Standard Chartered Bank Expects 5x Growth for This Altcoin by 2028: What is the Risk?

Standard Chartered predicts an approximately 5x surge for Sky’s (formerly MakerDAO) SKY token by the end of 2028.

Standard Chartered initiated coverage on the decentralized finance platform Sky and estimated that the SKY price could rise from approximately $0.065 to $0.325. The bank’s forecast is based on the assumption of growth in Sky’s USDS stablecoin activity and a greater distribution of generated revenue to token holders.

The bank’s head of digital assets research, Geoffrey Kendrick, described Sky as the “federal bank of DeFi.” This comparison stems from the platform’s issuance of USDS and DAI, creation of governance rules, and provision of funds to borrowers in the ecosystem at wholesale interest rates. According to the bank’s analogy, Spark, Grove and Obex are positioned as main intermediaries likened to commercial banks.

Borrowing capacity stands out in Sky’s growth scenario

Spark, Grove and Obex’s current total USDS borrowing stands at $5.9 billion. The combined borrowing limit for these entities is given as $17.5 billion. While Spark focuses on crypto loans through platforms like Aave and Morpho, Grove invests in real-world asset-based products offered by companies such as BlackRock, Janus Henderson and Apollo.

Sky currently charges borrowers approximately 3.8 percent base interest. According to the bank’s expectation, an increase in borrowing could grow the platform’s revenue. Sky also generates income from USDC assets held via Coinbase and from legacy DAI credit vaults.

A larger portion of revenue could be distributed to SKY holders

Sky has a reserve buffer of approximately $90 million. Kendrick calculates that if the current pace is maintained, this reserve could reach $150 million within about eight months. It is estimated that if the reserve reaches 1.5 percent of the USDS supply, the revenue allocated for staking rewards and token buybacks could double.

The current staking yield for the SKY token stands at approximately 4.2 percent. Standard Chartered states that if the Sky ecosystem and USDS grow, the value distributed to token holders could increase 5x by the end of 2028; it notes that if other conditions remain unchanged, this could support the SKY price on a similar scale. The primary risk in Kendrick’s model is that growth in yield-bearing stablecoins remains slower than expected.