Sky (SKY) rises to the sky due to an acquisition wave worth 65 million USD

Sky (SKY) is likely entering a bounce back phase as the market capitalization once again surpasses the 1 billion USD mark. The project's ecosystem is witnessing a strong wave of upgrades, with over 84% of users having switched to SKY. In the past month alone, up to 10,000 MKR have been upgraded, bringing in approximately 100,000 USD in accumulation fees.

The recovery momentum of SKY in the last 24 hours has been reinforced as the price surged by over 10%, under the combined effect of a trading volume explosion and the buyback program (buyback). According to data from CoinMarketCap, the daily trading volume has skyrocketed by 78%, reflecting a clear increase in interest and trading activity heating up in the market.

Why did SKY's price increase today?

According to data from SKY Money, the token buyback activity has shown steady growth since the beginning of November. As of now, the total number of tokens repurchased has reached 1.395 billion tokens, equivalent to 65.64 million USD, after adding an additional 6.21 million tokens recently.

However, the pace of the buyback is showing signs of slowing down, having decreased by 2,250 SKY, as the new program has gone through about half of its course. The average value of each buyback transaction is currently around 10,000 USD, according to SKY Money's statistics.

Source: SKY MoneyAt the same time, this altcoin has also recorded an increase in staking, thereby contributing to strengthening the level of security of the network. Currently, about 35.94% of the total SKY supply, equivalent to 385.48 million USD, is being put into staking.

According to DefiLlama, the daily trading volume has increased by an additional 10 million USD, reaching 23.55 million USD, up 1.7% compared to the 13.44 million USD of the previous day. In addition, fee revenue in Q4 reached 26.75 million USD, although it is still significantly lower than the 45.3 million USD recorded in the previous quarter.

Source: DefiLlama## Does TVL hinder the price increase?

SKY has just recorded a decisive breakout from the downtrend line on the 4-hour timeframe, simultaneously reinforcing this signal with a clear and convincing retest. This trend line has existed for the past two weeks, reflecting the prolonged dominance of the bears in the recent period.

Notably, the supply pressure is considered to be weakening, although the price has approached the psychological resistance level of 0.050 USD. The RSI index has risen sharply into the overbought territory and continues to trend upward, indicating that the bulls are in control of the price movement in the short term.

This move raises hopes that SKY may have formed a bottom, amidst recent signals of a slight bounce back in the altcoin market. If the upward momentum is maintained steadily, SKY has the potential to target the mark of 0.0620 USD, or even higher in a positive scenario.

Source: TradingViewNotably, contrary to the market's bullish expectations, the total value locked (TVL) in the SKY ecosystem is declining. Over the past 30 days, TVL has dropped from 7.7 billion USD to 6.6 billion USD, which could become a hindrance to the price growth.

Source: DappRadarThe aggregated indicators currently show that the market sentiment is still in a state of indecision, though slightly leaning towards positive. However, for the uptrend to be confirmed and sustained, SKY needs to maintain its position above the recently broken trend line.

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