Standard Chartered Sees $2 Price Target for Ethena by 2028

Standard Chartered has initiated coverage of Ethena, setting a price target of $2 for the ENA token by the end of 2028. This projection implies an upside of 669% from current levels, where ENA trades at around $0.27.

The bank also projects that the circulating supply of USDe, the yield-bearing stablecoin issued by the protocol, will grow more than eightfold, from the current $4.9 billion to approximately $40 billion by end of 2028.

Standard Chartered notes that Ethena is broadening its yield sources backing USDe, as returns from the crypto basis trade have declined. The bank highlights real-world assets, DeFi protocols, institutional lending, liquid stablecoins, and basis trades tied to equities and commodities as new revenue-generating avenues.

The ENA buyback mechanism, approved with 100% of the protocol's votes, will be pivotal in Ethena's growth. Under this scheme, 95% of net revenues generated under the Ethena brand will be used to programmatically repurchase tokens.