Ethena's USDe Supply Projected to Hit $40 Billion in 2028

Standard Chartered has initiated coverage of Ethena's ENA token and is forecasting USDe supply to grow eightfold to $40 billion by the end of 2028, driven by yield strategies beyond traditional crypto basis trades.

The bank also set a year-end 2028 price target for ENA at $2, significantly above the current token price. According to Standard Chartered's valuation model, this is tied to an Ethena governance fee switch that directs 95% of net revenue towards ENA buybacks once USDe reaches specified milestones.

Standard Chartered expects USDe's yield expansion by broadening sources of return beyond the crypto basis trade, including DeFi, institutional lending, real-world assets, and other basis strategies. This growth is expected to outpace overall stablecoin market growth slightly.