokens moved to the treasury to support staking rewards, increasing demand.
  3. Technical Breakthrough – The price moved above important moving averages, indicating upward momentum.

Deep Dive

1. Governance-Backed Buybacks (Positive Impact)

Overview:
On November 7, Sky’s Executive Vote approved increasing daily buybacks from about $1 million to 300,000 USDS (roughly 5.4 million SKY tokens at current prices). Additionally, 500 million SKY tokens were allocated to staking rewards. Since February 2025, buybacks have totaled $1.1 billion, cutting the circulating supply by about 3.28% (SkyEcosystem).

What this means:

What to watch:
Keep an eye on how consistently buybacks are executed and the level of participation in staking through Sky Governance.

2. Technical Momentum (Mixed Signals)

Overview:
SKY’s price recently rose above its 7-day Simple Moving Average (SMA) of $0.0537 and Exponential Moving Average (EMA) of $0.0538. The Relative Strength Index (RSI) is at 43.21, which is neutral. However, the price is still below the 30-day SMA at $0.0583, a key resistance point.

What this means:

Conclusion

Sky’s recent price jump is driven by strategic efforts to reduce supply through buybacks, increased staking rewards to encourage holding, and positive technical signals. While the outlook is optimistic, the 30-day SMA at $0.0583 remains an important hurdle.

Key point to watch: Can SKY maintain a price above $0.0555 and push past the $0.0583 resistance? Stay updated on governance actions and overall market trends.


What could affect the price of SKY?

Sky’s price is caught between positive changes in its governance and challenges from the overall crypto market.

  1. Staking & Buyback Changes – More frequent buybacks and rewards paid in SKY tokens aim to reduce supply.
  2. SparkLend Collateral Update – Phasing out old assets may cause short-term price swings.
  3. Market Sentiment Pressure – High fear in the crypto market is weighing on altcoins like SKY.

Deep Dive

1. Protocol Incentives Revamp (Positive for Price)

What’s happening:
Sky’s community recently voted to increase daily buybacks to 300,000 USDS (up from about 1.4 million USDS weekly) and switch staking rewards from USDS to SKY tokens. The protocol also set aside 500 million SKY (about $27.8 million) to fund these rewards.

Why it matters:
By buying back tokens daily and paying rewards in SKY, the protocol aims to reduce the number of tokens being sold on the market, which can help support the price. Previously, weekly buybacks removed around 17 million SKY tokens from circulation (Sky Governance). The new daily buyback amount (roughly 5.4 million SKY at current prices) might not fully counteract downward price pressure but is a step toward reducing token supply.

2. SparkLend Collateral Deprecation (Mixed Effects)

What’s happening:
SparkLend, an important project in the Sky ecosystem, is discontinuing the use of older collateral types sUSDS and sDAI starting November 7. Users will need to move their assets to new vaults.

Why it matters:
This update aims to improve risk management in the long run. However, the forced migration could lead to some short-term selling of the old collateral assets. Given SparkLend’s large total value locked ($11 billion), the system remains stable overall. Liquidity may shift toward newer SKY/USDS pools, potentially benefiting those markets.

3. Market Sentiment & Macro Pressures (Negative for Price)

What’s happening:
The crypto Fear & Greed Index is at 21, indicating extreme fear among investors. Bitcoin’s dominance is high at 59.3%, which usually means less interest in altcoins like SKY. SKY’s price movement is closely tied to Ethereum, with a 30-day correlation of 0.87.

Why it matters:
SKY is vulnerable to broad market sell-offs. Technical indicators show the price is trading 23% below its 30-day simple moving average (SMA) of $0.0587, and the Relative Strength Index (RSI) at 24.48 suggests the token is oversold but hasn’t yet shown signs of a price rebound.

Conclusion

Sky’s changes to token rewards and SparkLend’s updates could help stabilize prices over time. However, current market fear and weak technical signals suggest short-term risks remain. Keep an eye on whether the 300,000 USDS daily buyback can maintain demand, especially as the price approaches resistance near the 7-day SMA at $0.0538. The key question is whether governance-driven efforts to reduce supply can overcome the market’s cautious mood.


What are people saying about SKY?

The Sky (SKY) community is divided between excitement over buybacks and concerns about the overall health of the protocol. Here’s what’s trending right now:

  1. Strong buybacks are reducing the available supply – 1.12 billion SKY tokens have been repurchased since August.
  2. Staking rewards have increased, with $21 million in USDS paid out to token holders.
  3. New listings on Binance and Coinbase have sparked discussions about liquidity and trading activity.

Deep Dive

1. Buybacks Reach 3.28% of Supply – Positive Sign

According to @SkyEcosystem, last week the Sky Protocol spent 1.4 million USDS to buy back 16.9 million SKY tokens, bringing the total repurchased to 1.12 billion.
View original post
What this means: This is a positive development for SKY because buybacks reduce the number of tokens available on the market, which can support the token price. It also signals that the protocol is generating strong revenue, estimated at $230 million annually.

2. Staking Rewards Total $21 Million – Encouraging for Holders

@SkyEcosystem also reported that SKY token holders who stake their tokens have earned $21 million in rewards since June, with an annual percentage yield (APY) of 12.75% paid in USDS and SPK tokens.
View original post
What this means: High staking rewards attract investors to lock up their tokens, which can help stabilize the price. However, the long-term sustainability depends on the protocol maintaining its total value locked (TVL), currently at $1.4 billion, to keep generating revenue.

3. Total Value Locked (TVL) Hits 5-Year Low – A Warning Sign

Crypto analyst @CryptoPatel points out that despite SKY’s price increasing 190% year-to-date, the TVL has dropped to 1.87 million ETH, the lowest level since 2020.
View original post
What this means: This is a bearish signal because the price increase isn’t supported by growing usage or assets locked in the protocol. Declining TVL suggests fewer users and less activity, which could hurt the protocol’s future prospects.

Conclusion

The outlook for SKY is mixed. On one hand, buybacks and strong staking rewards are positive signs that can support the token’s value. On the other hand, the falling TVL and a 19% price drop over the past month raise concerns about the protocol’s long-term health. The recent listings on Binance and Coinbase have made SKY more accessible, but skepticism remains.

Keep an eye on the MKR→SKY migration completion rate, which stood at 56% as of August 5. Delays in completing this migration will face penalties starting September 18, which could increase selling pressure on SKY tokens.

{{technical_analysis_coin_candle_chart}}


What is the latest news about SKY?

Sky is making important updates as its ecosystem evolves, including changes to collateral, tokenomics, and yield strategies. Here’s a quick summary:

  1. Collateral Changes (November 7, 2025) – SparkLend is retiring older vaults and encouraging users to switch to new, improved ones.
  2. Increased Buybacks & Staking (November 3, 2025) – Governance approved higher daily SKY buybacks and more funds for staking rewards.
  3. New Yield Strategy (October 24, 2025) – $100 million moved from traditional Treasuries to crypto-focused yield products.

In-Depth Look

1. Collateral Changes (November 7, 2025)

What’s Happening:
SparkLend, a major lending platform in the Sky ecosystem, is phasing out older collateral types like sUSDS and sDAI. Users are asked to move their assets to new vaults managed by the Spark Liquidity Layer. This update aims to simplify risk management and improve returns.

What It Means:
This change is neutral for SKY holders. While it might cause some short-term disruption as users adjust, it could lead to better efficiency and stronger demand for USDS in the long run if the new vaults attract more capital. (CoinMarketCap)

2. Increased Buybacks & Staking (November 3, 2025)

What’s Happening:
Sky’s community voted to increase daily SKY buybacks to 300,000 USDS (up from about $250,000) and allocate 500 million SKY tokens (around $27.8 million) to the treasury for staking rewards.

What It Means:
This is positive news for SKY. More buybacks reduce the number of tokens available on the market, potentially supporting the price. Plus, bigger staking rewards encourage holders to keep their tokens longer. However, SKY’s price can still be affected by overall market trends—it recently saw an 11.6% gain in 24 hours but a 19% drop over 30 days. (Yahoo Finance)

3. New Yield Strategy (October 24, 2025)

What’s Happening:
Spark, Sky’s decentralized finance (DeFi) branch, moved $100 million from low-yield government Treasuries into Superstate’s USCC fund. This regulated fund earns returns by trading crypto futures, offering higher yields.

What It Means:
This shift is good for diversifying Sky’s income. The USCC fund offers an 8.35% annual yield over 30 days, which is attractive compared to traditional options. It also keeps things compliant with regulations, which could bring in more institutional investors. Still, there are risks involved with crypto futures trading, like price swings and funding costs. (Blockworks)

Conclusion

Sky is carefully managing short-term challenges, like the collateral migration, while making strategic improvements such as boosting buybacks and exploring new yield opportunities. The big question is whether these changes will speed up USDS adoption or if stricter crypto regulations might slow down growth.


What is expected in the development of SKY?

Sky’s development is moving forward with these key milestones:

  1. Core Simplification Process (Q4 2025) – Simplify governance to speed up ecosystem growth.
  2. Powerhouse Spin-off Finalization (Q4 2025) – Make Powerhouse an independent company.
  3. SKY Buyback Expansion (October 2025) – Increase buybacks to strengthen liquidity.

In-Depth Look

1. Core Simplification Process (Q4 2025)

What it is: Announced in July 2025, this plan aims to cut down on complex decision-making in Sky’s governance. It will merge overlapping teams and better manage funds to help projects within the Sky ecosystem, called Stars, move faster.
Why it matters: This is good news for SKY holders because faster decisions can lead to quicker product launches, like new Stars such as Grove. But there’s a risk if the community doesn’t agree on the changes (SkyEcosystem).

2. Powerhouse Spin-off Finalization (Q4 2025)

What it is: Powerhouse, which supports Sky’s operations, is becoming its own separate company. As of November 2025, this process is about 39% complete. Important steps include setting up the legal structure, defining token rules for the spin-off, and linking it back to Sky’s governance.
Why it matters: This move could attract new partners and investments, which is positive. However, it might also reduce Sky’s control over some key parts of its infrastructure.

3. SKY Buyback Expansion (October 2025)

What it is: In October 2025, a vote approved increasing daily SKY buybacks from around 250,000 USDS to 300,000 USDS. Additionally, 500 million SKY tokens were set aside to reward staking participants.
Why it matters: This is a short-term positive because buying back tokens reduces the number available on the market, potentially increasing value. Long-term success depends on the protocol generating over $100 million in revenue each year (SkyEcosystem).

Conclusion

Sky’s roadmap focuses on making governance simpler, growing the ecosystem, and tightening token management. While steps like spinning off Powerhouse and expanding buybacks show progress, the project’s success depends on steady revenue and keeping the community united. The big question remains: how will Sky balance being decentralized with attracting institutional support?


What updates are there in the SKY code base?

Sky’s recent code updates focus on making governance easier, improving staking rewards, and optimizing the token economy.

  1. Executive Vote for Staking Rewards (October 31, 2025) – Proposes switching staking rewards from USDS to SKY tokens and increasing token buybacks.
  2. Core Simplification Proposal (July 24, 2025) – Plans to simplify how the protocol is governed and help the ecosystem grow faster.
  3. Delayed Upgrade Penalty Activation (September 18, 2025) – Introduces penalties for users who delay converting MKR tokens to SKY.

Deep Dive

1. Executive Vote for Staking Rewards (October 31, 2025)

Overview: This proposal changes staking rewards from paying out in USDS stablecoins to paying out in SKY tokens. Users will need to manually move their staking positions to the new system. It also increases daily buybacks of USDS to 300,000 and adds 500 million SKY tokens to the treasury.
Technical details: The update modifies smart contracts that handle reward distribution and buyback settings. Paying rewards in SKY tokens helps align user incentives with the long-term health of the protocol.
What this means: This is positive for SKY because it lowers the amount of USDS being sold on the market, which can reduce selling pressure. Increasing buybacks makes SKY tokens more scarce, and adding tokens to the treasury strengthens resources for future incentives. (Source)

2. Core Simplification Proposal (July 24, 2025)

Overview: The community is discussing a plan to simplify Sky’s core governance system and speed up the adoption of “Stars,” which are smaller projects within the ecosystem.
Technical details: The proposal likely involves breaking the code into smaller, more manageable parts to reduce dependencies and make it easier to update and improve Stars.
What this means: This is somewhat positive for SKY because simpler governance can attract more developers and users. However, there are risks involved in making big changes, especially around keeping the system secure during updates. (Source)

3. Delayed Upgrade Penalty Activation (September 18, 2025)

Overview: A penalty of 1% started for MKR token holders who delay converting their tokens to SKY. This penalty increases by 1% every three months.
Technical details: The penalty works by lowering the conversion rate in the migration smart contracts. For example, after the deadline, 1 MKR converts to 0.78 SKY instead of the original 24,000 SKY.
What this means: This is good for SKY because it encourages users to switch to the new token faster, helping to retire old MKR tokens. This consolidation strengthens governance and reduces the number of tokens that could flood the market. (Source)

Conclusion

Sky’s updates show a clear focus on creating a sustainable token economy through buybacks and SKY-based rewards, while making governance more efficient. The penalty for delayed upgrades and changes to staking are designed to reduce friction from old tokens. Meanwhile, simplifying the core system could help Sky scale better. The key question remains: how will the protocol’s revenue growth affect SKY’s token scarcity as buybacks increase?