U.S. investment manager VanEck has forecasted that Solana (SOL) could reach $520 by the end of 2025, representing a 165% increase from its current price.
In a post on X (formerly Twitter) on Thursday, VanEck stated:
“Using an autoregressive (AR) forecast model, we estimate Solana’s market cap will reach ~$250B, implying a SOL price of $520 based on ~486M floating tokens.”
Solana’s Current Market Position
- Current Price: $195.5 (-3.5% in the past 24 hours)
- Market Capitalization: $94.1 billion
- 12-Month Performance: Up 102%
- Rank: 5th largest cryptocurrency
VanEck’s Forecast Model
VanEck’s price prediction is based on Solana’s projected market share within the smart contract platform (SCP) sector.
The firm estimates that the SCP market cap will grow from $770 billion to $1.1 trillion by the end of the year. Solana’s share of this market is expected to increase from 15% to 22%, driven by its developer activity, growing decentralized exchange (DEX) volumes, and rising revenues.
The forecast also considers the expansion of the U.S. M2 money supply, which measures cash and liquid assets in the economy.
VanEck projects M2 to reach $22.3 trillion by year-end, with crypto market capitalization historically showing strong correlation to this metric.
Our Solana Price Target by the End of 2025 is $520
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…
— VanEck (@vaneck_us) February 6, 2025
Solana’s Market Position and Growth
Solana has experienced significant growth over the past year, particularly in memecoin speculation and DeFi activity.
At its peak in November, the network saw over 135 million active wallet addresses. The blockchain has also gained dominance in AI token integration and trading volumes, further strengthening its position in the market.
VanEck has applied for a spot Solana ETF with the U.S. Securities and Exchange Commission (SEC), marking another step toward institutional adoption.
While the SEC had previously refused to acknowledge recent filing attempts for Solana ETFs, it has now issued a public notice inviting comments on Grayscale’s application for a Solana-based exchange-traded product.
UPDATE: SEC just acknowledged the @Grayscale Solana 19b-4. This is actually newsworthy because the SEC had refused to do this in recent filing attempts for SOL pic.twitter.com/m2D88GKG5i
— James Seyffart (@JSeyff) February 6, 2025
