Sky Protocol (SKY), formerly known as Maker (MKR), was trading near $0.065 on September 1, up 2.3% on the day. The move comes two weeks before Binance completes the MKR-to-SKY transition on September 17, a catalyst that traders expect could boost liquidity and positioning.
The Legacy of MakerDAO Lives On in Sky Protocol
MakerDAO’s MKR token, one of DeFi’s oldest governance assets, remains actively traded at $1,567.92, supported by a $1.33 billion market capitalization and $48.4 million in daily volume.
With a maximum supply capped at around 1 million MKR, the token historically played a central role in governing Maker’s DAI stablecoin system and remains associated with a $6.1 billion TVL footprint.
But as part of the upgrade path, MakerDAO has initiated a full migration into Sky Protocol in August 2024, shifting governance, collateral, and capital buffers into the new SKY ecosystem.
Current data shows Sky managing $17.3 billion in TVL, more than double Maker’s reported figure, which means the rebrand consolidates legacy Maker infrastructure under a refreshed identity.
Buybacks and Treasury Bolster Investor Confidence
For traders, the most notable development inside Sky has been its aggressive buyback program, which has already absorbed over 1.17 billion SKY tokens worth $74.9 million.
The circulating supply stands at 23.44 billion SKY, with most tokens actively integrated into the ecosystem’s savings and staking modules.
Data shows that the Sky ecosystem manages a $378.3 million treasury balance, collateralized by more than $13.2 billion in assets, with USDS savings products yielding a 4.75% APY.
Sky Token Trades in a Tight Range
SKY price action remains compressed. Bollinger Bands show resistance forming near $0.078–$0.079, with immediate support at $0.0644. RSI sits at 39.7, reflecting neutral momentum after a volatile August that saw the token drop more than 17% month-on-month.
Moving averages remain tilted bearish, as eight major averages flash “sell,” but oscillators like the Commodity Channel Index (-59.6) and Stochastic indicators suggest the downside may be losing steam.
Traders on X describe current levels as “re-accumulation territory,” pointing to the combination of buybacks, savings APYs (4.75%), and growing user adoption (646,000 accounts) as long-term drivers.
The next two weeks will be pivotal for Sky Protocol as Binance finalizes the rebrand. With nearly $4 million in MKR trading volume, Binance’s shift to SKY could redirect significant liquidity.
Major exchanges like Coinbase, OKX, Bitget, and MEXC are also set to delist MKR and list SKY, ensuring liquidity and volume migrate to the new token.
However, skeptics warn of a possible “sell-the-news” moment when Binance and other exchanges complete the rebrand, especially given that SKY volumes have been shrinking over the past week.
For now, the $SKY token appears locked in a make-or-break range, awaiting either renewed inflows or capitulation before direction becomes clear.
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