The Ethena Crypto Buyback Math Puts the $2 ENA Target to the Test

Standard Chartered forecasts the Ethena crypto USDe supply will grow eightfold to $40Bn by the end of 2028 and has initiated coverage of ENA with a $2 target, roughly seven times the $0.28 reference price in its report.

The forecast puts a valuation question ahead of the price target: can diversified yield and buybacks scale quickly enough to support that repricing?

The bank expects USDe to slightly outpace the broader stablecoin market, while its forecasts imply ENA will outperform Bitcoin and Ether through 2028.

Those are projections, not assured returns; their connection depends on the protocol expanding revenue and directing enough of it toward token demand.

How Does Diversified Yield Act as the Foundation For the $2 Buyback Thesis?

Ethena's original yield engine was based on the crypto basis trade, but as returns have declined, it has expanded into DeFi, institutional lending, and basis trades tied to equities and commodities. Standard Chartered notes these sources currently yield a blended rate of 5.2%.

This shift increases the asset base for generating yield but doesn't guarantee revenue independence from market conditions. Standard Chartered predicts the tokenized-asset market will grow from $350Bn to $4 trillion by 2028, but Ethena must compete for this growth to turn it into consistent revenue.