VanEck has issued a forecast that predicts Solana's value will reach $520 by the end of 2025. The prediction is based on expected growth in the smart contract platform sector and Solana's increasing market share.
VanEck's Forecast for Solana
VanEck projects Solana's market share in the smart contract platform sector to increase from 15% to 22% by the end of 2025. Key factors contributing to this growth include developer dominance over the network, increasing market share in decentralized exchange volumes, and a rise in active users.
Valuation Methods and Assumptions
Using an autoregressive forecasting model, VanEck estimates Solana's total market cap could reach $250 billion, which implies a SOL price of $520 based on 486 million coins in circulation. The SCP market forecast is linked to the U.S. M2 money supply, projected to reach $22.3 trillion by 2025.
Economic Outlook and Implications
VanEck predicts the SCP market value will increase by 43% to reach $1.1 trillion by the end of 2025, surpassing its 2021 peak of $989 billion.
VanEck provides a bold forecast for Solana's price, based on anticipated market growth and financial indicators supporting such an optimistic scenario.
