Against the backdrop of constant fluctuations in the global cryptocurrency market, Sky Protocol (SKY), a decentralized financial ecosystem evolved from MakerDAO, has shown particularly noteworthy performance recently. As of September 18, the governance token SKY is priced at $0.076, with a 24-hour increase of up to 2.5%, and trading volume exceeding $2.6 million. SKY currently has a circulating market value of $1.8 billion, ranking 77th in the overall market. This article will delve into the market performance, technical features, and future prospects of SKY.
What is Sky Protocol?
Sky Protocol is a decentralized finance (DeFi) ecosystem that has evolved from the renowned MakerDAO project, prioritizing user-controlled savings, scalable stablecoin solutions, and modular governance.
SKY is the governance token of the Sky ecosystem and can be considered an upgraded version of the MKR token. The protocol was officially launched on September 18, 2024, marking a new phase in MakerDAO’s Endgame transformation plan.
The core reason for the rise in SKY price
1. Large-scale Token Buyback Plan
Sky Protocol has recently implemented an aggressive token buyback strategy. Data shows that the protocol repurchased 9.4 million SKY tokens last week (approximately $700,000 USDS), with a total buyback amount exceeding 1.19 billion tokens.
The buyback plan has reduced the circulating supply of SKY in the market, providing strong support for the price in the face of increased demand.
2. The launch of major exchanges drives demand
Several mainstream exchanges have recently announced support for the conversion of MKR to SKY and the launch of the SKY trading pair, including platforms such as Gate, Binance, and Hyperliquid.
3. The urgent deadline for converting MKR to SKY
Sky Protocol has set September 18th (today) as the critical deadline for the conversion of MKR to SKY. After this date, delayed upgrades will incur a punitive fee of 1% every three months, a measure that encourages a large number of holders to convert their tokens in a timely manner.
As of the latest data, 78.13% of MKR tokens have been upgraded to SKY, with an increase of 7.67% in just the past 24 hours.
4. Record-breaking protocol revenue
Sky Protocol achieved record financial performance in Q3 2025. On-chain analytics platform Token Terminal reported that the protocol’s quarterly revenue has surpassed the 100 million dollar mark.
This income growth is mainly driven by top performers such as SparkFi and GroveFinance, indicating a healthy development of the ecosystem.
SKY Technical Analysis
From a technical analysis perspective, SKY currently shows a positive trend:
- SKY bounced from the 200-day Exponential Moving Average (EMA) and rose for two consecutive days.
- The Relative Strength Index (RSI) is at 59, rising from the midpoint, indicating increasing buying pressure.
- The Moving Average Convergence Divergence (MACD) and its signal line have entered the positive value area above zero, indicating a recovery in bullish momentum.
- The key resistance level is at $0.08213, and the support level is near $0.07191.
Sky Protocol Future Price Prediction
Based on comprehensive technical indicators, protocol fundamentals, and market sentiment, the future price of the SKY token may show the following trends:
1. Short-term forecast (Q4 2025)
- Target range: 0.082 - 0.100 USD
Key Drivers:
- Technical breakthrough: SKY is currently challenging the R1 pivot point resistance level of $0.08213. If the daily closing price stabilizes above this level, the next target may be the R2 pivot point at $0.10002.
- Token Buyback Program: The protocol repurchased 9.4 million SKY (approximately 700,000 USDS) last week, with a total buyback amount exceeding 1.19 billion, continuously reducing the circulating supply and supporting the price.
- Upgrade deadline: The conversion from MKR to SKY ended on September 18, and delayed upgrades will incur a punitive fee of 1% every three months. The demand for conversions in the final phase may continue to drive short-term buying.
2. Mid-term forecast (2026 - 2027)
- Target range: $1.70 - $3.93 in 2026 | $3.00 - $3.75 in 2027
Key driving factors:
- Protocol Revenue Growth: Sky Protocol’s revenue in the third quarter of 2025 has surpassed the milestone of 100 million dollars, setting a new historical high. If the current growth rate is maintained, revenue is expected to reach 470 million dollars in the next 12 months, and the improvement in fundamentals will support the increase in token valuation.
- Ecosystem Expansion: The strong performance of sub-protocols such as SparkFi and GroveFinance drives overall revenue and user growth.
- Market Sentiment: The current market sentiment towards SKY is generally positive, with a market cap share of 0.043%.
3. Long-term forecast (2028 - 2030)
- Target range: $2.47 - $4.86 in 2030 (potential return rate +79.00%)
Key Drivers:
- DeFi industry matures: With the explosion of decentralized stablecoins (such as USDS) and the RWA (real-world assets) market, Sky Protocol, as an evolved version of MakerDAO, may capture a larger market share.
- Governance and Utility Enhancement: The upgrade of SKY’s governance functions and its application scenarios within the ecosystem may enhance its value storage and staking yield attributes.
Conservative and Optimistic Scenarios:
- Conservative scenario: Assuming the industry develops steadily, the SKY price could reach $0.171.
- Extreme bull market scenario: If the Ethereum ecosystem erupts, a rate cut cycle begins, and the RWA market grows rapidly, SKY could rise to $1.080.
Risk Warning for Investing in Sky Protocol
Although the outlook for SKY is promising, investors should still be aware of the following risks:
- Conversion Risk: The conversion from MKR to SKY may cause temporary market imbalances and increase volatility.
- Market risk: The overall trend of the cryptocurrency market may affect the performance of SKY.
- Liquidity Risk: Simultaneous processing of MKR to SKY conversions at multiple exchanges may trigger severe price fluctuations.
- Regulatory Risk: The DeFi sector faces a constantly changing regulatory environment
Investors should only invest funds that they can afford to lose and consider a diversified investment strategy.
How to buy and trade SKY tokens
Investors who want to buy and trade SKY tokens can do so by following these steps:
- Register an account on Gate exchange or other platforms that support SKY.
- Complete the KYC (Know Your Customer) process
- Deposit fiat or other cryptocurrencies into the account
- Search for SKY in the trading area and place an order to buy.
- You can choose to transfer SKY to your personal wallet for enhanced security.
Conclusion
Sky Protocol (SKY), as an evolved version of MakerDAO, demonstrates strong growth potential in the DeFi space. With record high protocol revenues, significant token buybacks, and active support from major exchanges, SKY shows strong momentum in the short term.
Today (September 18) is not only the key deadline for the MKR to SKY conversion, but also the day for the Sky community to hold a conference call, which could bring new momentum for the project.
In the long term, Sky Protocol is expected to become one of the leaders in the decentralized finance space, but investors should always exercise caution and fully understand the high-risk nature of cryptocurrency investments.
