Standard Chartered has initiated coverage of Ethena, setting formal price targets for its governance token, ENA. The bank projects the token will reach $0.42 by the end of 2026, $1.10 by the end of 2027, and $2.00 by the end of 2028. These estimates suggest a potential 7x upside from the reference price of $0.28.
The bank's forecast hinges on the performance of USDe, Ethena's synthetic dollar. Currently, the supply of USDe is approximately $4.9 billion, down from a peak of over $10 billion. The bank anticipates that the supply will grow to $40 billion by 2028, supported by an expansion into DeFi lending and real-world assets.
A key mechanism for the price growth is a fee switch that activates when USDe supply exceeds $7.5 billion. Once triggered, 95% of the protocol's net revenue will be directed toward ENA buybacks. Currently, the supply remains below this threshold, meaning the buyback mechanism is not yet active.
The protocol faces immediate market pressure, including a scheduled unlock of approximately 1.4 billion ENA tokens on October 5, 2026. Standard Chartered also noted risks regarding the maintenance of attractive yields as the USDe product scales, as returns may compress with increased capital inflow.
