Summary
- Sky Protocol (SKY) rose as funds flowed into DeFi infrastructure project Spark (SPK).
- After the KelpDAO security incident, some liquidity shifted into Spark (SPK), sending SKY up about 10%% and SPK up 78%%.
- Spark’s total value locked (TVL) climbed from about $3.7 billion to more than $5 billion, though DeFi security incidents are shaking confidence in the sector.
Forecast Trend Report by Period
Sky Protocol advanced as funds flowed into Spark, its DeFi infrastructure unit. The token appeared to get a short-term boost as some liquidity shifted after a security breach at KelpDAO.
According to CoinMarketCap data on April 25, Sky Protocol’s SKY token rose to $0.0835 from $0.0774 on April 18, before the KelpDAO incident. That represents a gain of about 10% over the past week. SPK jumped 78% over the same period.
Sky Protocol is the rebranded version of MakerDAO, the DeFi project known for the DAI stablecoin. Following the rebrand, DAI became USDS and Maker became Sky. The protocol issues a dollar-pegged stablecoin backed by crypto assets and real-world assets, or RWAs.
The rally appears to have been supported by growth at Spark, a SubDAO under Sky Protocol. Spark is infrastructure that deploys stablecoin reserves across DeFi and RWAs. It also offers an interest-bearing service called Spark Savings.
After the recent KelpDAO hack, some DeFi protocols saw funds leave their platforms, with part of that liquidity moving to Spark. Spark’s total value locked, or TVL, increased from about $3.7 billion to more than $5 billion.
In the short term, that shift in capital is supporting gains in Sky Protocol. Still, repeated security incidents in DeFi are undermining confidence across the broader industry.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
