Sky (SKY) Protocol Achieves Major Milestones Amid Market Volatility

Strategic Buyback Program Reinforces Deflationary Tokenomics

Sky Protocol executed a $1.9 million buyback on January 20, 2026, removing 31.57 million tokens from circulation. This represents part of a program that has deployed over $102 million since February 2025, making it one of DeFi's largest sustained buyback initiatives. Protocol revenue is currently funding daily SKY buybacks of approximately $250,000 as of January 2026.

USDS Stablecoin Expansion Drives Ecosystem Growth

The USDS supply increased by 86%, from $5.3 billion to $9.86 billion, while annualized operational expenses were reduced by 61.5%, with annualized operational profits rising by 24.4% to $168 million. Sky's USDS stablecoin supply is projected to double to $20.6 billion in 2026.

Coinbase Completes MKR-to-SKY Migration

Coinbase announced automatic token swaps for users holding MKR, converting them to SKY at a fixed 1:24,000 ratio during a three-day window from January 12-14, 2026, with trading, deposits, and withdrawals for MKR suspended during this process.

Price Performance and Market Position

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

Sky Savings Platform Reaches New Milestone

The Sky Savings platform's Total Value Locked (TVL) reached a new all-time high of $4 billion, representing over 60% growth in the last 30 days.

Ecosystem Expansion Plans for 2026

Sky plans to introduce four more Sky Agents in 2026, with Grove expected to launch its token in the first half of 2026. 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 in early 2026.

Sky (SKY) 24-Hour Price Analysis

Current Price and Performance

Sky (SKY) is trading at $0.06449 USD with 24-hour trading volume of $58.7 million. The token has experienced a +9.93% gain over the last 24 hours, with an intraday high of approximately $0.0645.

Market Metrics

• Market Capitalization: $1.47 billion (Rank #50)
• 24-Hour Volume: $37.1 million
• Circulating Supply: 22.99 billion SKY
• 1-Hour Change: +0.36%
• 7-Day Change: +0.55%

Key Drivers of Price Movement

Positive Catalysts:

SKY surged +8% on January 24, 2026 following rumors of a Robinhood listing and $104M in protocol buybacks. Sky Frontier Foundation's January 29 report projected 81% revenue growth to $611.5M and doubled USDS stablecoin supply ($21B) for 2026, which has continued to support investor confidence.

Sky Protocol has removed approximately 1.1 billion SKY from circulation via ongoing buybacks, spending $75M+ USDS since the program began, creating upward price pressure as reducing circulating supply while demand grows.

Technical Context:

The token's recent upward momentum reflects broader confidence in the Sky Protocol ecosystem. Sky is a rebranding and upgrade of the former Maker Protocol, designed to enhance scalability and user control in decentralized finance (DeFi), positioning it as a significant player in the evolving DeFi landscape.

Market Context

SKY's 9.93% 24-hour gain demonstrates strong buying interest, supported by fundamental developments including protocol revenue growth projections and active token buyback programs that reduce supply pressure.

Market Sentiment Analysis: Sky (SKY)

Overall Sentiment Assessment

The community is bullish about Sky (SKY) today. Sky is up 13.81% in the last 24 hours. However, sentiment remains mixed when examining broader technical and macroeconomic indicators, with underlying support from fundamental protocol developments.

Price Performance and Technical Indicators

The live Sky price today is $0.06449 USD with a 24-hour trading volume of $58,707,338.13 USD. The trading volume of Sky (SKY) is $56,209,475.96 in the last 24 hours, representing a 57.80% increase from one day ago and signalling a recent rise in market activity.

Technical analysis presents a neutral-to-bullish outlook. Currently, the RSI value is at 56.12, which indicates that the SKY market is in a neutral position. Per our technical indicators, the current sentiment is Bullish while the Fear & Greed Index is showing 44 (Fear). This divergence suggests technical strength despite broader market caution.

Social Media and Community Sentiment

In the last 24 hours, across all social media platforms, Sky has an average sentiment score of 4.2 out of 5. There were 46.15% of tweets with bullish sentiment compared to 15.38% of tweets with a bearish sentiment about Sky. 53.85% of tweets were neutral about Sky. On Reddit, Sky was mentioned in 85 Reddit posts and there were 407 comments about Sky.

Community discussion centers on fundamental value drivers rather than speculative narratives. 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 and unique positioning.

Trader Positioning and Market Drivers

Recent price momentum has been driven by multiple catalysts. 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. New retail and institutional access points broaden SKY's investor base.

The protocol's deflationary tokenomics are a key sentiment driver. Sky Protocol used a total of 8.5 million USDS to repurchase 130 million SKY in January. Since the repurchase plan was launched in February 2025, the total USDS used for buybacks has exceeded 106 million. The 24h volume dip (-20.45%) amid price gains suggests holders aren't selling, amplifying scarcity effects.

Macroeconomic Context and Headwinds

Broader market conditions present headwinds despite coin-specific strength. The total crypto market cap dropped 4.89% in 24h (as of 2 Feb 2026), with Bitcoin dominance rising to 59.36%. Extreme fear sentiment (CMC Fear & Greed Index) and altcoin underperformance drove capital rotation to safer assets. The 24h price rise occurred despite negative crypto market sentiment (Fear & Greed Index: 28), indicating coin-specific demand.

Fundamental Support

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.

SKY Technical Analysis: Key Support & Resistance Levels

Current Market Overview

Price: $0.06393 USD Market Cap: $1.47 Billion (Rank #50) 24h Volume: $37.08 Million 24h Change: +9.93% 7d Change: +0.55%

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Technical Indicators

Momentum Indicators

RSI (Relative Strength Index) is currently at 56.12, indicating the SKY market is in a neutral position. This neutral reading suggests the asset is neither overbought nor oversold, providing room for movement in either direction.

SKY broke below its 7-day SMA ($0.06389) and 30-day SMA ($0.0625), with the RSI (7-day: 38.44) showing bearish momentum but not yet oversold.

Moving Averages

50-day, 100-day and 200-day moving averages are among the most commonly used indicators in the crypto market to identify important resistance and support levels. If the SKY price moves above any of these averages, it is generally seen as a bullish sign for Sky.

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Key Support Levels

The most important support levels to watch are $0.062357, $0.060412 and $0.058183.

Additional support zones identified:

• Support levels are noted near $0.06062 and $0.05304
• Key watch: Can SKY hold $0.058 support if Bitcoin volatility persists
• Skycoin (SKY) is currently trading within a range of $0.0619 to $0.0787, with these levels serving as key support and resistance levels

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Key Resistance Levels

Key resistance levels are $0.066530, $0.068759 and $0.070704.

Extended resistance targets:

• The first major resistance level for SKY is at $0.0787, and if the price manages to break above this level, the next resistance levels to watch out for are $0.0974 and $0.1119
• Resistance at $0.063–$0.065 remains critical for momentum
• Resistance looms at $0.06545 (Fibonacci 23.6%)

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Chart Patterns

SKY is forming a bullish move as a Falling Wedge pattern targeting $0.071 next after breaking resistance near $0.063.

SKY is forming a rounding bottom pattern on the daily chart, which historically suggests potential for upside continuation.

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Volume Analysis

The trading volume of Sky (SKY) is $56,209,475.96 in the last 24 hours, representing a 57.80% increase from one day ago and signalling a recent rise in market activity.

Total buyback spending has surpassed 106 million USDS, which equals approximately 7.36 percent of SKY's current market cap. With 24-hour trading volume around 36.26 million dollars, a single month's buyback totals roughly 23.44 percent of one day's volume.

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Short-Term Outlook (Hourly/Daily)

Price fell below key moving averages and failed to hold $0.065 support. The breakdown invalidated short-term bullish setups.

However, 19 indicators are currently signaling a bullish prediction for Sky, while 8 indicators are showing a bearish forecast.

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Medium-Term Outlook (Daily/Weekly)

The consensus on SKY is mixed but leans bullish, balancing technical recovery signals against AI-sector volatility. Buybacks and USDS adoption underpin long-term value, while resistance at $0.063–$0.065 remains critical for momentum.

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

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Risk Factors

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

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