Reviewed by Reviewed by Jacob Thomas Updated 20:00 EDT October 8, 2026 Share Share Share Back to Top Sky [SKY] had one of the most notable declines in the past day. The asset has since plunged by 12% at press time, as bearish pressure continues to kick in, forcing the price lower
Market analysis indicates that further decline isn’t off the table and that investors need to be more wary, as capital flow and losses recorded in the past day still carry a major risk of further decline
Whales, traders who control large amounts of capital in an asset, have been the major influencing factor behind SKY’s recent performance. The Whale Retail Delta, a tool used to track which cohort of the market is dominating, confirmed the presence of whales in the market
The Whale Retail Delta has a reading of 0.288 as of writing, a surge from its previous day’s level, confirming that whale activity in the market increased over this period
Whale activity is already affecting the market, with a large disparity between the losses recorded by long and short traders over the past 24 hours
Long traders lost around $63,000, while short traders in the market lost a meagre $84 within the same period. This represents roughly 750 times more losses recorded by longs than shorts over the same period, suggesting the scale of whale involvement in the market and how much it can impact price dynamics
The perpetual market has provided the clearest indication that a potential decline could be ahead for SKY in the coming trading sessions
This comes as the Funding Rate turns negative, reading -0.0008% at the time of writing. Notably, the Funding Rate began declining from 0.0079% in the early hours of the 8th of October to its present level
When there is a notable decline in the Funding Rate, it confirms that selling began in the early hours of the day. This has also been followed by a contraction in the capital base of the perpetual market
Open Interest, which calculates the amount of capital in the perpetual contracts of an asset, has declined by 13% to roughly $51 million
Whales are already affecting the market, driving a large disparity between the losses recorded by long and short traders over the past 24 hours
On-chain, the Sky Protocol continues to maintain decent performance. According to data from DeFiLlama, the protocol’s fees and token holder revenue remain steady and continue to grow
On the 7th of October, Sky generated roughly $969,513 in fees, up slightly from the $925,835 from the previous day. Income received by token holders has also stayed consistent, with the most recent payment to them totaling $189,000
On-chain activity suggests that the protocol’s utility remains strong, while the broader decline could simply reflect weakness across the cryptocurrency market
Olayiwola Dolapo is a Crypto Research Analyst at AMBCrypto, driven by a mission to make the digital asset space more transparent and understandable for all. His journey was catalyzed by an early experience in the market that underscored the importance of deep, foundational knowledge—a principle that now guides his professional work
