Sky has entered the top ten in protocol revenue rankings. Has the market's funding preferences shifted?
TL;DR
Sky Protocol did indeed enter the top ten list of protocol revenue , ranking 9th in DefiLlama's 24-hour revenue list ($503,000) and 8th in the fee list ($1.23 million). However, the overall DeFi market is experiencing capital outflows , with TVL down 35% from its October peak. There is currently no clear evidence that market preferences have fully shifted to DeFi protocols.
Core Analysis
Sky Protocol revenue rankings confirmed.
In the latest DefiLlama earnings rankings , Sky Protocol is ranked 9th with $503,000 in 24 hours. (defillama.com )
| Ranking | protocol | 24-hour income | Sources of income |
|---|---|---|---|
| 1 | Tether | $23.48 million | USDT Treasury Bond Yield |
| 2 | Circle | $7.7 million | USDC Treasury Bond Yields |
| 3 | Hyperliquid | $2.31 million | Perpetual/Spot Fees |
| 8 | Sky Lending | $1.23 million | Stability/Clearance/PSM Fees |
| 9 | Sky | $503,000 | Expenses minus DSR/Expenditure |
| 10 | Jupiter | $366,000 | Aggregator/Perpetual Fee |
Fee Ranking Performance : Sky also ranked 8th in the 24-hour fee ranking, with fee revenue of $1.23-1.28 million, 7-day fee revenue of $8.24 million, and 30-day fee revenue of $35.78 million. (defillama.com )
On-chain financial data analysis
Key performance indicators :
| index | Current value | 30-day changes | Annualized performance |
|---|---|---|---|
| TVL | $5.85 billion | -16.3% | Major DeFi Protocols |
| 30-day income | $13.89 million | +10.68% | $167 million annualized |
| 30-day fee | $35.78 million | Stable growth | $429 million annualized |
| Repurchase expenditure | $87.78 million cumulative | $7.2 million (30 days) | Ongoing |
Buyback Mechanism Effect : The protocol uses USDS surplus to purchase SKY tokens through the Smart Burn Engine, with a cumulative buyback value of $87.78 million, obtaining 1.399 billion SKY tokens (representing 5.17% of the circulating supply). Sky Protocol's TVL has decreased from $6.99 billion to $5.85 billion in the past 30 days.
Market Fund Flow Analysis
Overall DeFi Trends :
| period | DeFi TVL | range of change | Main impact |
|---|---|---|---|
| October 7th peak | $172 billion | benchmark | Market High |
| November 28 | $112.7 billion | -35% ($60 billion) | Significant capital outflow |
| Weekly changes | - | -12.45% | Continuing downward trend |
Performance of leading protocols : Aave TVL $30.3 billion (-18%), Lido $23.5 billion (-28%), EigenLayer $11.2 billion (-31%), indicating industry-wide contraction. (news.bitcoin.com )
Altcoin Market Signals : The Altcoin seasonal index is 21-33 (BTC dominance threshold <25), with a BTC dominance rate of 58.8%, indicating that funds are still biased towards Bitcoin rather than DeFi tokens. (ainvest.com )
Social sentiment analysis
Positive narrative :
- Stablecoin Status : The community recognizes Sky as the third-largest stablecoin issuer, with USDS showing significant growth as a key revenue driver for the protocol. x.com
- Governance Advantages : KOLs emphasize SKY's status as a blue-chip DeFi project, highlighting the uniqueness of its USDS yield infrastructure within the stablecoin sector. x.com
- Organic Growth : sUSDS' expansion to a near $4 billion market capitalization is seen as a milestone in organic adoption, highlighting its non-incentivized growth model. x.com
Cautionary view : Some analysts warn of potential liquidation risks for stUSDS holders when SKY prices lag. x.com
in conclusion
Sky Protocol has indeed successfully entered the top ten in protocol revenue rankings , primarily due to the expansion of its USDS stablecoin ecosystem and its effective revenue model. However, the current market environment does not show a shift in overall funding preference towards DeFi protocols . On the contrary, the DeFi sector is experiencing significant capital outflows, with total TVL declining by 35%, and the Altcoin seasonal index remaining in the BTC-dominated range.
Sky's success reflects more its unique stablecoin yield mechanism and governance token economics advantages than a shift in industry-wide funding preferences. Its revenue growth (+10.68%) and ongoing buyback program demonstrate the protocol's healthy development, but this performance stands out relatively against the backdrop of overall DeFi contraction, rather than representing an absolute market trend reversal.