Standard Chartered has issued a bullish forecast for SKY, the native token of decentralized finance protocol Sky. The bank expects its price to reach $0.325 by 2028.
The target implies an increase of around 460% from SKY’s current price of approximately $0.058. Standard Chartered linked this potential to the growing adoption of the USDS stablecoin.
According to Geoff Kendrick, Standard Chartered’s global head of digital assets research, Sky could benefit from the expansion of onchain lending. Staking rewards could also increase the value distributed to token holders.
The bank expects SKY to deliver a performance similar to Ethereum through 2028. Under this scenario, the token could outperform Bitcoin over the same period.
Standard Chartered sets $0.325 target for SKY
Geoff Kendrick compared Sky’s business model to that of a central bank. The protocol issues the USDS stablecoin and determines its borrowing conditions.
Sky also generates interest income from borrowers. The protocol can distribute part of this revenue to SKY holders through its staking mechanism.
Kendrick expects staking rewards to provide the largest contribution to SKY’s potential gains. Token buybacks will likely play a smaller role.
Sky previously operated under the MakerDAO name. As part of its rebranding, the protocol began prioritizing USDS over DAI. It also started converting the MKR token into SKY.
Standard Chartered believes wider USDS adoption could support the protocol’s revenue. Growing demand for onchain lending among traditional financial institutions could accelerate this expansion.
How could USDS adoption affect the SKY price?
Sky ranks among the largest stablecoin issuers behind Tether and Circle. The protocol also holds a strong position in the yield-bearing stablecoin market.
According to DeFiLlama data, the total value locked in the sUSDS pool stands at approximately $4.5 billion. The pool currently offers an annual yield of around 3.6%.
sUSDS allows users to earn returns by depositing their USDS holdings into the protocol. Further growth in this product could increase Sky’s revenue and staking rewards.
The bank expects the global stablecoin market to reach $2 trillion by the end of 2028. However, the future share of yield-bearing stablecoins within this market remains uncertain.
SKY could track Ethereum and outperform Bitcoin
According to Standard Chartered’s forecast, SKY could appreciate alongside the broader cryptocurrency market. The bank expects its performance to roughly track Ethereum.
Standard Chartered previously set an $18,000 price target for Ethereum by 2028. Its Bitcoin target for the same period stands at $300,000.
The SKY price rose approximately 2% from its daily low following the forecast. However, the token remains down around 14% over the past week.
Trading volume increased by 10% over the last 24 hours. Open interest in SKY futures also approached $30 million.
Standard Chartered’s forecast depends on several long-term assumptions. Demand for USDS, the development of onchain lending and regulatory conditions will determine whether SKY can reach the projected price.
