According to analysts at the asset management firm VanEck, Solana (SOL), a rival of Ethereum (ETH), could potentially reach $520 by the end of 2025. At the time of writing, SOL is trading at $191.43, which would mean an increase of over 171%.
VanEck crypto researchers Matthew Sigel and Patrick Bush base their prediction on Solana’s projected market share within the smart contract platform (SCP) market by the end of the year. They also consider the growth of M2 money supply, which has shown a correlation to the crypto market cap. M2 measures cash, checking accounts, and easily convertible deposits.
Sigel and Bush explain, “We project M2 to reach $22.3 trillion by the end of 2025, maintaining its 3.2% annualized growth rate since October 2023. Using regression analysis, we estimate that the total SCP market capitalization will grow by 43% to $1.1 trillion by the end of 2025, surpassing its peak of $989 billion in 2021. Historical data shows a strong correlation between M2 and SCP market cap, with a 12-month moving average R² of 0.36 and a t-statistic of 5.7 (p < 0.0001).Currently, Solana holds 15% of the SCP market cap, but we forecast its share to increase to 22% by the end of 2025. This projection is supported by Solana's dominance among developers, as well as its growing market share in DEX volumes, revenues, and active users. Using an autoregressive (AR) forecast model, we estimate that Solana's market cap will reach approximately $250 billion, implying a SOL price of $520 based on around 486 million floating tokens."Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxCheck Price ActionFollow us on X, Facebook, and TelegramSurf The Daily Hodl MixGenerated Image: Midjourney
