Solana price is expected to hit $520 by the end of 2025, according to VanEck

Solana price is expected to hit $520 by the end of 2025, according to VanEck

VanEck, a prominent asset management firm, has made a bold prediction for Solana’s future price, forecasting that the altcoin could more than double to reach $520 by the end of 2025. This prediction is based on the platform’s market share in the smart contract platform (SCP) space and the broader economic trend of U.S. M2 money supply growth.

According to VanEck’s analysts, including Matthew Sigel, the head of digital assets research, and Patrick Bush, a crypto research analyst, the projection considers Solana’s year-end market share within the smart contract platform market and the expected growth of U.S. M2. They highlighted a strong historical correlation between the growth of M2 money supply and the overall crypto market capitalization.

VanEck expects the M2 money supply to grow to $22.3 trillion by the end of 2025, at an annualized growth rate of 3.2%. Based on this, the total smart contract platform market cap is projected to reach $1.1 trillion by 2025, a 43% increase from its current value of about $770 billion. This would mark a significant rise and surpass the market peak of $989 billion seen in 2021.

For Solana, this projected increase in the SCP market cap would likely boost its value. Currently, Solana holds 15% of the SCP market cap, but VanEck forecasts its share will rise to 22% by the end of 2025, driven by the platform’s growing dominance in terms of developer activity, DEX volumes, revenues, and active users.

Using an autoregressive forecast model, VanEck estimates that Solana’s market cap could soar to around $250 billion by the end of 2025. With a floating supply of 486 million tokens, this would result in a Solana (SOL) price of $520.

At the time of the prediction, Solana was trading at approximately $189, down about 5% in the past 24 hours and 21% over the past week. However, Solana has gained nearly 98% over the past year, even reaching a new all-time high of over $294 in January 2025.

This prediction reflects a strong belief in Solana’s continued growth, especially with its increasing market share and ongoing developments in the decentralized finance (DeFi) ecosystem. The forecast also highlights the significant impact of broader macroeconomic factors, such as the U.S. M2 growth, on the valuation of major cryptocurrencies like Solana.

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