VanEck’s Bold Prediction for Solana’s SOL Price
Investment firm VanEck has made a striking forecast regarding the future of Solana’s cryptocurrency, SOL, predicting that it could soar to $520 by the end of 2025. This optimistic outlook is largely attributed to the anticipated growth in demand for smart contract platforms (SCP) and an increase in the M2 money supply in the upcoming months.
The M2 money supply is a crucial economic indicator that measures the total amount of money circulating within the U.S. economy. It encompasses cash, checking deposits, and easily convertible near-money assets such as savings deposits and money market funds. A rise in the M2 money supply typically influences the cryptocurrency market, creating favorable conditions for investment.
According to VanEck, the M2 money supply is projected to expand from its current level of $21.5 trillion to approximately $22.3 trillion by 2025. This increase is likely to occur as central banks implement strategies such as lowering interest rates or engaging in quantitative easing, thereby injecting more liquidity into the economy. Such actions tend to encourage investments in riskier assets, including cryptocurrencies.
Simultaneously, the smart contract platform market—where Solana plays a significant role—is expected to witness substantial growth. VanEck estimates that this market could expand by 43%, reaching a value of $1.1 trillion by the end of 2025. Currently, Solana holds a market share of about 15%, but VanEck anticipates this figure will rise to 22% by the conclusion of 2025.
In their analysis, VanEck stated, “We forecast its share to rise to 22% by the end of the year 2025. This projection is reinforced by Solana’s dominance among developers, its growing market share in decentralized exchange (DEX) volumes, revenues, and a rising number of active users.”
Utilizing an autoregressive (AR) forecast model, which analyzes historical data to predict future trends, VanEck estimates that Solana’s market capitalization could reach approximately $250 billion. This projection implies a SOL price of around $520 based on an estimated 486 million floating tokens.
Moreover, VanEck is part of a growing number of U.S. firms that have filed for a Solana ETF in 2024. Previously, the U.S. Securities and Exchange Commission (SEC) had rejected multiple applications for ETFs that tracked SOL and instructed Cboe to withdraw its previously submitted 19b-4s for these ETFs. However, in a noteworthy shift in tone on Thursday, the SEC acknowledged a filing by Grayscale for its SOL ETF, which now obligates the commission to make a decision by October regarding the approval or denial of this application.
