Standard Chartered Predicts SKY Token Will Surge Fivefold by 2028

The Standard Chartered bank has started covering the SKY token ($0.06 · Live), from the decentralized finance platform Sky, which is an old MakerDAO protocol. The bank estimates that the token will increase by around five times until the end of 2028, reaching a price of $0.325, up from its current value of $0.065.

This projection was made by Geoffrey Kendrick, global chief of digital asset research at Standard Chartered. According to him, Sky functions as a kind of 'central bank' for DeFi because it issues a stablecoin, sets governance rules, and charges interest fees from agents within the ecosystem who use USDS ($1.00 · Live) issued by Sky.

These agents, such as Spark, Grove, and Obex, together took around $5.9 billion in USDS and pay Sky an 3.8% base fee. The SKY token is seen more as a staking income token rather than just a buy-and-hold asset, with potential for rewards through staking and smaller-scale token purchases.

The bank's projection depends largely on the growth of USDS and Sky's ability to turn that growth into revenue for the protocol. In June, the ecosystem reported that USDS had grown 96.9% in 12 months to $10.04 billion, with over $5.5 billion already allocated by agents within the Sky network.

The growth is expected to come from two stages: first, as Sky builds up its financial reserve, and second, when agents like Spark, Grove, and Obex use their combined limits of $17.5 billion to take on more loans and increase revenue for the protocol.