The native token of the Sky Protocol, SKY, has posted significant gains, rallying over 8% in the past 24 hours to reach $0.078. This surge comes amid a broader altcoin uptick and is fueled by a combination of strong perpetual market activity and a recent, pivotal governance decision.
Market data reveals a substantial inflow of capital into SKY's perpetual markets. Over the past day, SKY's market capitalization surged by roughly 10%, adding about $178 million to reach a valuation of around $1.78 billion. Trading capital in these markets climbed 12% to $27 million. A key bullish signal, the Taker Buy/Sell Ratio, has remained above 1, confirming that buying volume exceeds selling volume. This activity has translated into more long contracts, supported by a positive Open Interest Weighted Funding Rate, with roughly 1.4 million contracts remaining open.
The price advance is also underpinned by a major governance update. A recent on-chain vote approved a proposal to reduce staking emissions and expand lending capabilities for the protocol's USDS stablecoin. The move standardizes emissions, fixing the allocation at approximately 838.18 million tokens over the next 180 days—a reduction of about 161.82 million tokens compared to previous plans. This supply squeeze is designed to ease dilution risks and support price appreciation.
Technical structure shows sustained bullish momentum. On the weekly chart, SKY has spent the last 15 weeks (roughly 103 days) forming a sequence of higher highs and higher lows following a correction that ended in mid-November. During this bullish phase, about 5.1 billion SKY in trading volume has changed hands. Analysts suggest that with limited overhead resistance, the asset could push beyond its previous high of $0.095 toward the $0.10 level, representing a potential 30% gain from recent prices.
However, some profit-taking is emerging from the spot market. Since around February 24, spot traders have initiated a sell-off, with total outflows reaching roughly $5.8 million. For now, this outflow is considered relatively small compared to the capital inflows and is not seen as an immediate threat to SKY's broader upward trajectory, especially with the ongoing token buyback program which has repurchased about 1.83 billion SKY tokens using USDS proceeds.
