Standard Chartered, the global banking giant, has initiated coverage on Ethena (ENA), the native token of the Ethereum-based stablecoin protocol, with a strikingly bullish forecast. Its digital assets research team, led by Global Head Geoff Kendrick, predicts a massive price surge for ENA, anticipating a seven-fold increase by the end of 2028.
The bank’s report, published on Wednesday, September 30, 2026, outlined aggressive price targets for ENA, positioning it to potentially outperform both Bitcoin (BTC) and Ethereum (ETH) over the same period. This optimism stems primarily from Ethena’s newly implemented token buyback program and the projected expansion of its USDe stablecoin.
Standard Chartered’s bold ENA price forecast
Standard Chartered’s projections for Ethena’s ENA token are notably ambitious, painting a picture of significant growth in the coming years. The bank forecasts ENA to reach $0.42 by the end of 2026, climb to $1.10 by the close of 2027, and ultimately hit $2.00 by the end of 2028.
This long-term target of $2.00 implies a roughly 700% upside from current levels, based on a reference price of $0.28 used in the report.
For context, the ENA token was trading around $0.2739 on September 30, 2026, marking a 7.46% increase over 24 hours, though its price had seen various fluctuations, including being up over 5% on some reports and down 3.3% according to CoinGecko data for the preceding 24-hour period.
In comparison, Standard Chartered’s end-2028 price targets for other major cryptocurrencies are $300,000 for Bitcoin and $18,000 for Ethereum. While these represent substantial gains—over 250% for Bitcoin and 559% for Ethereum—Ethena’s projected 700% surge suggests a belief that ENA could offer superior returns in the digital asset market.
Buyback program fuels Ethena (ENA) token optimism
A major driver behind the bank’s bullish cryptocurrency valuations for ENA is the protocol’s recently approved buyback program. Ethena token holders voted in September 2026 to implement a fee switch, directing 95% of the protocol’s net revenue towards open-market purchases of ENA.
This mechanism is set to activate once the supply of Ethena’s USDe stablecoin reaches $7.5 billion. Further thresholds are in place to progressively increase the buyback share: 10% of revenue once USDe hits $10 billion, 15% at $15 billion, and 20% when USDe reaches $20 billion.
The report highlights the potential impact of these buybacks. If USDe achieves the projected $40 billion supply by 2028 and ENA’s price remains constant, the annual buybacks would account for approximately 23% of the token’s circulating market value. Standard Chartered views this level as “far too high” to be sustainable without a corresponding price increase for ENA.
USDe: Ethena’s synthetic dollar innovation
Ethena’s USDe is a synthetic dollar stablecoin that forms the backbone of the protocol’s unique value proposition. Unlike traditional stablecoins backed by fiat reserves, USDe employs a “delta-neutral” hedging strategy.
This involves backing USDe with staked Ethereum (ETH) and simultaneously taking short positions in ETH perpetual futures contracts on various derivatives exchanges. This innovative approach aims to insulate USDe from the volatility of its underlying ETH collateral, maintaining its peg to the US dollar.
Currently, the supply of USDe stands at $4.9 billion, making Ethena the fourth-largest stablecoin issuer, trailing only Tether (USDT), Circle (CRCL), and Sky. Standard Chartered anticipates a dramatic increase in USDe’s supply, projecting it to reach $40 billion by the end of 2028, a testament to the growing interest in DeFi protocols and yield-bearing assets.
The yield generated by USDe comes from two primary sources: staking rewards from the collateralized ETH and funding rates from the short perpetual futures positions. This yield is then passed on to users, particularly those who stake USDe to receive sUSDe, an offering Ethena labels as an “Internet Bond.”
Broader stablecoin and RWA market expansion
Ethena’s trajectory is closely tied to the broader growth within the stablecoin market and the emerging sector of tokenized Real-World Assets (RWA). Standard Chartered predicts the total stablecoin market will swell to $2 trillion by the end of 2028, from its current significant valuation.
Yield-bearing stablecoins, which currently represent about 5% of the total stablecoin market, are expected to capture a larger share. This shift indicates a growing appetite among investors for stable assets that also offer returns, a niche Ethena’s USDe is specifically designed to fill. Its expansion beyond traditional crypto funding into institutional credit and tokenized equities further solidifies its position.
The tokenized RWA market is also poised for exponential growth, with projections seeing it surge from approximately $40 billion to a staggering $2 trillion by the end of 2028. Ethena, with its blend of perpetual contracts, tokenization, and stablecoin offerings, sits strategically at the nexus of these rapidly expanding segments of the digital economy.
Ethena benchmarks against Uniswap’s success
Standard Chartered’s analysis draws parallels with other successful DeFi protocols, notably citing Uniswap (UNI) as a benchmark for its assessment. Uniswap implemented its own fee switch in December 2025, which redirected protocol revenue to its token holders.
Following this activation, Uniswap’s annual buyback rate stabilized at around 3% to 4%. Crucially, the price of UNI roughly tripled after Standard Chartered began covering it in June 2026, demonstrating the potent effect a well-structured fee mechanism can have on token valuation.
This precedent from Uniswap offers a tangible example of how a revenue-sharing model can significantly boost a token’s market performance. The comparison reinforces the bank’s confidence in Ethena’s potential, given its even more aggressive 95% revenue allocation to buybacks. Investors are closely watching how the ENA token performs in this evolving crypto market rally.
Market reaction and future outlook for ENA
The market has already shown signs of reacting to Ethena’s developments and the broader interest in its synthetic dollar model. While current ENA prices fluctuate, its market value stands at about $2.5 billion, ranking it 43rd among cryptocurrencies. This indicates a solid and rapidly growing presence in the digital asset space.
The positive outlook from a traditional financial institution like Standard Chartered could lend significant credibility and attract more institutional investors to Ethena. Such endorsements are vital for the continued mainstream adoption of DeFi innovations, particularly those offering stablecoin solutions.
Ethena’s strategic focus on capital efficiency, combined with its robust yield generation and a mechanism for direct value accrual to token holders through buybacks, positions it uniquely. The coming years will be crucial in determining if the ENA token can indeed fulfill the aggressive growth projections set forth by Standard Chartered.