Investment firm VanEck has predicted that Solana's SOL token will reach $520 by the end of 2025, citing the growth of the smart contract platform (SCP) market and an increase in the M2 money supply.
VanEck forecasts that the M2 money supply, a measure of the money circulating in the U.S. economy, will grow to $22.3 trillion by 2025 from the current $21.5 trillion. This expansion, driven by central bank policies like lowering interest rates or quantitative easing, typically leads to increased liquidity and encourages investments in risk assets, including cryptocurrencies.
The SCP market, where platforms like Solana operate, is also expected to grow significantly, reaching $1.1 trillion by the end of 2025, according to VanEck. Solana currently holds about 15% of this market, but VanEck expects this share to rise to 22% by the end of 2025, driven by its developer dominance, increasing market share in decentralized exchange (DEX) volumes, revenues, and active users.
Using an autoregressive (AR) forecast model, VanEck estimates Solana's market cap will reach ~$250 billion by 2025, implying a SOL price of $520 based on ~486 million floating tokens.
VanEck's prediction comes as the U.S. Securities and Exchange Commission (SEC) has shown a shift in its stance towards Solana ETFs. On Thursday, the SEC acknowledged a filing by Grayscale for its SOL ETF, meaning the commission now has until October to approve or deny the application.