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- Standard Chartered initiated coverage of Ethena’s ENA token with a $2 price target and a $40 billion USDe supply forecast for the end of 2028.
- Ethena token holders approved a fee-switch framework linking ENA buybacks to USDe supply thresholds starting at $7.5 billion.
- Standard Chartered warned that slower growth in yield-bearing stablecoins and tokenized real-world assets represents a key risk to its outlook.
Standard Chartered has initiated coverage of Ethena’s ENA token with a $2 price target for the end of 2028, while forecasting that USDe supply could reach $40 billion over the same period. The bank’s Sept. 30 research report also puts ENA at $0.42 by the end of 2026 and $1.10 by the end of 2027.
ENA traded around $0.26 when the report was published, making the $2 figure a long-term analyst forecast rather than a current valuation. USDe supply stood near $4.9 billion, meaning Standard Chartered expects the synthetic dollar to grow more than eightfold by the end of 2028.
USDe Growth Drives Standard Chartered Forecast
Standard Chartered expects Ethena to benefit as yield-bearing stablecoins gain a larger share of the wider stablecoin market. The bank also points to Ethena’s expansion beyond its original crypto basis-trading strategy into lending, tokenized assets and other sources of yield.
USDe previously grew above $15 billion before falling back below $5 billion in 2026. Standard Chartered’s forecast therefore assumes a substantial recovery and further expansion from current supply levels.
ENA Buybacks Support the $2 Target
Ethena token holders have approved a fee-switch framework that links ENA buybacks to USDe supply. The first buyback tier is triggered when the 14-day average USDe supply reaches $7.5 billion, with a larger share of protocol revenue allocated to purchases at higher supply levels.
Standard Chartered estimated that, under its USDe growth and revenue assumptions and with ENA near current prices, annualized buybacks could equal about 23% of ENA’s circulating market value. The bank argues that this level of modeled buyback demand would likely put upward pressure on ENA’s price.
“For these buybacks to be sustainable, the ENA token price will rise.”
Forecast Depends on Continued Adoption
Standard Chartered identified slower growth in yield-bearing stablecoins as a key risk to its outlook. Weaker expansion of tokenized real-world assets could also reduce the opportunity for Ethena to diversify its sources of yield.
The $40 billion USDe supply estimate and $2 ENA target remain Standard Chartered forecasts, not guaranteed outcomes. Both depend on Ethena expanding adoption and generating enough revenue to support the projected buyback economics.
