The cryptocurrency market has entered another phase of uncertainty, with many digital assets experiencing prolonged price stagnation or decline. Yet amid this broader malaise, $MKR**—now rebranded as **$SKY—has begun to show signs of strength. What’s driving this counter-trend momentum? Behind the scenes, a powerful combination of structural upgrades, aggressive buybacks, and upcoming token incentives is setting the stage for a potential breakout.
This article explores why MKR (SKY) could outperform most crypto assets in Q1 and Q2 of 2025 on a risk-adjusted basis, driven by strong fundamentals rather than speculative hype.
Monthly $30M Buybacks: A Powerful Catalyst
One of the most significant developments for MKR is the resumption of its aggressive buyback program—now operating at an accelerated pace.
Following a governance proposal passed on February 24, an additional $55 million in USDS (formerly DAI)** has been allocated specifically for token buybacks. These repurchases will occur at a rate of **$30 million per month, equating to roughly $1 million per day.
👉 Discover how protocol-driven buybacks can fuel long-term value growth.
To put this into perspective: at MKR’s current price of around $1,600, a $30 million monthly buyback translates to the protocol absorbing approximately 1.9% of the total MKR supply each month. Over a year, that could amount to more than 20% of the circulating supply being repurchased—assuming sustained execution.
Compare this to MicroStrategy’s Bitcoin accumulation strategy: it took them 4.5 years to acquire roughly 2% of Bitcoin’s total supply. The sheer velocity and scale of MKR’s buyback program are unprecedented in decentralized finance and likely not yet fully priced into the market.
Moreover, these buybacks are not being funded by reserves alone. The Maker protocol itself is highly profitable—generating $125 million in net annual revenue**, or about **$10.4 million per month—primarily from stability fees and yield-generating strategies across its collateral assets.
This means the buyback engine is self-sustaining and could even scale further if revenues increase.
DAI Rebranded as USDS — Supply Nears All-Time Highs
Despite lukewarm market sentiment toward the rebranding effort, the underlying usage of the ecosystem remains robust.
DAI, now known as USDS, continues to grow in adoption. After dipping to a low of $4.5 billion in supply during periods of market stress, USDS has rebounded and is approaching its all-time high supply levels.
This resilience highlights a key insight: while branding may influence perception, real-world utility drives long-term value. The fact that USDS maintains strong demand—even amid regulatory uncertainty and competitive pressure from centralized stablecoins like USDC and USDT—speaks volumes about its embedded role in DeFi.
Higher stablecoin issuance leads directly to increased protocol revenue, which in turn fuels more buybacks and strengthens the tokenomics loop for MKR holders.
We’re seeing a classic case of “weak sentiment, strong fundamentals”—a setup historically favorable for contrarian investments. When the narrative eventually shifts, MKR could experience what some call a “hated recovery”: a sharp rally driven by overlooked strength.
SPK Farming Launches: Igniting New Demand
Another major catalyst on the horizon is the launch of Spark (SPK) token farming.
Spark is a $3 billion TVL lending and asset management platform spun out from MakerDAO. Its native governance token, **$SPK, is expected to launch soon via a fair launch model—meaning no pre-mine, no VC allocations. Instead, users will earn SPK by staking either USDS or SKY (MKR)**.
This creates a powerful flywheel:
- Staking demand for MKR and USDS increases
- More USDS is locked, boosting stability and reducing circulation
- Protocol revenue rises from lending activities
- Increased profits enable larger buybacks
- MKR scarcity intensifies
Crucially, 50% of the total SPK supply will be distributed within the first two years. Assuming a conservative fully diluted valuation (FDV) of $1 billion**, that means **$500 million worth of SPK rewards will flow to MKR and USDS stakers.
These incentives act as a form of yield subsidy, encouraging users to hold and stake rather than sell—effectively tightening supply while increasing utility.
👉 Learn how token farming models create sustainable demand cycles.
Beyond Spark, other sub-DAOs under the Maker umbrella—such as Solana Star and RWA Star—are also preparing for launch. Each new "Star" entity introduces additional revenue streams and future buyback potential, expanding the economic footprint of the overall ecosystem.
U.S. Stablecoin Legislation: GENIUS Act Could Be a Tailwind
Regulatory clarity has long been a missing piece for stablecoin projects. Now, momentum is building behind the GENIUS Act (Generative, Explainable, Nationally Integrated Underlying Stablecoin Act), a proposed U.S. federal framework aimed at regulating payment stablecoins.
While Circle (issuer of USDC) is often seen as the primary beneficiary, the legislation could indirectly boost confidence in decentralized alternatives like USDS.
If the GENIUS Act gains traction and sparks broader discussion about stablecoin innovation, MKR may emerge as a preferred exposure vehicle for investors seeking indirect leveraged plays on stablecoin adoption.
Unlike pure-play stablecoin issuers, MKR benefits from both protocol-level revenue generation and token scarcity mechanics, making it uniquely positioned to capture upside if regulatory tailwinds accelerate industry growth.
Although this factor is less immediate than buybacks or farming incentives, it adds another layer of asymmetric upside potential to the investment thesis.
FAQs: Your Questions About MKR Answered
Q: Is MKR the same as SKY?
Yes. MKR has undergone a rebranding and is now officially known as SKY, though the token contract and functionality remain unchanged. All existing MKR tokens automatically became SKY.
Q: How do buybacks affect MKR's price?
Buybacks reduce the circulating supply of MKR over time while increasing demand from the protocol itself. With $30 million allocated monthly, this creates consistent downward pressure on available supply—a bullish signal for long-term holders.
Q: Can I earn yield with MKR/USDS?
Yes. By participating in SPK farming, users can stake MKR (SKY) or USDS to earn $SPK rewards. This provides an additional income stream beyond any price appreciation.
Q: Why did the rebrand to SKY happen?
The rebrand reflects MakerDAO’s evolution from a single protocol into a decentralized network of autonomous entities ("Stars"). The new identity aims to represent a broader ecosystem beyond just DAI (now USDS).
Q: Is MKR safe during market downturns?
Historically, MKR has shown resilience during volatile periods due to its revenue-backed fundamentals and governance utility. While not immune to market swings, its performance tends to stabilize faster than many speculative altcoins.
Q: Where can I buy MKR/SKY?
MKR/SKY is listed on major cryptocurrency exchanges including OKX, where you can trade with low fees and access advanced tools for monitoring price action and liquidity.
👉 Start trading MKR with deep liquidity and real-time analytics.
Conclusion: Strong Fundamentals Over Hype
The rebrand from MKR to SKY may not have captured public imagination—but that doesn’t diminish its technical and economic progress. In fact, the lackluster reception might have already been priced into the asset’s performance between April 2024 and February 2025.
Looking ahead, the convergence of aggressive buybacks, SPK farming incentives, growing USDS adoption, and potential regulatory tailwinds forms a compelling case for optimism.
Even in uncertain markets, MKR has historically demonstrated resilience. With multiple catalysts aligning in 2025, it stands out as one of the few crypto projects combining sustainable revenue, deflationary mechanics, and ecosystem expansion.
For investors focused on fundamentals rather than fleeting narratives, MKR (SKY) represents a rare opportunity: a mature DeFi blue-chip quietly building momentum beneath the surface.
Core Keywords: MKR, SKY, USDS, buyback program, SPK farming, stablecoin legislation, MakerDAO, DeFi token