- Sky Protocol has spent nearly $75 million on buybacks since February 2025.
- The SKY token has risen 12.6% over the past week and is approaching previous highs.
- Buybacks reduced supply and boosted investor confidence.
The price of the SKY token has climbed 12.6% over the past seven days as Sky Network’s buyback program begins to show results.
This steady increase follows months of token repurchases, with Sky Protocol deploying tens of millions of dollars to reduce circulating supply and stabilize market sentiment.
Sky Protocol’s buyback strategy
Sky—formerly known as Maker before its rebrand in August 2024—has drawn attention with an aggressive buyback program.
Since February this year, the protocol has spent nearly $75 million buying SKY tokens directly from the market.
A recent update revealed that Sky spent $5.5 million in August alone to acquire 73 million tokens.
That consistent activity has contributed to a gradual lift in the token’s price.
At the end of February, SKY was trading just above $0.06.
Today it changes hands at slightly over $0.07. While the absolute value may seem modest, this represents meaningful recovery for a token that has experienced periods of volatility.
Buybacks are intended to shrink the circulating supply, creating upward pressure on price while signaling financial confidence from the project team.
SKY token price momentum accelerates
Market data shows SKY has gained more than 12% in the past week, outperforming several other decentralized finance tokens.
Since the buyback campaign began, the token has shown steady performance, rising more than 8% over six months despite broader market fluctuations.
In late July, SKY even reached $0.096, approaching its all-time high of just over $0.10 recorded in December, before falling unexpectedly to just above $0.06 in August.
For context, Uniswap’s UNI rose roughly 6% in the same period while Aave’s AAVE climbed over 25%.
These comparisons emphasize that, although SKY hasn’t delivered the largest returns, its gains are linked to a deliberate financial mechanism rather than purely speculative sentiment. That distinction helps Sky stand out in the altcoin landscape.
Why the buybacks matter
Token buybacks are not new to crypto, but Sky’s scale and consistency have drawn notice.
By removing tokens from circulation, the project reduces potential sell pressure and rewards holders through gradual value appreciation.
Sky’s commitment of $75 million to this strategy indicates a solid financial position and confidence in its ecosystem.
Other projects have launched similar programs, suggesting the model may become more widespread across the industry.
The coming months will be critical for Sky to determine whether the current momentum can be sustained, especially if market conditions turn volatile again.
Investor sentiment already appears to be shifting—the token that fell to a low of $0.035 earlier this year has nearly doubled since then, reflecting renewed belief in its long-term prospects.
With a market capitalization near $1.64 billion and more than $6.2 billion in total value locked on the platform, Sky positions itself as one of the more prominent players in DeFi.