The price of Solana could more than double to hit $520 by the end of the year, asset manager VanEck has said in its latest forecast for the altcoin.
According to VanEck, Solana (SOL) has the potential to rise to $520 by the end of 2025. VanEck analysts say the projection takes into account Solana’s year-end market share in the smart contract platform space and U.S. M2 money supply.
“We value Solana (SOL) based on its projected year-end market share within the smart contract platform (SCP) market. Our SCP market cap forecast is derived from U.S. M2 money supply growth, given its strong historical correlation with crypto market capitalization,” noted VanEck’s head of digital assets research Matthew Sigel and crypto research analyst Patrick Bush.
They shared the prediction via a post on X.
Per the forecast, M2 will grow to $22.3 trillion by the end of the year, rising at an annualized growth rate of 3.2%. Through regression analysis, VanEck estimates the total smart contract platform market capitalization will hit $1.1 trillion by the end of 2025. Currently, this stands at about $770 billion, suggesting a 43% spike that will see the SCP surpass the 2021 peak of $989 billion.
So, what does this mean for SOL price in 2025?
VanEck says correlation between M2 and the market cap of SCP has historically been strong. If this is the case, a surge for Solana’s share of SCP market cap could drive the native token’s price higher.
“Currently, Solana holds 15% of SCP market cap, but we forecast its share to rise to 22% by EOY 2025. This projection is supported by Solana’s developer dominance, increasing market share in DEX volumes, revenues, and active users,” the analysts noted.
Going by the autoregressive forecast model, Sigel and Bush see Solana’s market cap soaring to approximately $250 billion. This would imply a SOL price of $520, with this based on the altcoin’s 486 million floating tokens.
At the time of writing, Solana price hovered near $189, down nearly 5% in the past 24 hours and -21% in the past week. However, SOL is up 98% in the past year and reached a new all-time high above $294 on January 19, 2025.
