Standard Chartered Sees 669% Upside in Ethena's ENA Token by End of 2028

Standard Chartered has set a price target of $2 for Ethena's ENA token by the end of 2028, predicting an increase of approximately 669% from its current price. This projection is based on the bank's analysis of the relationship between the growth of Ethena's stablecoin USDe and ENA buybacks.

The report cites Uniswap as a comparison, noting that UNI's annualized buyback rate has stabilized at around 3-4%, while its price has risen by approximately 3x since it was added to Standard Chartered's coverage in June. Ethena's revenue mechanism, which allocates 95% of net revenue from businesses operating under the brand to ENA buybacks, is expected to drive growth and eventually stabilize at a lower rate.

The bank considers slower-than-expected growth in yield-bearing stablecoins and weak growth in real-world assets brought onto the blockchain as main risks to its price forecast. Standard Chartered expects USDe supply to rise from $4.9 billion to approximately $40 billion by the end of 2028, a more than 8x increase.

Ethena's expansion into new areas, such as real-world assets and decentralized finance, is also expected to contribute to growth in its yield-bearing stablecoin.