ENA Token Predicted to Surge 600% by 2028

Standard Chartered has initiated coverage on Ethena's ENA token, predicting it will surge 600% by the end of 2028. The bank set a $2 price target for ENA, which is currently trading at around $0.28.

Ethena ranks as the fourth-largest stablecoin issuer, behind Tether, Circle, and Sky. Its USDe stablecoin reached $10 billion in market cap quickly, and Standard Chartered expects this growth to continue.

The bank's research notes that yield-bearing stablecoins currently make up about 5% of the total stablecoin market but anticipates a significant increase as users seek returns alongside stablecoin utility. This could lead to a supply of $40 billion for USDe by the end of 2028, according to Standard Chartered.

Ethena's buyback-and-burn program directs 95% of net revenue towards purchasing and burning ENA tokens, which is expected to tighten the token's supply as demand grows. However, slower adoption of yield-bearing stablecoins and weaker-than-expected growth in tokenized real-world assets are listed as risks to Standard Chartered's forecast.