Standard Chartered sees Ethena’s USDe reaching $40B, ENA hitting $2
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Standard Chartered, a British multinational bank, projects Ethena’s USDe stablecoin supply will grow eightfold to $40 billion by the end of 2028, driven by expansion into non-crypto yield sources. The bank initiated coverage of Ethena’s ENA token with a 2028 price target of $2, about seven times its current price of $0.28. Standard Chartered expects USDe to slightly outpace overall stablecoin market growth and forecasts ENA to outperform Bitcoin and Ether through 2028.
Why it matters
This development could signal significant growth for Ethena’s stablecoin and token, with potential impacts on stablecoin market dynamics and token buyback mechanisms. Standard Chartered highlights that USDe’s growth could fund substantial ENA buybacks, influencing ENA’s token valuation. The source does not explicitly elaborate on broader market or user impact beyond these aspects.
Key context
Ethena is diversifying its yield sources beyond traditional crypto basis trades into DeFi, institutional lending, real-world assets, and equities/commodities basis trades, currently generating a blended yield of 5.2%. A fee switch approved by Ethena governance directs 95% of net revenue toward ENA buybacks once USDe hits certain supply milestones, linking USDe growth to ENA’s market mechanics. Tokenized asset markets are expected to expand from $350 billion today to $4 trillion by 2028, providing a larger asset pool for yield generation.
Key numbers and entities
Standard Chartered forecasts USDe supply reaching $40 billion, ENA token price at $2 by end of 2028, Bitcoin at $300,000, and Ether at $18,000. Current ENA price is about $0.27 with a $2.65 billion market capitalization. Ethena estimates annual ENA buybacks of $375 million at $25 billion USDe supply, assuming a 6% gross protocol yield and 25% net revenue take.
What remains unclear
The source does not clarify the exact risks or challenges Ethena might face in achieving these projections. Details on how expanded yield sources will perform in different market conditions or regulatory impacts are not provided. The broader implications for users or the stablecoin ecosystem beyond financial metrics remain unspecified.