- Sky Protocol has spent nearly $75 million on buybacks since February 2025
- SKY token up 12.6% over one week, approaching previous highs
- Buybacks reduce supply and bolster investor confidence
The SKY token price has jumped 12.6% over the past seven days as Sky Network’s buyback program starts to show results.
This steady rise follows several months of token repurchases, during which Sky Protocol invested tens of millions of dollars to reduce circulating supply and stabilize the market.
Sky Protocol’s buyback strategy
Sky, formerly known as Maker before its rebrand in August 2024, grabbed headlines with an aggressive buyback plan.
Since February of this year, the protocol has spent nearly $75 million buying SKY tokens directly from the market.
Recent updates show that in August alone Sky spent $5.5 million to acquire roughly 73 million tokens.
These sustained purchases have gradually supported the token’s price.
In late February SKY traded above six cents.
Today it changes hands at just over seven cents; while the figures may seem modest, this represents a meaningful recovery for a token that has endured a volatile period.
The buyback program is designed to shrink circulating supply, creating upward pressure on value while signaling financial confidence from the project team.
SKY token price recovery gains momentum
Market data from Coingecko shows SKY up more than 12% over the past week, outperforming several other decentralized finance tokens.
Performance since buybacks began has been steady, with SKY up over 8% in the past six months despite broader market swings.
In late July SKY even reached 9.6 cents, approaching its all-time high of 10 cents recorded in December, before falling unexpectedly to six cents in August.
Uniswap’s UNI rose roughly 6% over the same period, while Aave’s AAVE climbed more than 25%.
These comparisons underline that, although SKY’s returns are not the strongest, its growth is tied more directly to deliberate financial mechanics than to pure speculative market sentiment. That distinction makes Sky’s approach notable within the altcoin space.
Why buybacks matter
Token buybacks are not new to crypto, but the scale and consistency of Sky’s program are drawing attention.
By removing tokens from circulation, the project reduces potential selling pressure and rewards holders through gradual price appreciation.
The fact that Sky has allocated $75 million to this strategy signals solid treasury positioning and confidence in the ecosystem.
Other projects, such as World Liberty Financial and Pump.fun, have launched similar programs, suggesting this model may become more common across the industry.
For Sky, the coming months will be crucial in determining whether the current momentum can hold, particularly if market conditions turn volatile again.
Investor sentiment appears to have shifted in response to these efforts: a token that fell to a low of 3.5 cents earlier this year has nearly doubled from that trough, reflecting renewed belief in its long-term role.
With a market capitalization around $1.64 billion and over $6.2 billion in total value locked on the Sky platform, the project is positioning itself as a more established player within DeFi.