Sky (SKY) Protocol Advances Ecosystem Growth Amid Strategic Buybacks

Sky (SKY) is trading at $0.064493 USD with a 24-hour trading volume of $58.7 million, up 13.81% in the last 24 hours. The token ranks #45 on CoinMarketCap with a live market cap of $1.48 billion USD.

Major Protocol Developments

The Sky Frontier Foundation released its Annual State of Sky Ecosystem report for 2025, revealing an 86% increase in USDS supply to $9.86 billion, a 61.5% reduction in annualized operational expenses, and a 24.4% increase in annualized operational profits to $168 million.

Sky Protocol executed a major treasury buyback on January 20, 2026, spending $1.9 million in USDS to repurchase 31.57 million SKY tokens. This is part of a program that has deployed over $102 million since February 2025, making it one of DeFi's largest and most transparent sustained buyback initiatives.

MKR-to-SKY Migration Milestone

Coinbase announced it will support the final migration for its users, automatically swapping MKR tokens to SKY at the fixed 1:24,000 ratio during a three-day window from January 12-14, 2026. Trading, deposits, and withdrawals for MKR were suspended during this process.

Ecosystem Expansion Plans

Sky plans to introduce four more Sky Agents in 2026 and Grove is expected to launch its token in the first half of 2026. Sky Savings TVL reached a new all-time high of $4 billion, representing over 60% growth in the last 30 days.

The Obex Incubator, supported by a $37 million raise and a $2.5 billion Sky allocation, aims to incubate institutional-grade yield projects, with initial projects expected to launch and generate yield revenue for the Sky ecosystem in early 2026.

Market Performance

With a price increase of 4.50% in the last 7 days, Sky is outperforming the global cryptocurrency market which is down 10.50%, while underperforming similar Ethereum Ecosystem cryptocurrencies which are up 12.70%.

Based on the data retrieved, I need to clarify an important distinction: there are two different tokens with the SKY symbol. The search results show conflicting information about which "Sky" token you're asking about. Let me provide analysis for the Sky Protocol governance token (the one ranked #50 with a market cap of ~$1.49B), which is the more prominent token:

Sky (SKY) - 24-Hour Price Analysis

Current Price & Performance

The live Sky price today is $0.06449 USD with a 24-hour trading volume of $58,707,338.13 USD. According to the data retrieved, SKY has experienced a +1.74% gain over the last 24 hours, with the price currently trading at approximately $0.065.

Market Metrics

• Market Cap: $1.49 billion (Rank #50)
• 24-Hour Volume: $28-58 million (varying across exchanges)
• 7-Day Change: +6.32%
• Circulating Supply: ~23 billion SKY tokens

Key Drivers of Price Movement

Positive Factors:

Sky Protocol has removed ~1.1B SKY from circulation via ongoing buybacks, spending $75M+ USDS since the program began. Reducing circulating supply while demand grows creates upward price pressure.

Sky Frontier Foundation's Jan 29 report projected 81% revenue growth to $611.5M and doubled USDS stablecoin supply ($21B) for 2026, citing "streamlined cost structure and diversified yield pipeline" as institutional draws. These metrics signal scalability and real-world asset integration, boosting investor confidence in SKY's utility.

Technical Context:

Per technical indicators, the current sentiment is Bullish while the Fear & Greed Index is showing 44 (Fear). Currently, the RSI value is at 56.12, which indicates that the SKY market is in a neutral position.

Market Context

The modest 24-hour gain reflects a broader consolidation pattern for SKY, with the token showing stronger weekly performance (+6.32%) despite broader market volatility. The token's upward trajectory aligns with protocol developments and token buyback initiatives designed to support price stability through supply reduction.

Market Sentiment Analysis: Sky (SKY)

Overall Sentiment Assessment

Technical indicators show bullish sentiment while the Fear & Greed Index is showing 44 (Fear), indicating a mixed market environment. The community is bullish about Sky (SKY) today, though broader market conditions present headwinds.

Price Performance & Technical Indicators

Sky is up 13.81% in the last 24 hours, demonstrating recent positive momentum. However, SKY broke below its 7-day SMA ($0.06389) and 30-day SMA ($0.0625), triggering automated sell orders, with RSI (7-day: 38.44) showing bearish momentum but not yet oversold.

The token currently trades at approximately $0.0650 USD with a market cap of $1.48 billion, ranking #50 by market capitalization.

Social Media & Community Sentiment

There were 42.86% of tweets with bullish sentiment compared to 14.29% of tweets with a bearish sentiment about Sky, with 57.14% of tweets being neutral. In the last 24 hours, across all social media platforms, Sky has an average sentiment score of 4.0 out of 5.

On Reddit, Sky was mentioned in 83 Reddit posts and there were 719 comments about Sky, with less upvotes compared to downvotes on Reddit posts and more upvotes compared to downvotes on Reddit comments.

Fundamental Drivers Supporting Sentiment

Sky's USDS stablecoin supply is projected to double to $20.6B in 2026, with protocol revenue funding daily SKY buybacks ($250K/day as of Jan 2026). Buybacks have removed 1.12B SKY (~$75M) from circulation since 2025.

SKY surged +8% on 24 Jan 2026 after rumors of a Robinhood listing and $104M in protocol buybacks. Rumors of a Robinhood listing circulated Jan 22–24, while Kraken's Jan 26 DeFi Earn integration exposed SKY to its institutional user base, broadening SKY's investor base.

Market Headwinds & Challenges

The total crypto market cap dropped 4.89% in 24h (as of 2 Feb 2026), with Bitcoin dominance rising to 59.36%, with extreme fear sentiment and altcoin underperformance driving capital rotation to safer assets. SKY's decline aligns with sector-wide weakness, with Real-World Asset (RWA) tokens like SKY seeing reduced demand as investors prioritized liquidity over niche narratives.

The trading volume of Sky (SKY) is $34,407,158.81 in the last 24 hours, representing a -34.90% decrease from one day ago and signalling a recent fall in market activity.

Technical Analysis Outlook

Sky recorded 16/30 (53%) green days with 4.74% price volatility over the last 30 days. Key support now sits at the 38.2% Fibonacci retracement level ($0.06344), with a close below $0.058 potentially signaling further downside.

Sentiment Shift Drivers

RWA Sector Leads Market Recovery (20 January 2026) – SKY rose 1.90% as capital rotated toward yield-driven narratives like real-world assets. Community sentiment highlights aggressive buybacks and a low P/F ratio as key value indicators, reflecting building positive sentiment within the crypto community focusing on Sky's fundamental metrics.

SKY Technical Analysis: Key Support & Resistance Levels

Current Market Overview

Price: $0.0650 USD Market Cap: $1.49 billion 24h Volume: $28 million 24h Change: +0.06% | 7d Change:** +6.32%

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Key Support Levels

Primary support levels are located at $0.06352, $0.06302, with the strongest support at $0.06247. Additional critical support zones include:

• $0.062357, $0.060412, and $0.058183
• $0.060–$0.062 represents the next key support if price fails to hold above $0.070
• $0.058 support is critical to monitor if Bitcoin volatility persists

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Key Resistance Levels

Resistance levels are positioned at $0.06456, $0.06512, and $0.06561. Extended resistance zones include:

• $0.066530, $0.068759, and $0.070704
• The first major resistance level is at $0.0787, with next resistance levels at $0.0974 and $0.1119
• $0.085 region previously acted as resistance in July, with stronger rally potential toward $0.095–$0.100

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Technical Indicators

RSI (Relative Strength Index)

The RSI value is at 56.12, indicating the SKY market is in a neutral position. The 7-day RSI shows 38.44, indicating bearish momentum but not yet oversold. The 14-day RSI is at 53.48 suggesting natural conditions, while the weekly RSI is at 44.42, also indicating natural conditions.

Moving Averages

SKY broke below its 7-day SMA ($0.06389) and 30-day SMA ($0.0625), triggering automated sell orders. On the daily chart, exponential moving averages show a bullish signal with price currently above all 10, 20, 50, 100, and 200-day EMAs.

MACD

The MACD remains in negative territory, maintaining a weak bearish bias, while histogram bars flatten out indicating momentum has stalled.

Bollinger Bands

SKY appears closer to the lower Bollinger band at $0.05451, confirming ongoing distribution.

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Chart Patterns & Structure

Price fell below key moving averages and failed to hold $0.065 support. SKY is currently trading in a low-volume range between $0.055 and $0.062, with a neutral bias and volatility compression, but momentum remains bearish.

SKY/USDT has successfully broken out of a long-term symmetrical triangle pattern, with the breakout backed by increasing volume and rising RSI, pointing to growing momentum.

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Volume Analysis

Profit-taking pressure follows a +8% rally earlier in January linked to buybacks and Robinhood listing rumors. The PVT (Price Volume Trend) at 2.95M shows minimal accumulation and no substantial increase in buying volume, suggesting price will continue to drift sideways within a narrow band.

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Short-Term Outlook (Hourly/Daily)

19 indicators are currently signaling a bullish prediction for Sky, while 8 indicators are showing a bearish forecast. Key support sits near $0.068–$0.070, while resistance remains at $0.080–$0.082. If buyers manage to push and sustain above $0.0595, a small bounce toward $0.061–$0.062 could occur.

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Medium-Term Outlook (Weekly)

According to 1 week rating the neutral trend is prevailing, and 1 month rating shows the sell signal. Real-world asset (RWA) tokens like SKY saw reduced demand as investors prioritized liquidity over niche narratives. Sky Frontier Foundation's Jan 29 report projected 81% revenue growth to $611.5M and doubled USDS stablecoin supply ($21B) for 2026, signaling scalability and real-world asset integration.

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