Ethereum-Based Stablecoin Issuer ENA Could Surge 600%: Standard Chartered

Standard Chartered initiated coverage on a stablecoin-linked token Wednesday, expecting it to outpace both Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) through 2028.

The Token Standard Chartered Is Betting On

Standard Chartered wrote in a September 30 research report that Ethena’s ENA (CRYPTO: ENA) token carries a $2 price target for end-2028, implying roughly 614% upside from the report’s reference price of $0.28. 

The bank ranks Ethena as the fourth-largest stablecoin issuer behind Tether (CRYPTO: USDT), Circle (NYSE:CRCL), and Sky, and notes its USDe stablecoin became the fastest to reach a $10 billion market cap.

Yield-bearing stablecoins currently make up about 5% of the total stablecoin market, and Standard Chartered expects that share to grow as users chase returns alongside stablecoin utility. 

The bank projects USDe’s supply could reach $40 billion by the end of 2028, up from initial reliance on the crypto basis trade, now expanded into real-world assets and equity perpetual futures strategies.

How the Buyback Program Fits In

Ethena’s buyback-and-burn program directs 95% of net revenue toward purchasing and burning ENA tokens. 

Standard Chartered argues a larger USDe supply generates more revenue, which funds larger buybacks, tightening ENA’s supply while demand grows alongside it.