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.
Solana’s Current Market Position
Currently, Solana is priced at $195.5, down 3.5% over the past 24 hours. Its market capitalization stands at $94.1 billion, and over the past 12 months, the cryptocurrency has risen by 102%. Solana ranks as the 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 market share is expected to increase from 15% to 22%, driven by developer activity, increasing decentralized exchange (DEX) volumes, and rising revenues. The forecast also considers the expansion of the U.S. M2 money supply, which historically shows a strong correlation with the overall crypto market capitalization.
Solana’s Market Growth and Position
Solana has seen significant growth over the past year, notably in memecoin speculation and DeFi activity. In November, the network peaked with over 135 million active wallet addresses. The blockchain has also strengthened its market position through AI token integration and increased trading volumes. VanEck has applied for a spot Solana ETF with the U.S. Securities and Exchange Commission (SEC), marking another step towards 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.
VanEck's prediction demonstrates confidence in Solana's potential growth in the coming years due to its increasing market share in the smart contract sector and rising institutional interest.
