Standard Chartered Sees Ethena’s USDe Supply Reaching $40 Billion by 2028, Sets ENA Price Target at $2
Summary
- Standard Chartered said Ethena’s stablecoin USDe supply is projected to reach $40 billion by the end of 2028.
- Standard Chartered set a year-end 2028 price target of $2 for Ethena’s native token ENA, saying that would be about seven times its $0.28 price at the time.
- Standard Chartered said ENA buybacks tied to expanding USDe supply and revenue diversification producing a blended yield of about 5.2% are the key pillars behind its ENA price outlook.
Forecast Trend Report by Period
Standard Chartered projects that Ethena’s stablecoin USDe will expand eightfold from current levels to $40 billion by the end of 2028.
Cointelegraph reported on October 30 that Standard Chartered recently initiated coverage of Ethena’s native token, ENA, and set a price target of $2 for the end of 2028. That would be about seven times its $0.28 price when the report was written.
The bank expects USDe to grow slightly faster than the broader stablecoin market over the same period. It also projects Bitcoin will reach $300,000 and Ether $18,000 by the end of 2028, suggesting ENA would deliver bigger gains than either asset.
Standard Chartered cited revenue diversification as a key driver of USDe’s growth. As returns from Ethena’s traditional basis trade have declined, the protocol has expanded beyond holding spot crypto and taking short positions in perpetual futures. It is broadening its activities into decentralized finance, institutional lending, real-world assets and basis trades tied to equities and commodities. The blended yield across those revenue streams is currently about 5.2%.
The bank also forecasts the tokenized-asset market will grow from about $350 billion at present to $4 trillion by the end of 2028. As that market expands, the range of assets Ethena can use to generate returns could widen as well.
ENA buybacks linked to USDe supply growth were another key pillar of the price outlook. In a governance vote in early September, Ethena approved a fee switch that would direct 95% of net business income to ENA buybacks once USDe supply reaches a predetermined threshold. Ethena estimates that if USDe supply reaches $25 billion, annual ENA buybacks could total $375 million, based on a 6% gross protocol yield and a 25% net margin.
Standard Chartered said that if USDe supply reaches $40 billion and ENA remains near current levels, annual buybacks could amount to about 23% of ENA’s circulating market capitalization. It said that level would be difficult to sustain, and that as ENA rises, buybacks would account for a smaller share of market value.
ENA traded at about $0.27 as of October 30. It has risen about 28% over the past week and 77% over the past month. Its market capitalization stood at about $2.65 billion.
