VanEck predicted SOL will reach $520 by the end of the year, as the valuation of Solana’s share of the smart contract platform is expected to increase to 22%.
According to VanEck, an asset management firm, Solana (SOL) is expected to achieve a price target of $520 by the end of the year. The asset manager stated that Solana’s price projection is contingent upon its prospective year-end market share within the Smart Contract Platform (SCP) world. The M2 Money Supply was used to estimate the projected price.
“The VanEck Bull Case for Solana”
Matthew Sigel, Head of Digital Assets Research, and Patrick Bush, Crypto Research Analyst, stated on X that the M2 Money supply is expected to influence the development of the Solana price. The researchers’ forecast is predicated on the robust correlation between the development of the M2 money supply and the crypto market capitalization.
VanEck executives anticipated that the M2 would reach $22.3 trillion by the conclusion of 2025. This objective is predicated on the annualized growth rate of 3.2% sustained since the nadir in October 2023. The VanEck researchers predicted that the SCP market value will increase by 43% to $1.1 trillion by the end of 2025 through regression analysis.
The smart contract platform valuation is currently held by Solana at 15%, according to VanEck. It is expected to increase to 22% by the end of the year.
“This projection is supported by Solana’s developer dominance, increasing market share in DEX volumes, revenues, and active users. Using an autoregressive (AR) forecast model, we estimate Solana’s market cap will reach ~$250B, implying a SOL price of $520 based on ~486M floating tokens,” the researchers wrote.
Growth Catalysts for Solana
Solana is a protocol with a functional and expanding ecosystem, as evidenced by the VanEck projection. Pump Fun, a platform recognized for its memecoin revolution, has assisted in redirecting its focus to growth.
Today, Solana is home to several prominent memecoins, including TRUMP and MELANIA, which have achieved high valuations recently, attracting new mainstream users. The ecosystem’s revenue from ecosystem apps increased by 213% in Q4 2024, reaching $840 million during the adoption phase.
Messari’s report indicates that this expansion pertains to the memecoin revolution. Furthermore, the Decentralized Finance (DeFi) on Solana is exceedingly resilient. According to DeFiLlama data, the DeFi Total Value Locked (TVL) is $19.54 billion.
The SOL adoption sources have put the coin in the limelight for further price rallies.
SOL ETF and Current Price Outlook
A SOL ETF will likely be approved this year, given the pro-crypto administration in the United States.
It is essential to mention that VanEck is also competing to obtain sanctions for these products. The 19b-4 application for the Solana ETF of Cboe BZX and those of Canary Capital, Bitwise, and 21Shares was recently resubmitted. This product could attract additional institutional funds to the Solana ecosystem if approved.
Solana’s price is currently experiencing a decline as a result of the BTC market valuation falling below $98,000 at the time of writing. The cost of SOL has decreased by 4.6% in the past 24 hours, with the stock currently trading at $190.04. The coin fluctuated between a low of $189.30 and a high of $203.88 to reach its present value.
Proponents contend that it is feasible for SOL to increase by at least 170% from its current price for the VanEck prediction to be realized.
