Sky (SKY) Price Prediction

Deep Dive

1. MKR-to-SKY Migration Cliff (Bearish Impact)

Overview:
The token swap from Maker (MKR) to SKY (1:24,000 ratio) entered its penalty phase on September 18, 2025, reducing rewards for late upgraders. Major exchanges like KuCoin and Bitget have delisted MKR futures/spot pairs, accelerating migration pressure.

What this means:
Delayed conversions could flood the market with discounted SKY post-deadline, increasing sell pressure. However, 56% of MKR has already upgraded (Sky Dashboard), suggesting partial risk mitigation.

2. Buyback-Driven Supply Shock (Bullish Impact)

Overview:
Sky Protocol uses protocol revenue to buy back SKY weekly, burning ~1.4M USDS (≈17M SKY) each week. Over 1.1B SKY (3.28% of supply) has been removed, with $80M+ spent since 2024.

What this means:
Sustained buybacks reduce liquid supply, creating structural scarcity. With $230M annual revenue (July 2025 report), this mechanism could counterbalance migration-related selling.

3. Credit Rating & Regulatory Scrutiny (Mixed Impact)

Overview:
S&P’s B- rating (August 2025) flagged risks like founder Rune Christensen’s 9% governance control and concentrated USDS deposits. However, Sky’s $1.2B treasury and $7.9B USDS market cap signal resilience.

What this means:
Institutional adoption may slow due to perceived risks, but protocol upgrades (e.g., decentralized “Stars” like Spark Lend) could improve governance scores long-term.

Conclusion

SKY’s near-term price hinges on migration completion and buyback stamina, while its 2026 trajectory depends on decentralizing governance and USDS adoption against rivals like DAI. Will Sky’s treasury-backed buybacks offset post-migration volatility? Monitor the SKY/USDS staking ratio and MKR upgrade rates for clues.