According to a new forecast by asset management firm VanEck, Solana (SOL), one of the most popular cryptos at this time, may hit $520 by the end of 2025. The firm believes that Solana’s price will rise, as it becomes further dominant in the market and the U.S. M2 money supply grows.
According to Matthew Sigel and Patrick Bush, Solana is becoming a more important player in the smart contract platform (SCP) market. Solana currently takes up around 15 percent of that market, but VanEck says it will grow to 22 percent by the end of 2025. This is partly because of the increase in M2 money supply from $17.6 trillion to $22.3 trillion and expected growth of the smart contract platform market from $770 billion to $1.1 trillion.
In order to estimate the total market value of Solana, the analysts used an autoregressive forecast model, which estimated that its total market value could reach $250 billion. Since there are about 486 million Solana tokens available, that would equate to a price of roughly $520 for each SOL.
Solana is currently priced at around $190, and so would need to rise over 170% to meet Van Eck’s prediction. Despite recent price drops, SOL has increased 98% over the past year with even reaching an all time high of $294 in January 2025.
Solana’s increasing decentralized exchange (DEX) trading volume, growing number of active users, and its dedication to growing its strong developer community help lift its rapid growth. Additionally, there is speculation that both a Solana ETF (exchange traded fund) will be approved in the U.S. which could attract more investors.
If VanEck is correct, Solana could end up becoming one of the biggest cryptocurrencies in the near future.
Also read: BONK Set to Exit as Solana (SOL) Whale Weighs in on New Presale with Big Expectations
