Why is SKY going up? SKY price breakdown
SKY (formerly Maker MKR) is up about 5% over the past 24 hours, trading in the $0.07–$0.08 range, with a market cap of around $1.7 billion.
Overall, the market is little changed today. The total crypto market cap stands at $4 trillion, with Bitcoin trading at around $117,000 and Ether at around $4,520. So, why is SKY going up?
Key points
- SKY gets added on Binance, Hyperliquid, and other platforms
- Protocol buybacks reduce the circulating supply
- Risk factors can affect the SKY token’s performance
24-hour SKY price performance. Source: TradingView
MKR to SKY swap and exchange moves in focus
SKY experiences increased volatility as multiple trading platforms, including Binance, Crypto.com, and Hyperliquid, announced MKR-to-SKY conversions this week. MakerDAO rebranded as SKY in November 2024, with DAI and MKR tokens optionally upgraded to USDS and SKY while remaining active. Sky co-founder Rune Christensen told GNcrypto at the time that the rebranding was part of the project’s evolution. Binance delisted MKR and relisted it as SKY today, with increased trading volumes impacting the price.
Protocol buybacks tightened supply
Sky Protocol revealed that it bought back 9.4 million SKY tokens (about $700,000 USDS) last week, bringing the total buybacks to over 1.19 billion tokens. Buybacks can reduce the number of tokens available in the market and help support the price when demand rises. This can strengthen the token’s value, especially when supply becomes limited. SKY’s current circulating supply is 23.42 billion, accounting for 99.84% of the maximum 23.46 billion tokens.
SKY faces several risk factors
Converting MKR tokens to SKY can create temporary market imbalances, as holders may sell newly converted tokens or delay swaps, which increases volatility. If multiple exchanges handle the MKR-to-SKY transition at the same time, it can also trigger sharp price swings and affect liquidity. Investors may respond differently: some may hold SKY for long-term growth, while others could sell quickly to take profits or avoid uncertainty, amplifying short-term price movements. Broader crypto market trends can add to these risks.
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Web3 writer and crypto HODLer with a keen interest in market trends and recent technologies.
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