While everyone watched the Fed hold rates on Wednesday, DeFi's oldest bank quietly split in two.

Its stablecoin is growing faster than any top-10 rival. Its token just slipped below a level traders were defending. That contradiction is the whole trade in Sky right now — and most people searching for it are looking at the wrong ticker.

First, the ticker confusion. MakerDAO is now Sky. The old governance token $MKR was migrated into $SKY at 1 to 24,000, and major exchanges converted balances and delisted MKR pairs. MKR still shows near $1,510 on price sites, but trades thinly now — $SKY is the chart that matters.

Now the split. CoinDesk's October stablecoin report found Sky Dollar (USDS) grew 3.5% to $6.74 billion — the largest percentage gain among the ten biggest stablecoins. DAI, Sky's original stablecoin, reclaimed fourth place at $4.73 billion. Its savings product, sUSDS, still pays 3.80%.

But the protocol underneath is shrinking. Sky's total value locked is about $5.39 billion, down roughly 10% over 30 days, on about $28 million in fees and $13 million in revenue. Stablecoin up, collateral base down — that tension is the trade.

Institutions noticed anyway. Galaxy Digital put $100 million into sUSDS in September. Stablecoin Development Corp disclosed in early October that it holds roughly 10% of SKY, staked and unsold. Standard Chartered called Sky "DeFi's federal bank" with a $0.325 SKY target by end-2028. And Moody's gave Sky its first-ever rating of a stablecoin protocol — except it was B3, speculative grade, alongside S&P's B-.

Here is the honest version of that headline: the ratings make Sky legible to institutions, not safe. Moody's flagged roughly $90 million of equity against about $10 billion of managed assets — near 0.9% capital. Reserves sit well short of governance's $150 million target. And the GENIUS Act compliance date lands on 18 January 2027, with rules that could complicate the yield pitch sUSDS sells on.

The chart tells the same cautious story. $SKY trades near $0.0647, roughly 35% below its early-October high near $0.10. A 26 October analysis put support at the 200-day average near $0.0667 and the recovery hurdle at $0.0730 — price has now slipped under that support, with roughly $0.060 as the next floor. A daily close back above $0.0730 would change the picture; a slide through $0.060 would confirm the fade. Check the $SKY chart against those two lines — that is where this story gets settled.

History warns against getting carried away: the 2024 rebrand rally faded within weeks, and in December 2024 Maker posted record fees while MKR still fell nearly 20% that month. Strong protocol numbers and a rising token are not the same thing. Remember too that Sky's lending runs heavily on $ETH-backed collateral.

So here is the take: Sky is winning the stablecoin race nobody is watching, while its token pays for a thin capital cushion and a regulatory clock. That divergence resolves with fresh inflows — or another leg down. Which side are you watching first?

Not financial advice. DYOR.