Sky Protocol has spent nearly $75M on buybacks since February 2025.
SKY token has risen by 12.6% in a week, nearing previous highs.
Buybacks reduced supply and boosted investor confidence.
The price of the SKY token has jumped 12.6% over the past seven days as the Sky Network buyback program starts to bear fruits.
The steady rise comes after months of token repurchases, with Sky Protocol investing tens of millions of dollars to reduce supply and stabilise market confidence.
Sky Protocol’s buyback strategy
Sky, formerly known as Maker before rebranding in August 2024, has made headlines with its aggressive buyback plan.
Since February this year, the protocol has used nearly 75 million USD to purchase SKY tokens directly from the market.
The most recent update revealed that in August alone, Sky spent 5.5 million USD to acquire 73 million tokens.
Notably, this consistent activity has helped to gradually lift the token’s price.
In late February, SKY was trading just above six cents.
Today, it is changing hands at a little over seven cents, and while the number may look modest, it marks a meaningful recovery for a token that had faced periods of volatility.
The buybacks are designed to reduce circulating supply, creating upward pressure on value while signalling financial confidence from the project’s side.
SKY token price recovery gains momentum
Market data from Coingecko shows that SKY has gained more than 12% in the past week, outperforming several other decentralised finance tokens.
The token’s performance since the start of the buyback has been steady, rising over 8% across six months despite broader market swings.
In late July, SKY even touched 9.6 cents, getting close to its all-time peak of just over ten cents recorded in December, before taking a surprising dip to just above six cents in August.
By comparison, Uniswap’s UNI token has risen about 6% in the same timeframe, while Aave’s AAVE has gained over 25%.
These comparisons highlight that although SKY has not delivered the strongest returns, its growth is tied directly to a deliberate financial mechanism rather than just speculative market sentiment. This distinction makes Sky’s approach stand out within the altcoin space.
Why the buybacks matter
Token buybacks are not new in crypto, but Sky’s scale and consistency are drawing attention.
By removing tokens from circulation, the project is reducing potential selling pressure and rewarding holders with gradual value appreciation.
The fact that Sky has committed $75 million to this strategy suggests a strong treasury position and confidence in its ecosystem.
Other projects, such as World Liberty Financial and Pump.fun, have also launched similar programs, indicating that the model may become more common across the industry.
For Sky, the coming months will be crucial in determining whether the current momentum can be sustained, especially if market conditions turn volatile again.
Investor sentiment already appears to be shifting in line with these efforts. A token that fell to a low of 3.5 cents earlier this year has nearly doubled from that point, reflecting renewed faith in its long-term role.
With a market capitalisation of around $1.64 billion and more than $6.2 billion in total value locked on the platform, Sky is positioning itself as one of the more stable players in DeFi.
