Key Developments
Sky Protocol has successfully executed a significant token buyback program, investing over $80 million USDS to repurchase 1.25 billion SKY tokens. This strategic initiative has positively impacted the SKY token's market performance, leading to a price increase of 8-12% within a single week. Furthermore, the protocol's total value locked (TVL) has surged to $6.2 billion, reflecting a notable increase in market confidence.
Buyback Program Details
The substantial token buyback program by Sky Protocol involved repurchasing SKY tokens valued at $80 million USDS. This operation took place between February and October 2025. The initiative was orchestrated by the official Sky Protocol team, with no public endorsements from individual figures. This strategic move is intended to bolster market confidence and has contributed to a 12% rebound in SKY token prices over the past week. The protocol's total value locked (TVL) has consequently risen to $6.2 billion, indicating a strengthened market sentiment, even in the absence of direct statements from regulatory bodies or governmental entities concerning the project.
Market Impact and Comparisons
The buyback program demonstrated a focused approach by exclusively utilizing USDS for the repurchases, without involving ETH, BTC, or other cryptocurrencies. This strategy aligns with actions observed in other tokens such as World Liberty Financial and Pump.fun, although Sky Protocol's buyback has demonstrated unique levels of impact compared to similar programs. Official project dashboards and verified market updates indicate that no public statements were made by executive leadership or key opinion leaders regarding the Sky Protocol buyback program.
Future Market Outlook
While future market performance remains a subject of speculation, historical trends suggest that token buyback programs have the potential to stimulate price appreciation. Past instances have shown varied market reactions, ranging from significant price gains to potential losses, indicating that the impact of such programs can differ.