In a year marked by challenges for the overall cryptocurrency landscape, Sky Protocol stood out by recording an impressive annualized gross revenue run rate of $419.08 million. This milestone was reported by the Sky Frontier Foundation, which indicated that the figure reflects the results of the last three monthly settlement cycles.

Notably, Sky's reserves reached $82.5 million by the end of June, showcasing an increase of approximately $33.7 million since March. Furthermore, the yield accrued to Sky Savings USDS (sUSDS) holders has exceeded $250 million since the product's launch, indicating robust participation and investment.

The deposits in sUSDS have surged 85% year-on-year, up from $3.4 billion, while the USDS supply has expanded by 96.9% in the same time frame. To sustain this upward trend, the Sky Frontier Foundation has proposed an ecosystem-wide initiative aimed at enhancing security measures to mitigate risks and reduce operational expenses.

Following the release of the earnings report, the native token, SKY, experienced a significant price rally, defending key levels and reaching a local high of $0.06. At the time of reporting, SKY was trading around $0.0602, reflecting a daily increase of 4.98%.

The positive market sentiment led to intra-protocol capital inflows increasing to $120 million from just $2.4 million in a single day. Similarly, the activity within Futures trading indicated heightened engagement among traders, with inflows rising to $4.16 million and a notable drop in outflows to $3.97 million.

As the Futures Netflow improved by 14% to $190,000, there was a clear indication that traders were more willing to take on leveraged positions. Concurrently, the Spot market also saw continued buyer accumulation, marking four consecutive days of net outflows from exchanges, with Spot Netflow reported at near -$66,000.

Supported by strong demand, the token's momentum showed positive indicators. The Stochastic Momentum Index (SMI) increased to 42, hinting at an improving trend despite remaining below the 50 threshold. Should buying enthusiasm persist, this could pave the way for movements towards $0.064 in the short to medium term.

Yet, if momentum wanes, the token may face challenges sustaining its gains, with potential drops below $0.06, revisiting levels near $0.056.

This content is informational and not financial advice.