Standard Chartered has initiated research coverage of Ethena's ENA token, establishing a $2 price target for the end of 2028. At the time of the report, ENA was trading around $0.26.
The bank's outlook is grounded in two key trends: growing demand for yield-bearing stablecoins and the expanding tokenized-asset market across both decentralized and traditional finance.
Ethena's Market Position
Ethena currently ranks as the fourth-largest stablecoin issuer and the second-largest issuer of yield-bearing stablecoins. Its USDe stablecoin reached $10 billion in market capitalization within nine months of launch and has evolved to generate yield through multiple mechanisms, including crypto basis trades, real-world assets, DeFi lending, institutional lending, and equity and commodity basis trades.
Growth Projections
Standard Chartered forecasts that USDe's outstanding supply could reach $40 billion by 2028. The bank also projects potential USDe growth of approximately 8 times over the next two years as the convergence of DeFi and traditional finance accelerates.
Token Economics
Ethena operates a buyback-and-burn program that directs 95% of net revenue toward ENA purchases and burns. Standard Chartered expects this program to become increasingly significant if USDe supply reaches the projected $40 billion level.
Risks
The bank acknowledged potential headwinds to its outlook, including slower adoption of yield-bearing stablecoins and weaker growth in real-world assets.
