The SKY price has surged over 10% in the last 24 hours, driven by increased buybacks totaling 1.395 billion tokens worth $65.64 million, a 78% rise in daily trading volume to $23.55 million, heightened staking at 35.94% of supply, and a breakout above a key descending trendline, signaling potential recovery toward $0.0620.
-
Buybacks boost: SKY’s token repurchase program has accumulated 1.395 billion tokens valued at $65.64 million since early November, supporting price stability and upward momentum.
-
Staking surge enhances network security, with 35.94% of SKY supply staked, equivalent to $385.48 million in value.
-
Volume increase of 78% to $23.55 million reflects growing market interest, per data from DefiLlama, alongside quarterly fees reaching $26.75 million.
Discover why SKY price is rising today amid buybacks and staking growth. Explore key metrics and chart analysis for insights into this crypto recovery. Stay updated on SKY trends now!
Why is SKY price up today?
The SKY price experienced a notable increase of more than 10% over the past 24 hours, fueled by robust ecosystem developments including token buybacks and elevated trading activity. This rally coincides with SKY regaining a $1 billion market capitalization, as the network sees widespread upgrades and penalty accumulations. Key factors such as a 78% jump in daily volume and significant staking participation have contributed to this positive momentum.
How are buybacks and staking influencing SKY price action?
Token buybacks for SKY have been on an upward trajectory since early November, reaching a total of 1.395 billion tokens valued at $65.64 million as of the latest updates from SKY Money. This follows the recent addition of 6.21 million tokens to the program, though the pace has moderated slightly, with a recent drop of 2,250 SKY in ongoing transactions averaging around $10,000 each. These buybacks help reduce circulating supply, providing a supportive floor for the price.
In parallel, staking activity has intensified, bolstering the network’s security and decentralization. Currently, approximately 35.94% of the SKY supply, amounting to $385.48 million, remains staked. This high participation rate not only incentivizes holders but also correlates with reduced selling pressure, contributing to the observed price appreciation. Data from DefiLlama indicates that daily trading volume has climbed by $10 million to $23.55 million, marking a 1.7% increase from the prior day’s $13.44 million figure, underscoring heightened investor engagement.
Source: SKY Money
Moreover, the ecosystem has generated substantial fees, with over 84% of penalties directed toward SKY upgrades, including a recent 10,000 MKR upgrade that accumulated roughly $100,000 in fees over the past month. For the fourth quarter, total fees stand at $26.75 million, a decline from the previous quarter’s $45.3 million but still indicative of active protocol usage. According to CoinMarketCap, this trading volume surge of 78% highlights broader market interest in SKY amid recovering altcoin sentiment.
Source: DefiLlama
Will TVL hinder SKY price appreciation?
On the technical front, SKY’s price has broken above a descending trendline on the 4-hour charts, a pattern that had dominated for the past two weeks, reflecting prior seller control. This breakout, confirmed by a retest, suggests a shift in momentum, with the price approaching the $0.050 zone. However, indicators like the Relative Strength Index (RSI) have rejected oversold levels, while the Bull Bear Power (BBP) has dipped from 0.00625 to 0.00389, pointing to potential buyer fatigue or profit realization after the recent surge.
The formation of a Gravestone Doji candlestick introduces caution, as it often signals bearish reversals or pullbacks in uptrends. Despite the bullish tilt from on-chain metrics, the Total Value Locked (TVL) in the SKY ecosystem has declined over the past 30 days, dropping from $7.7 billion to $6.6 billion according to DappRadar. This reduction could pose challenges to sustained price growth if liquidity continues to wane, potentially capping upside near current levels unless broader market recovery supports it.
Overall, while mixed signals prevail—bullish from buybacks and volume, tempered by TVL trends—the key to further appreciation lies in maintaining support above the broken trendline. If achieved, SKY could target $0.0620, aligning with recent altcoin rebounds and ecosystem upgrades.
Source: TradingView
Source: DappRadar
Frequently Asked Questions
What factors are driving the recent SKY price increase and recovery?
The SKY price recovery stems from a combination of token buybacks exceeding $65 million, a 78% volume spike to $23.55 million, and staking levels at 35.94% of supply. These elements, supported by data from SKY Money and DefiLlama, have helped SKY reclaim a $1 billion market cap amid broader altcoin stabilization.
Can SKY price sustain its uptrend above current support levels?
Yes, if SKY holds above the recently broken descending trendline, it may continue rallying toward $0.0620, as indicated by technical indicators on TradingView. However, declining TVL to $6.6 billion per DappRadar could pressure the uptrend, so monitoring volume and staking remains essential for ongoing momentum.
Key Takeaways
- Buyback momentum: Accumulating 1.395 billion SKY tokens worth $65.64 million provides supply reduction and price support.
- Staking and volume growth: With 35.94% staked and 78% higher daily volume, network activity signals strong holder confidence.
- Technical outlook: Breaking the trendline eyes $0.0620, but TVL dip and Doji pattern warrant caution for sustained gains.
Conclusion
In summary, the SKY price uptick today reflects robust buybacks, staking participation, and volume surges, countering some headwinds from declining TVL. As the ecosystem continues upgrades and fee generation, SKY demonstrates resilience in a volatile market. Investors should watch key support levels closely, positioning for potential further appreciation as altcoin trends evolve.
