In its latest forecast, VanEck suggests that Solana's price could reach $520 by the end of 2025. The prediction is based on market share analysis and the US M2 money supply.
VanEck Forecast for Solana
VanEck analysts claim that Solana's price could hit $520 by the end of 2025. The forecast considers the smart contract platform's market share and the US M2 money supply.
Forecast Factors
VanEck's forecast is based on the expected growth of the M2 money supply to $22.3 trillion by the end of the year, with an annualized growth rate of 3.2%. Using regression analysis, VanEck estimates that the total smart contract platform market capitalization will reach $1.1 trillion by 2025. Currently, this stands at about $770 billion, suggesting a 43% increase.
Current Market Situation
At the time of writing, Solana's price was hovering near $189, down nearly 5% in the past 24 hours and 21% over the past week. However, SOL has risen 98% in the past year and reached a new all-time high above $294 on January 19, 2025.
VanEck analysts are predicting substantial growth for Solana over the coming years, based on the historical correlation between money supply growth and cryptocurrency market capitalization.
