Thomas Daniels
According to asset management company VanEck, the price of Solana (SOL) may more than double to $520 by the end of 2025. According to the company’s most recent projection, the growth of the U.S. M2 money supply and Solana’s growing market dominance in the smart contract platform (SCP) arena are responsible for this possible spike.
In a recent post on X (formerly Twitter), VanEck’s head of digital assets research, Matthew Sigel, and crypto research analyst, Patrick Bush, offered their perspectives. In their forecast, the researchers highlighted the significant historical relationship between the rise of the M2 money supply and the market capitalization of cryptocurrencies.
Dynamics of the Market Encouragement of Solana’s Development
According to VanEck, the U.S. M2 money supply will grow at a yearly rate of 3.2% to reach $22.3 trillion by the end of 2025. Based on regression analysis, the company predicts that the market capitalization of smart contract platforms will reach $1.1 trillion, a 43% increase from the current $770 billion, and surpass its peak of $989 billion in 2021.
The foundation for Solana’s possible price increase is laid by this wider SCP market growth. By the end of 2025, Solana’s market capitalization share of SCP is expected to increase from 15% to 22%, according to VanEck analysts. Solana’s developer domination, growing market share in decentralized exchange (DEX) volumes, revenue growth, and an increasing number of active users all support this prediction.
The Market Cap and Price Forecast for Solana
According to VanEck’s autoregressive forecast model, Solana’s market value is expected to be around $250 billion. This would suggest a SOL price of $520 given that there are 486 million tokens in circulation for Solana.
As of this writing, Solana is trading at about $189, down 5% over the last day and 21% over the previous week. On January 19, 2025, SOL reached a new all-time high of $294, yet it is still up 98% year over year.
In conclusion
VanEck’s optimistic assessment of Solana highlights the platform’s expanding clout in the smart contract space. SOL may witness a large price increase and rank among the top assets in the cryptocurrency market by 2025 if the anticipated market trends come to pass.
