VanEck predicts Solana’s SOL could soar to $520 by the close of 2025, driven by the rising demand for smart contract platforms (SCP) and an increase in the M2 money supply.
M2 money supply is a key metric that tracks the amount of money circulating within the U.S. economy, including cash, checking deposits, and easily accessible savings. VanEck expects M2 to grow from its current level of $21.5 trillion to $22.3 trillion by 2025. As central banks expand the money supply through measures like lower interest rates and quantitative easing, more liquidity is pumped into the economy, which typically boosts risk asset investments, including cryptocurrencies.
Additionally, the smart contract platform market, where Solana is a significant player, is projected to grow by 43%, reaching $1.1 trillion by the end of 2025. Currently, Solana captures around 15% of the SCP market, but VanEck forecasts its market share to increase to 22% by year-end.
“We forecast its share to rise to 22% by EOY 2025,” VanEck stated in a recent report. “This projection is supported by Solana’s dominance among developers, growing market share in decentralized exchange (DEX) volumes, and a surge in active users.”
Using an autoregressive (AR) forecast model, which analyzes past data to predict future trends, VanEck estimates that Solana’s market cap could reach approximately $250 billion, equating to a SOL price of $520, assuming around 486 million circulating tokens.
In related news, VanEck, alongside several other U.S. firms, filed for a Solana ETF in 2024. The U.S. Securities and Exchange Commission (SEC) had previously rejected ETF applications tracking SOL. However, on Thursday, the SEC acknowledged Grayscale’s Solana ETF filing, setting a deadline of October for the SEC to approve or deny the application.
