Sky Protocol Pumps 13%, Here’s What Sparked the Move - Crypto News Flash

SKY surged 13% after the Coinbase NY listing, opening access to 19.5M new potential investors.

Founder Rune Christensen bought $1.3M in SKY, signaling strong confidence in the Endgame strategy.

Sky Protocol made headlines in the crypto market after recording a 13% price surge in just 24 hours. This surge wasn’t just a number, several major events were the trigger.

The most noteworthy was, of course, when SKY officially traded on Coinbase in New York on July 24th. This move opened access to more than 19 million residents who had previously only been able to purchase eight selected tokens due to BitLicense restrictions imposed by local authorities.

Coinbase NY Listing Opens the Gates for Sky Protocol

To be listed on Coinbase New York, Sky had to pass the notoriously stringent due diligence process of the NYDFS. So, it could be said that this move opened a huge floodgate for an influx of new investors that had previously been held back. Interestingly, Sky Protocol emerged with a strong positioning as decentralized internet infrastructure, not just another DeFi project.

This sentiment was further strengthened after founder Rune Christensen purchased $1.3 million worth of SKY on the same day. This move further convinced many that Sky was indeed entering a new phase of its fully decentralized plan, which they called “Endgame.”

Buybacks and Billion-Dollar Subsidiaries Are Driving Momentum

Turning to the token issue, Sky also appears serious about maintaining its value. Since June, more than 1 billion SKY tokens have been bought back for over $80 million. This means the circulating supply in the market is being squeezed daily, roughly $250,000 per day. To some, this figure may sound technical, but the effect is real: supply is becoming scarcer, and prices have room to rise even higher.

Besides that, according to data from Token Terminal, Sky is expected to generate $350 million in revenue over the next 12 months.

On the other hand, the role of Spark Protocol, Sky’s subsidiary, cannot be ignored. According to recent records, its TVL has exceeded $8 billion, and the protocol’s annual revenue is estimated at $240 million.

Spark itself was previously part of MakerDAO, before the entire system and token migration was shifted to Sky DAO. The CNF even highlighted the launch of the SKY token on the Optimism network, which makes DeFi interactions faster and cheaper in the Superchain ecosystem.

Furthermore, from a technical perspective, the SKY token is also showing strong signals. The RSI 14 indicator remains at 70, indicating it has not yet entered the overbought zone. The RSI 7 even recorded 73.91.

Source: CoinMarketCapMeanwhile, the chart has just broken resistance at the 23.6% Fibonacci level ($0.089), with a new target targeted at around $0.098 based on the 127.2% extension projection. The MACD? Also in a bullish crossover position, the difference between the MACD line and the signal line indicates still solid momentum.