ENA: STANDARD CHARTERED TARGETS USD2 BY END-2028
Standard Chartered forecasts ENA could reach USD2 by the end of 2028, with USDe growth as the main driver. The bank expects USDe supply to rise from about USD4.9 billion to USD40 billion, while the buyback mechanism could create meaningful demand for ENA.
My take: the thesis depends on one clear link: USDe must scale while maintaining attractive yields. Ethena is reducing its reliance on crypto basis trades by expanding into DeFi, institutional lending, RWAs and strategies linked to stocks and commodities. Standard Chartered estimates these newer yield sources currently generate about 5.2%. If this model supports sustainable USDe growth, higher revenue could provide more capacity for ENA buybacks.
The key detail is the fee switch, which allows 95% of net ecosystem revenue to be used for ENA buybacks once USDe reaches certain thresholds. Ethena estimates that at USD25 billion of USDe, annual buybacks could reach USD375 million. But this remains a scenario, not guaranteed cash flow.
I will watch USDe growth, actual yields and buyback size before reassessing ENA. If USDe expands while yields weaken, the valuation case becomes less convincing.
Do you think USDe can reach USD40 billion by 2028? If this logic makes sense, drop a follow for more market breakdowns.
Please do your own research carefully before making any transactions (DYOR). $ENA $AXS $ZRO #Colecolen
Standard Chartered forecasts ENA could reach USD2 by the end of 2028, with USDe growth as the main driver. The bank expects USDe supply to rise from about USD4.9 billion to USD40 billion, while the buyback mechanism could create meaningful demand for ENA.
My take: the thesis depends on one clear link: USDe must scale while maintaining attractive yields. Ethena is reducing its reliance on crypto basis trades by expanding into DeFi, institutional lending, RWAs and strategies linked to stocks and commodities. Standard Chartered estimates these newer yield sources currently generate about 5.2%. If this model supports sustainable USDe growth, higher revenue could provide more capacity for ENA buybacks.
The key detail is the fee switch, which allows 95% of net ecosystem revenue to be used for ENA buybacks once USDe reaches certain thresholds. Ethena estimates that at USD25 billion of USDe, annual buybacks could reach USD375 million. But this remains a scenario, not guaranteed cash flow.
I will watch USDe growth, actual yields and buyback size before reassessing ENA. If USDe expands while yields weaken, the valuation case becomes less convincing.
Do you think USDe can reach USD40 billion by 2028? If this logic makes sense, drop a follow for more market breakdowns.
Please do your own research carefully before making any transactions (DYOR). $ENA $AXS $ZRO #Colecolen
