Sky Ecosystem Q4 Update and 2026 Outlook Summary

Summary

Sky Ecosystem Q4 Update and 2026 Outlook, published by Sky Frontier Foundation, details a pivotal year of efficient scaling where USDS stablecoin supply surged 74% to $9.2 billion. Driven by the successful deployment of Sky Agent Network comprising Spark, Grove, Obex, and Keel, Sky Protocol generated $338 million in Gross Protocol Revenue, marking a 10% YoY increase, while successfully reducing operational expenses by 63% YoY. This report confirms the status of the protocol as the world’s largest yield-generating stablecoin and third largest stablecoin overall, attributing its 2025 success to two fundamental pillars: the establishment of deep liquidity and the generation of diversified real-world yield.

Looking toward 2026, the report outlines a strategic shift from stabilization to aggressive market expansion. Sky Frontier Foundation models project USDS supply to reach $20.6 billion, a 124% YoY increase, driving Gross Protocol Revenue to $611.5 million (81% YoY growth) and Protocol Profits to $157.8 million (198% YoY growth). The analysis focuses on the initiative to diversify real-world yield sources ranging from private credit to AI compute financing to decouple returns from crypto volatility. Sky Frontier Foundation believes that favorable macroeconomic factors combined with the expansion of the Sky Agent Network resulting in a variety of real-world yield sources should position Sky Protocol and its stablecoin USDS as a premier global destination for risk-adjusted returns on USD capital.