- Sky Protocol has spent nearly $75 million on buybacks since February 2025.
- The SKY token rose 12.6% over the past week, approaching previous highs.
- Buybacks have reduced supply and strengthened investor confidence.
The SKY token price jumped 12.6% in the last seven days as Sky Network’s buyback program begins to produce visible results.
This steady rise follows months of token repurchases, with Sky Protocol deploying tens of millions of dollars to shrink supply and shore up market confidence.
Sky Protocol’s buyback strategy
Sky, formerly known as Maker before its rebranding in August 2024, has drawn attention for its aggressive buyback plan.
Since February of this year, the protocol has spent nearly $75 million buying SKY tokens directly from the market.
Recent updates revealed that in August alone Sky spent $5.5 million to acquire 73 million tokens.
This sustained buying activity has helped lift the token’s price gradually.
At the end of February, SKY traded just above $0.06.
Today it changes hands at just over $0.07 and, while the absolute amount may seem modest, it represents a meaningful recovery for a token that faced periods of volatility.
Buybacks are intended to reduce circulating supply, create upward price pressure, and signal financial confidence from the project.
SKY token price recovery gains momentum
Market data shows that SKY gained more than 12% in the past week, outperforming many other decentralized finance tokens.
The token’s performance since the start of the buyback program has been steady, rising more than 8% over six months despite broader market swings.
At the end of July, SKY briefly reached $0.096, coming close to its all-time high of just over $0.10 recorded in December, before unexpectedly falling back to just above $0.06 in August.
For comparison, Uniswap’s UNI rose about 6% over the same period, while Aave’s AAVE gained over 25%.
These comparisons underline that although SKY has not delivered the highest returns, its growth is driven by a deliberate financial mechanism rather than pure speculative sentiment. That distinction highlights Sky’s approach within the altcoin space.
Why buybacks matter
Token buybacks are not new to the crypto industry, but the scale and consistency of Sky’s program have drawn attention.
By removing tokens from circulation, the project reduces potential selling pressure and rewards holders with gradual value appreciation.
Sky’s commitment of $75 million to this strategy suggests a strong treasury position and confidence in its ecosystem.
Other projects have launched similar programs, indicating the model may become more common across the sector.
For Sky, the coming months will be key to determining whether the current momentum can be sustained, especially if market conditions become volatile again.
Investor sentiment already appears to be shifting in response to these efforts. A token that fell to a low of $0.035 earlier this year has nearly doubled since then, reflecting renewed belief in its long-term role.
With a market capitalization of roughly $1.64 billion and over $6.2 billion in total value locked on the platform, Sky positions itself as one of the more resilient players in DeFi.