Standard Chartered research indicates that Ethena (ENA) could significantly outperform both Bitcoin (BTC) and Ethereum (ETH) in terms of percentage returns by 2028. The bank’s projection hinges on Ethena’s ability to capture a massive share of the stablecoin market through its synthetic dollar, USDe, which generates yield via delta-neutral staking and basis trades. As the protocol scales throughout 2026, analysts expect ENA to benefit from increased revenue capture and token utility that traditionally outpaces the growth of established blue-chip assets.
A key component of this valuation model is the circulating supply of USDe, which acts as a barometer for the protocol's health. Currently, the USDe supply remains below the first major milestone required to trigger revenue-funded token purchases—a mechanism designed to buy back ENA from the open market, thereby increasing demand. Standard Chartered views the approach to this milestone as a critical indicator for investors looking to capitalize on the protocol's maturity phase heading into the late 2020s.
This bullish outlook comes amid a broader institutional shift in 2026 toward yield-bearing DeFi protocols. While Bitcoin remains the primary institutional hedge and Ethereum serves as the foundation for smart contracts, Ethena represents a specialized financial layer that converts market volatility into predictable yield. For US-focused investors, this distinction is crucial as the regulatory landscape for synthetic assets continues to evolve, potentially opening the door for even wider institutional integration of USDe into traditional finance products.
Market participants should closely monitor USDe’s market cap growth and the sustainability of the basis trade yield. If USDe supply hits its next designated billion-dollar milestone in late 2026, the resulting revenue-funded buybacks could provide the catalyst needed to validate Standard Chartered’s aggressive growth targets. However, readers should watch for fluctuations in funding rates, as a prolonged low-volatility environment could slow the path toward ENA's projected outperformance of Bitcoin and Ethereum.