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) surged 11.97% in the past 24 hours, outperforming the overall crypto market, which saw a 1.11% decline in market cap. The main reasons behind this jump include:

  1. TVL Milestone – Sky Savings reached $4 billion in Total Value Locked (TVL), growing 60% in just one month (The Defiant).
  2. Buybacks & Staking – The protocol increased daily buybacks and set aside 500 million SKY tokens for staking rewards (Sky Governance).
  3. Technical Breakout – SKY’s price broke through important resistance levels, indicating positive momentum.

Deep Dive

1. TVL Surge & Yield Demand (Positive Sign)

Overview: On November 12, Sky Savings hit $4 billion in TVL, mainly fueled by deposits of USDS stablecoins offering a 4.5% annual percentage yield (APY). This is a 150% increase since January 2025, making Sky one of the top 10 decentralized finance (DeFi) platforms by TVL.

Why it matters: A rising TVL shows growing trust from both institutions and everyday investors in Sky’s low-risk yield products. USDS now makes up 91% of all deposits, highlighting strong demand for better returns compared to other stablecoins. The protocol’s revenue has increased to about $230 million annually, helping fund SKY token buybacks.

What to watch: Whether USDS can keep attracting deposits compared to competitors like USDC.

2. Tokenomics Shift: Buybacks & Staking (Positive Sign)

Overview: A vote on November 12 approved increasing daily SKY token buybacks to 300,000 USDS and allocating 500 million SKY tokens for staking rewards.

Why it matters: Buybacks reduce the number of SKY tokens available on the market (1.1 billion SKY tokens have been burned this year), while staking rewards encourage holders to lock up their tokens. Together, these actions reduce supply and reward long-term investors, which can push the price higher.

What to watch: On-chain data showing how many tokens are staked and whether USDS revenue remains strong enough to support buybacks.

3. Technical Momentum (Mixed Signals)

Overview: SKY’s price moved above its 7-day simple moving average (SMA) of $0.0542 and the 38.2% Fibonacci retracement level at $0.05935. The Relative Strength Index (RSI) is at 58.91, suggesting there’s still room for upward movement before the asset becomes overbought.

Why it matters: Breaking above the $0.0575 resistance level attracted traders looking for momentum. However, the Moving Average Convergence Divergence (MACD) indicator is still negative, and the 200-day SMA at $0.0719 remains a significant resistance point.

Key level to watch: Closing above $0.0617 (23.6% Fibonacci retracement) could open the way to $0.0698.

Conclusion

Sky’s recent price increase is supported by strong fundamentals like TVL growth and improved tokenomics, along with positive technical signals. However, the broader crypto market remains cautious.

Key question: Can USDS maintain its yield advantage as DeFi adjusts after recent stablecoin issues? Keep an eye on Sky’s governance vote on November 15 regarding the integration of Hyperliquid’s USDH stablecoin, which could be the next major catalyst.


What could affect the price of SKY?

Sky’s price is balancing between upcoming protocol improvements and the uncertain shifts in decentralized finance (DeFi).

  1. Buybacks & Staking Rewards – Increased SKY buybacks and new reward programs aim to lower the available supply.
  2. Governance Upgrades – Penalties for late MKR to SKY conversions could affect token behavior.
  3. DeFi Liquidity Changes – Growth in USDS stablecoin use versus risks in the broader stablecoin market create opposing pressures.

Deep Dive

1. Protocol Buybacks & Staking (Positive for Price)

Overview:
The Sky Protocol has bought back 1.11 billion SKY tokens, which is about 3.28% of all SKY in circulation, using daily buybacks funded by 300,000 USDS since October 2025. Staking rewards now include SKY and USDS yields, with $2.4 billion locked in savings and $1.4 billion paid out in token rewards.

What this means:
By buying back tokens, the protocol reduces how many SKY tokens are available, which can help increase the price. A large number of tokens are staked (947 million SKY as of July 2025), which may help keep prices stable if people continue to seek rewards. However, the system’s health depends on ongoing revenue from USDS adoption, which currently brings in about $230 million annually.

2. MKR Conversion Penalties & Governance (Mixed Effects)

Overview:
There is now a 1% penalty for MKR holders who delay converting their tokens to SKY after September 22, 2025. This penalty increases every quarter. So far, only 56% of MKR tokens have been converted, leaving around 176,000 MKR (worth about $316 million) still unconverted.

What this means:
These penalties encourage users to convert their MKR tokens sooner, which could increase demand for SKY in the short term. However, if many holders rush to convert or sell at once to avoid penalties, it could create selling pressure. Additionally, governance power is somewhat concentrated, with Rune Christensen holding 9% of voting rights, which raises concerns about decision-making fairness (Blockworks).

3. DeFi Liquidity & Stablecoin Risks (Negative for Price)

Overview:
The supply of USDS stablecoin has grown 29% year-over-year to $7.5 billion. However, confidence in stablecoins has been shaken by incidents like xUSD losing $93 million in November 2025. Sky’s total value locked (TVL) reached $15.4 billion, but S&P rates it “B-” due to regulatory and liquidity concerns.

What this means:
USDS is gaining ground as a more reliable stablecoin, capturing an 8% market share increase during the November downturn, which supports SKY’s use case. Still, the broader DeFi market has seen $42 billion in outflows since October 2025, and ongoing regulatory uncertainty could limit growth potential.

Conclusion

SKY’s future depends on balancing the scarcity created by buybacks with the risks facing the DeFi sector. Key factors to watch include the MKR conversion deadlines and how widely staking is adopted. Meanwhile, overall market sentiment (Fear & Greed Index at 26) and regulatory clarity will play major roles. Can Sky’s tokenomics overcome the trust challenges in DeFi? Keep an eye on USDS adoption and how consistently buybacks are executed each week.


What are people saying about SKY?

The Sky (SKY) community is buzzing with excitement over token buybacks and staking rewards, while traders keep an eye on important price levels. Here’s what’s happening:

  1. Buybacks exceed 1 billion SKY – the protocol uses USDS to reduce token supply
  2. Stakers earn over $10 million in USDS rewards – a 12.75% annual yield attracts investors
  3. New exchange listings cause price swings – Phemex adds SKY, Coinbase hints at listing

In-Depth Look

1. @SkyEcosystem: Buybacks reach 3.28% of total supply — a positive sign

“1.11B SKY bought back (3.28% of supply) via 1.39M USDS weekly burns”
– @SkyEcosystem (294K followers · 9.7K+ posts · 2025-08-04)
View original post
What this means: This is good news for SKY holders. When the protocol buys back tokens, it lowers the number of coins available in the market, which can help support the price. It also shows the protocol is generating strong revenue—Sky’s Spark platform brings in $226 million annually.

2. @SkyEcosystem: Staking activity tops $1.4 billion — another positive indicator

“Over 947M SKY ($77M) staked, $10M USDS rewards in 45 days”
– @SkyEcosystem (294K followers · 9.7K+ posts · 2025-07-03)
View original post
What this means: Many investors are locking up their SKY tokens to earn a 12.75% annual return, showing confidence in the project’s future. However, these rewards depend on the protocol continuing to generate enough revenue.

3. @PhemexR: SKY’s new listing on Phemex sparks mixed reactions

“Новый Листинг на Спот ⚡️ #SKY ⚡️” (New SKY spot listing)
– @PhemexR (4.9K followers · 6.7K+ posts · 2025-09-18)
View original post
What this means: New exchange listings usually help by making it easier to buy and sell SKY, which can boost trading activity. But SKY’s price dropped 23% over 90 days after the listing (from $0.08 to $0.0589), showing weak momentum after the initial excitement.

Conclusion

Overall, the outlook for SKY is cautiously optimistic. Buybacks and staking rewards provide strong support, but the price has struggled in the medium term. Keep an eye on the weekly USDS burn rate—if it stays above 1 million USDS, it could mean investors are accumulating SKY ahead of the next governance vote. The key question remains: is the 12.75% staking yield enough to hold through broader market challenges?


What is the latest news about SKY?

Sky is capitalizing on the growing interest in decentralized finance (DeFi), hitting new highs in total value locked (TVL) and gaining traction on exchanges. However, challenges in the broader crypto market remain.

  1. Savings TVL Reaches $4 Billion (November 12, 2025) – A 60% increase in monthly deposits helped SKY’s price jump 14%.
  2. New Exchange Listings Improve Liquidity (November 12, 2025) – More trading platforms tightened price spreads and supported a 12% daily price gain.
  3. Stablecoin USDS Dominates Deposits (November 12, 2025) – USDS now makes up 91% of Sky Savings deposits.

In-Depth Look

1. Savings TVL Reaches $4 Billion (November 12, 2025)

What happened:
Sky Savings’ total value locked (TVL) climbed to $4 billion, a 63% increase in just 30 days and 150% since the start of the year. This growth is mainly driven by a 4.5% yield offered on USDS stablecoins. Even though many altcoins weakened due to Bitcoin’s influence, SKY’s price rose 14% during the day, despite being down 9% over the past month.

Why it matters:
This shows strong demand for Sky’s yield products, making it stand out in the DeFi space. However, the monthly price drop suggests some investors remain cautious about the long-term strength of altcoins. (The Defiant)

2. New Exchange Listings Improve Liquidity (November 12, 2025)

What happened:
SKY’s price increased by 12% as it became available on more exchanges like Coinbase and Binance. This wider availability helped improve liquidity, meaning it’s easier to buy and sell without big price changes. Analysts see this as a technical recovery after recent altcoin sell-offs in November.

Why it matters:
Better liquidity reduces trading costs and helps stabilize prices. However, since this price boost comes mainly from easier trading rather than improvements to the Sky platform itself, the momentum might not last long. (CryptoNews)

3. Stablecoin USDS Dominates Deposits (November 12, 2025)

What happened:
USDS stablecoins now make up 91% of the $4 billion in Sky Savings deposits. This is because USDS offers a higher yield (4.5%) compared to alternatives like DAI (1.25%). Since October, USDS supply has grown by 8.2%, while competitors like Ethena’s USDe have seen outflows.

Why it matters:
Sky’s focus on USDS is attracting more capital, but relying heavily on one stablecoin carries risks. A recent stablecoin crisis in early November exposed weaknesses in some yield-generating models across DeFi.

Conclusion

Sky’s strong TVL growth and increased exchange presence show it’s making smart moves in a tough altcoin market. Still, its heavy dependence on USDS and recent price drops highlight ongoing vulnerabilities. The big question is whether Sky can keep leading in DeFi if Bitcoin’s dominance continues to rise.


What is expected in the development of SKY?

Sky’s development is focused on strengthening its ecosystem by encouraging timely upgrades, simplifying governance, and making parts of the platform more independent.

  1. Increasing Penalties for Delayed Upgrades (Starting December 2025) – A penalty on converting MKR to SKY will rise by 1% every three months.
  2. Simplifying Core Governance (Date TBD) – Plans to make governance easier and speed up growth of “Stars” (smaller ecosystem projects).
  3. Powerhouse Spin-Off Progress (Q4 2024) – Legal and financial groundwork is 39% complete for Powerhouse to become an independent entity.

In-Depth Look

1. Increasing Penalties for Delayed Upgrades (December 2025)

What’s happening:
Starting September 18, 2025, a 1% penalty was applied when converting MKR tokens to SKY. This penalty will increase by 1% every three months (Sky Governance). This encourages holders who haven’t upgraded their MKR tokens (about 19% as of September 2025) to switch to SKY sooner rather than later.

Why it matters:

2. Simplifying Core Governance (Date TBD)

What’s happening:
The community is proposing to cut down on complex governance processes in Sky’s Core system. This would free up resources to grow “Stars,” which are smaller projects within the ecosystem like Spark and Grove (Sky Ecosystem).

Why it matters:

3. Powerhouse Spin-Off Progress (Q4 2024)

What’s happening:
Powerhouse, the decentralized operations platform within Sky, is moving toward becoming its own independent organization. So far, 50% of the legal setup and 15% of the tokenomics design are complete (Roadmap).

Why it matters:

Conclusion

Sky’s roadmap shows a balance between encouraging legacy token holders to upgrade and making the ecosystem more agile through governance changes. The rising penalty on MKR conversions and Powerhouse’s independence highlight a move toward stronger SKY governance. Meanwhile, simplifying Core governance could speed up innovation but might also reduce control over risky products. The big question remains: Will increased SKY buybacks (300,000 USDS daily) and staking rewards keep the momentum going despite low liquidity in alternative coins?


What updates are there in the SKY code base?

Sky’s recent updates focus on making governance simpler, improving staking rewards, and refining token economics.

  1. Staking Rewards Update (October 31, 2025) – Switched from USDS rewards to SKY rewards, requiring users to manually move their staking positions.
  2. Governance Simplification Proposal (October 30, 2025) – A plan to streamline decision-making to help the ecosystem grow faster.
  3. Late Upgrade Fee (September 18, 2025) – A 1% fee for converting MKR to SKY after this date, increasing every three months.

Deep Dive

1. Staking Rewards Update (October 31, 2025)

What happened:
Sky stopped giving out USDS as staking rewards and started paying in SKY tokens instead. Users need to manually transfer their staking positions to the new system. The daily buyback of USDS increased to 300,000, and 500 million SKY tokens were set aside to fund these rewards.

Why it matters:
This change is generally positive for SKY holders because it lowers the selling pressure caused by USDS rewards and encourages people to hold SKY longer. However, the need for manual migration might cause some short-term inconvenience. (Source)

2. Governance Simplification Proposal (October 30, 2025)

What happened:
The Sky community is discussing a proposal to simplify how governance works. The goal is to cut down on red tape and speed up the growth of “Stars,” which are smaller projects within the Sky ecosystem.

Why it matters:
If approved, this could be very good for Sky because faster decision-making can attract more developers and help the ecosystem grow. On the downside, there’s a risk that too much power could end up in the hands of a few, which might reduce transparency. (Source)

3. Late Upgrade Fee (September 18, 2025)

What happened:
A 1% penalty fee now applies to anyone converting MKR tokens to SKY after September 18, 2025. This fee will increase by 1% every three months.

Why it matters:
This encourages MKR holders to upgrade sooner, helping to unify governance under SKY. While this is neutral overall, some long-time users might feel pushed away by the penalties. (Source)

Conclusion

Sky’s updates aim to make governance more efficient and align incentives for token holders. Switching staking rewards to SKY and adding penalties for late upgrades show a clear focus on long-term sustainability. The big question is whether simpler governance will attract enough developers to make up for the hassle of migration.