Standard Chartered Pumps SKY Prices with Bullish Forecast and Tokenomics Narrative

Standard Chartered's recent research coverage of Sky (SKY) has sent shockwaves through the crypto market, driving a 3.16% price surge in just over 16 hours.

The bank's bullish long-term target for SKY is $0.325 by 2028, a fivefold increase from current prices. Standard Chartered highlights Sky's 'federal bank' model and the growth of its USDS stablecoin to over $10 billion in supply as key drivers of this growth.

The research note also details a rules-based treasury management framework, which allocates protocol revenues to operations, a decentralized backstop fund, and market buybacks. This institutional-grade risk control is seen as an attractive combination for DeFi governance tokens.

Sky's tokenomics narrative has been amplified by the first-ever token burn, which permanently removed 2.86 million SKY from circulation. The protocol also introduced a program where 5% of the monthly Net Protocol Surplus is used for ongoing buybacks and burns.