- Since February 2025, Sky Protocol has spent nearly $75 million on buybacks.
- The SKY token rose 12.6% over the past week, approaching earlier highs.
- Buybacks have reduced supply and helped strengthen investor confidence.
The price of the SKY token has increased by 12.6% over the last seven days as Sky Network’s buyback program begins to show results.
This steady uptick follows months of token repurchases during which Sky Protocol deployed tens of millions of dollars to shrink circulating supply and stabilize market confidence.
Sky Protocol’s buyback strategy
Formerly known as Maker before a rebrand in August 2024, Sky has drawn attention with an aggressive buyback plan.
Since February of 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 been a key factor in gradually lifting the token’s price.
At the end of February, SKY traded just above $0.06.
Today it changes hands at slightly over $0.07. While the figures may seem modest, they represent a notable recovery for a token that has experienced periods of volatility.
The buybacks are intended to reduce circulating supply, create upward pressure on price, and signal financial commitment and confidence from the project.
SKY token’s price recovery gains momentum
Market data show SKY gained more than 12% in the past week, outperforming several other decentralized finance tokens.
Since the start of the buyback program, the token’s performance has been steady: despite broader market swings, it is up over 8% across six months.
In late July, SKY reached $0.096, approaching its December all-time high of just over $0.10, before a surprising drop back to just above $0.06 in August.
For comparison, Uniswap’s UNI rose roughly 6% over the same period, while Aave’s AAVE climbed more than 25%.
These comparisons indicate that while SKY hasn’t delivered the highest returns, its appreciation is directly linked to a deliberate financial mechanism rather than pure market speculation. That distinction highlights Sky’s methodical approach within the altcoin space.
Why the buybacks matter
Token buybacks are not new in crypto, but the scale and consistency of Sky’s program have drawn notice.
Removing tokens from circulation reduces potential selling pressure and rewards holders with gradual value appreciation.
Sky’s commitment of $75 million to this strategy points to a robust treasury and confidence in its ecosystem.
Other projects have launched similar programs, suggesting the model may gain broader adoption across the industry.
For Sky, the coming months will be crucial to determine whether current momentum can be sustained, especially if market conditions turn volatile again.
Investor sentiment appears to be shifting in line with these efforts. A token that fell to $0.035 earlier this year has nearly doubled since, reflecting renewed belief in its long-term role.
With a market capitalization of roughly $1.64 billion and over $6.2 billion total value locked on its platform, Sky is positioning itself as one of the more resilient players in the DeFi sector.