VanEck’s Price Prediction for Solana

U.S. investment manager VanEck has forecasted that Solana’s price could reach $520 by the end of 2025. According to their autoregressive (AR) forecast model, they estimate Solana’s market cap will reach approximately $250 billion, implying a SOL price of $520 based on around 486 million floating tokens. This information was shared in a post on the social media platform X.

Currently, Solana is trading at $195.5, having fallen 3.5% in the past 24 hours. A target of $520 would mean an increase of 165% this year. Over the last year, Solana has risen by 102% and is the fifth largest cryptocurrency with a market cap of $94.1 billion.

VanEck’s valuation of Solana (SOL) is based on its projected year-end market share within the smart contract platform (SCP) market. Their market cap forecast is derived from U.S. M2 money supply growth, which historically correlates with crypto market capitalization.

VanEck analysts have a history of making ambitious price predictions. In 2022, senior analyst Patrick Bush predicted that Cosmos’s native token ATOM could reach $1400 by the end of 2030, which was later adjusted to $140. ATOM currently trades at $4.5, down over 55% since the revised report.

The firm projects that U.S. M2 will hit $22.3 trillion by year-end with a 3.2% annualized growth rate. The smart contract platform market is expected to expand 43% to an all-time high of $1.1 trillion, up from $770 billion today. Solana’s share of the SCP market capitalization is predicted to grow from 15% to 22%.

VanEck points to Solana’s dominance in development, growing market share in DEX volumes, revenues, and active users as support for this projection. The Solana blockchain has experienced notable growth over the past year, partly due to the popularity of Solana-based memecoins. At its peak in November, the network had over 135 million active wallet addresses according to data from The Block.

In a follow-up post, VanEck acknowledged their positions in Solana, clarifying that their price prediction is not a recommendation to buy or sell the cryptocurrency. They have also applied to the Securities and Exchange Commission (SEC) to launch a spot exchange-traded fund (ETF) based on Solana. While the SEC has not formally acknowledged any filings for spot Solana ETFs, they issued a public notice soliciting comments on Grayscale’s application for a Solana exchange-traded product.