VanEck has painted a bold picture for Solana’s future, predicting that the smart contract platform’s token, SOL (SOL-USD), could surge to $520 by the end of 2025. The firm attributes this potential price hike to both a growing M2 money supply and Solana’s increasing market dominance in the smart contract sector.
Maximize Your Portfolio with Data Driven Insights:
- Leverage the power of TipRanks' Smart Score, a data-driven tool to help you uncover top performing stocks and make informed investment decisions.
- Monitor your stock picks and compare them to top Wall Street Analysts' recommendations with Your Smart Portfolio
Solana’s Market Share Set to Expand
Currently holding around 15% of the smart contract platform (SCP) market, Solana is expected to increase its share to 22% by 2025, according to VanEck. They highlighted Solana’s “developer dominance” and its growing role in decentralized exchange (DEX) volumes and user engagement as key drivers. The SCP market itself is projected to reach $1.1 trillion, giving platforms like Solana ample room for growth.
Money Supply Growth Boosts Crypto Prospects
VanEck also predicts that the U.S. M2 money supply—cash, checking deposits, and near money—will rise to $22.3 trillion by 2025, up from $21.5 trillion today. This expansion typically fuels risk asset investments, including cryptocurrencies. VanEck’s forecast puts Solana’s market cap at roughly $250 billion based on an autoregressive (AR) model.
With the U.S. Securities and Exchange Commission (SEC) acknowledging Grayscale’s Solana ETF application, optimism around SOL is gaining steam. Could this be the beginning of a record-breaking run?
At the time of writing, Solana is sitting at $192.85.
