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VanEck Suggests Solana Price Could Potentially Reach $520 by End of 2025 Amid Market Growth Expectations
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U.S. investment management firm VanEck has made headlines with its bold price forecast for Solana, predicting a potential surge to $520 by the close of 2025.
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This prediction hinges on an autoregressive forecast model, estimating Solana’s market cap to reach around $250 billion.
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According to VanEck, “Our SCP market cap forecast is derived from U.S. M2 money supply growth, given its strong historical correlation with crypto market capitalization.”
Explore VanEck’s ambitious forecast for Solana in 2025, analyzing market trends and potential growth driven by smart contract platforms and increasing demand.
VanEck’s Price Projection: Analyzing the Data Behind Solana’s Future
VanEck’s latest analysis on Solana (SOL) projects an astonishing rise in market value based on current economic indicators and cryptocurrency market trends. According to the firm’s research, the token could see its price escalate by 165% this year, culminating in a price of $520 by the end of 2025.
Currently trading at approximately $195.5, Solana has demonstrated significant resilience, having risen over 102% in the last year. This growth is attributed to Solana’s increasing market share within the smart contract platform (SCP) sector, where it is currently the fifth largest cryptocurrency with a market cap of $94.1 billion.
Understanding Market Metrics: The Role of M2 Money Supply in Crypto Valuations
VanEck forecasts the U.S. M2 money supply will reach an impressive $22.3 trillion this year, a trajectory that is closely linked to the growth of the cryptocurrency market. The firm anticipates an annualized growth rate of 3.2% in the M2 measure, which includes cash, savings, and near-money assets.
This growth in the money supply is expected to correlate with the expansion of the smart contract platform market, which VanEck estimates will rise by 43% to $1.1 trillion. As Solana’s market share grows from 15% to 22% within this ecosystem, it positions itself favorably within an increasingly competitive landscape.