What is the logic behind Sky Protocol spending over 100 million USD to buy back SKY?

Sky Protocol continues to execute its buyback program this week, having repurchased 31.57 million SKY tokens last week at a cost of $1.9 million. More notably, since the buyback mechanism was launched, Sky Protocol has invested over $102 million in buybacks. What does this figure reflect? Let’s take a look.

Stable Buyback Scale, Consistent Execution

According to the latest news, Sky Protocol’s buyback mechanism is decentralized, with parameters approved by Sky ecosystem governance. This means that buybacks are not temporary measures but institutionalized, ongoing value support methods.

The average cost is close to the current price

It’s worth noting that the average buyback cost is around $0.06, which is nearly the same as SKY’s current price of $0.064301. This indicates two points:

• The buyback price is relatively rational, avoiding chasing high prices
• The current price level is recognized and supported by the project team

Token Fundamentals Are Healthy

Data from related sources show that SKY’s market performance is solid:

• Market cap ranks 50th, in the upper middle among cryptocurrencies
• Market cap is $148 million, fully diluted market cap is $151 million, both are close
• 7-day increase of 14.54%, indicating market enthusiasm
• 24-hour trading volume of $27.46 million, with sufficient liquidity
• Circulating supply accounts for 98%, with a relatively clear supply structure

Long-term Impact of Buybacks on Supply

SKY’s total supply is approximately 2.346 billion tokens, with 2.299 billion tokens in circulation. Based on the $102 million buyback scale and an average cost of $0.06, about 170 million tokens have been repurchased. Removing these tokens from circulation provides substantial relief to long-term supply pressure.

Project’s Value Commitment

A buyback investment of $102 million is no small figure. It demonstrates Sky Protocol’s commitment to the value of its own tokens and serves as a direct value support mechanism. Compared to mere marketing and narrative efforts, real buybacks better reflect the project team’s confidence.

Summary

Sky Protocol’s ongoing buyback program demonstrates the project’s stability and emphasis on token value. The total investment scale of over $102 million, rational buyback prices, and institutionalized execution mechanisms all point to a relatively healthy project ecosystem. For investors, such buyback mechanisms may not be catalysts for explosive growth but provide long-term value support and certainty. The current market performance of SKY (up 14.54% in the past 7 days) also confirms market recognition of the project’s fundamentals.