Key Insights:
- Investment firm VanEck predicts Solana (SOL) will reach $520 by the end of 2025.
- They estimate Solana’s market cap may hit approximately $250 billion, translating to a SOL price of $520 based on around 486 million floating tokens.
VanEck sees skyrocketing prices for Solana’s SOL token as demand for smart contract platforms rises and the M2 money supply expands in the upcoming months.
M2 refers to the total amount of cash and liquid assets in the U.S. economy, which significantly affects cryptocurrency market behavior. Components of M2 include cash, checking deposits, and easily convertible near money like savings deposits.
VanEck forecasts the M2 money supply will increase to $22.3 trillion by 2025, rising from the current $21.5 trillion. When central banks increase M2, liquidity in the economy enlarges, stimulating investments in risk assets, including cryptocurrencies.
Furthermore, the market for smart contract platforms, where Solana operates, is expected to grow by 43% to approximately $1.1 trillion by the end of 2025, with Solana’s current market share at 15%, anticipated to grow to 22%.
“Using an autoregressive (AR) forecast model, we estimate Solana’s market cap will reach ~$250B, implying a SOL price of $520 based on ~486M floating tokens,” VanEck stated.
Moreover, various U.S. firms, including VanEck, have submitted applications for Solana-based ETFs in 2024. Previously, the SEC had rejected numerous similar proposals but recently acknowledged Grayscale’s filing for its SOL ETF, granting the commission a deadline until October to decide on the approval.
