VanEck Forecast: Solana Price Could Exceed $500 by 2025

by Giorgi Kostiuk

2 years ago

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.

We value Solana based on its projected year-end market share within the smart contract platform market. Our forecast is derived from US M2 money supply growth, which has historically shown a strong correlation with crypto market capitalization.Matthew Sigel and Patrick Bush

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.

Currently, Solana holds 15% of the smart contract platform 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.Matthew Sigel and Patrick Bush

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.

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