$SOL **Solana (SOL) in 2025: Between Institutional Optimism and Market Volatility**

### **Bullish Outlook: $520 Target According to VanEck**

Asset manager VanEck projects that **SOL could reach $520** by the end of 2025, driven by:

- A **43%** growth in the smart contract market (up to $1.1 trillion).

- Increased adoption in DeFi, with a projected market share rise from **15% to 22%**.

- Technical improvements like **Firedancer**, which reinforce network stability after years of interruptions.

### **Current Reality: 29% Drop and Challenges**

Despite the optimism, SOL has faced a **29% decline** in 2025 due to:

- Capital outflows of **$485 million** towards Ethereum and other chains, in search of "safer" assets.

- Liquidity diversion towards *memecoins* like the TRUMP token, which absorbed investor flows.

- Recent scams in Solana-based projects (e.g., $107 million rug pull on the Libra token).

### **Recent Resilience: 8% Recovery**

In May, SOL showed signs of recovery:

- It rose by **8%** from April lows ($140 to $152), with trading volume increasing by **35%**.

- Key support at **$150**, backed by institutional interest.

- Possible short-term target: **$155** if it maintains momentum.

### **Key Factors to Monitor**

1. **Institutional Adoption**: Inclusion in the *U.S. Digital Asset Reserve* alongside Cardano and XRP.

2. **Technological Competition**: Advantage in speed (65,000 TPS) and low fees compared to Ethereum.

3. **Regulatory Risks**: Dependence on the crypto policy of the Trump administration.