Standard Chartered Sets $2 ENA Target, $40B USDe by 2028
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Standard Chartered has initiated coverage of Ethena’s ENA token with a year-end 2028 price target of $2, roughly seven times the $0.28 level cited in its research, according to Cointelegraph. The bank also expects the protocol’s synthetic dollar, USDe, to grow to $40 billion in supply by the end of 2028, an eightfold increase from its current scale.
CryptoSlate reported that the bank’s roadmap puts ENA at $0.42 at the end of 2026 and $1.10 in 2027 before the final leg higher, and noted that USDe supply has fallen from a peak above $10 billion to about $4.9 billion. The two outlets frame the same thesis differently: Cointelegraph emphasizes the bank’s revenue-to-buyback mechanics, while CryptoSlate stresses that Ethena must first reverse a contracting business.
A buyback-driven valuation case
The core of Standard Chartered’s argument is less about stablecoin growth in isolation than about what that growth does for ENA holders. Under the fee-switch framework, 95% of qualifying net revenue from covered businesses is directed toward token buybacks once USDe hits set supply levels. At $25 billion in supply, Ethena models $375 million in annual purchases against a 6% gross yield and 25% net take rate.
Standard Chartered projects that at $40 billion in USDe supply, annual buybacks could equal roughly 23% of ENA’s circulating market capitalization if the token’s price stayed flat. The bank treats that rate as unsustainable, arguing that investors would capitalize the expected stream of purchases into the token’s value, pushing the price up and lowering the buyback percentage until it settles closer to the 3% to 4% range that Uniswap’s UNI has stabilized at.
What has to happen first
Ethena’s ability to reach that scale depends on yield sources beyond the crypto basis trade — holding spot crypto while shorting perpetual futures — that drove its early growth. Lower funding rates have forced the protocol to expand into DeFi lending, institutional lending, real-world assets and basis trades tied to equities and commodities. Those strategies currently generate a blended yield of about 5.2%, which Standard Chartered says gives USDe room to scale.
The bank also assumes the broader tokenized-asset market grows from roughly $350 billion today to $4 trillion by the end of 2028, expanding the collateral pool Ethena can draw on. CryptoSlate noted that the bank sees real-world assets deployed on blockchains rising from about $40 billion to $2 trillion over the same period, and cited Ethena’s white-label stablecoin and Ethena Pay businesses as additional revenue lines.
Before any of that matters, USDe has to climb back. The fee switch begins at $7.5 billion in supply, meaning the protocol currently sits below the first threshold at which the buyback engine starts. Ethena also needs its newer yield strategies to absorb tens of billions of dollars without compressing returns, and the model’s 6% yield assumption has not been guaranteed across market cycles.
Why it matters
Standard Chartered’s note is one of the first sell-side research calls to put a hard number on the value of Ethena’s buyback mechanism rather than on stablecoin growth alone. If the bank is right, ENA would outperform Standard Chartered’s own forecasts for Bitcoin at $300,000 and Ether at $18,000 by the end of 2028 — a rare case of a large institution projecting an altcoin ahead of the two largest crypto assets. That framing matters because Ethena’s own economics contain a trade-off: routing more revenue to buybacks can leave less yield for sUSDe holders, who are the source of the deposits USDe needs to grow.
What to watch
The next verifiable checkpoint is USDe supply crossing the $7.5 billion fee-switch threshold, which is roughly $2.6 billion above its current level. Beyond that, the quarterly mix of Ethena’s yield sources, its blended rate and whether it re-approaches the previous $10 billion-plus peak will determine whether the buyback math Standard Chartered models begins to take effect.
Frequently Asked Questions
What is Standard Chartered’s price target for Ethena’s ENA token?
The bank set a year-end 2028 target of $2 for ENA, compared with about $0.28 cited in its report. CryptoSlate also reported intermediate forecasts of $0.42 at the end of 2026 and $1.10 in 2027.
How large does Standard Chartered expect USDe to become?
Standard Chartered forecasts USDe supply reaching $40 billion by the end of 2028. The stablecoin currently sits at about $4.9 billion, down from a peak above $10 billion, according to CryptoSlate.
What is Ethena’s fee switch and how does it fund ENA buybacks?
Ethena governance approved a fee switch in early September that directs 95% of qualifying net revenue to ENA buybacks once USDe supply crosses specified milestones, starting at $7.5 billion. Ethena estimates $375 million in annual buybacks at $25 billion in supply, assuming a 6% gross protocol yield and a 25% net revenue take rate.
Which risks could prevent ENA from reaching $2?
USDe must first reverse its contraction, cross the $7.5 billion fee-switch threshold and reclaim its previous peak, and Ethena’s newer yield strategies must scale without materially compressing returns. Capturing more revenue for buybacks can also reduce what remains available to sUSDe holders.
Why does the note compare Ethena to Uniswap?
Standard Chartered uses Uniswap as an analog, noting that UNI’s annualized buyback rate has settled around 3% to 4% as its token price increased after its own fee switch, and applies a similar equilibrium to Ethena.
Standard Chartered’s projections are forecasts, not guarantees, and stablecoin and altcoin markets remain volatile. This article is not financial advice.
Sources: Cointelegraph, CryptoSlate
