According to CoinDesk, investment firm VanEck has projected that Solana’s cryptocurrency, SOL, could reach a value of $ 520 by the end of 2025. This prediction is based on anticipated growth in demand for smart contract platforms (SCPs) and an increase in the M2 money supply in the coming months. The M2 money supply, which includes cash, checking accounts, and easily convertible near-money such as savings accounts and money market funds, is a key indicator of the amount of money circulating in the U.S. economy. It often influences the cryptocurrency market. VanEck predicts that the M2 money supply will increase from the current $ 21.5 trillion to $ 22.3 trillion by 2025. When central banks increase M2 through measures such as interest rate cuts or quantitative easing, it results in more liquidity in the economy, encouraging investment in risky assets such as cryptocurrencies.
The SCP market, where platforms such as Solana operate, is expected to grow significantly. These platforms facilitate the creation and execution of smart contracts. VanEck estimates that the SCP market could grow by 43% to reach $$ 1.1 trillion by the end of 2025. Solana currently holds about 15% of this market, but VanEck anticipates its share to grow to 22% by the end of 2025. The firm attributes this growth to the dominance of Solana developers and its increasing share of decentralized exchange (DEX) volume, revenue, and active users. Using an autoregressive (AR) forecasting model, which analyzes past data to predict future values, VanEck estimates that Solana’s market cap will reach approximately $$ 250 billion, implying a SOL price of $$ 520 based on approximately 486 million floating tokens.
In addition to these projections, VanEck is among several U.S. companies that have filed for a Solana ETF in 2024.
