VanEck: Solana Could Hit $520 in Late 2025

 
Rajpalsinh Parmar
Written By 
Rajpalsinh Parmar
 
Harsh Chauhan
Edited by 
Harsh Chauhan
February 6, 2025

On January February 6, VanEck, the prominent asset manager, shared a bullish outlook for the fifth largest cryptocurrency, Solana (SOL) in the latest post on X (formerly known as Twitter).

According to VanEck, Solana is expected to witness a major surge and expected to achieve the target of $520 by the end of 2025. The prediction is based on Solana’s anticipated market share within the smart contract (S) sector, which is closely linked to the growth of the U.S. M2 money supply. 

The asset manager estimates that M2 will reach $22.3 trillion by late 2025 with a 3.2% annual growth rate since its October 2023 low. Following this trajectory, the total S market capitalization is expected to rise 43% to approximately $1.1 trillion by suring its 2021 peak of $989 billion. 

“Historical data shows a strong correlation between M2 and S market cap, with a 12-month moving average R² of 0.36 and a t-statistic of 5.7 (p < 0.0001),” the post reads. 

VanEck Highlights Growth in Solana’s On-Chain Activity

Currently, SOL holds 15% of the S market capitalization, however, the analyst believes that this will increase to 22% by the end of 2025. The surge will mainly fueled by Solana’s developer dominance, increasing market share in DEX volumes, revenues, and active s. 

In the speculation, the VanEck team writes. “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.”

Solana blockchain is gradually heading towards completing its dream to become an ‘Ethereum killer’. In the last year Q4, the ecosystem experienced significant success with a 213% revenue boost to $840M, largely fueled by memecoin trades and a 150% increase in decentralized exchange (DEX) volume.

Also Read: Ethereum Set for a Parabolic Rise: Here’s What’s Fueling the Rally to $4,000!

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Rajpalsinh Parmar
Written by Rajpalsinh Parmar

Rajpalsinh is a crypto journalist with over three years of experience and is currently working with CryptoNewsZ. Throughout his journey, he has honed skills like content optimization and has developed expertise in blockchain platforms, crypto trading bots, and hackathon news and events. He has also written for TheCryptoTimes, where his ability to simplify complex crypto topics makes his articles accessible to a wide audience. ionate about the ever-evolving crypto space, he stays updated on industry trends to provide well-researched insights. Outside of work, gaming serves as his stress buster, helping him stay focused and refreshed for his next big story. He is always eager to explore new blockchain innovations and their potential impact on the global financial ecosystem.