VanEck, a leading asset management firm, predicted that Solana (SOL) could skyrocket to $520 by the end of 2025. The firm gave the forecast amid huge volatility in the crypto market, which saw SOL dropping below the $200 mark.
VanECK’s Bold Solana Forecast
In a recent X post, VanEck expressed confidence in Solana’s future. The asset manager said its prediction is based on Solana’s projected year-end market share within the Smart Contract Platform (SCP) market.
The firm added that its SCP market value forecast is based on the increase in the US M2 money supply, which has a strong historical link with crypto market capitalization. Essentially, M2 measures the US money supply, which includes cash, bank deposits, and easily convertible near-money.
Our Solana Price Target by the End of 2025 is $520
We value Solana (SOL) based on its projected year-end market share within the smart contract platform (SCP) market. Our SCP market cap forecast is derived from U.S. M2 money supply growth, given its strong historical correlation…
— VanEck (@vaneck_us) February 6, 2025
Using an autoregressive (AR) forecast model, VanEck anticipates Solana’s market cap will reach approximately $250 billion. This prediction implies SOL will hit $520 per coin, based on about 486 million floating tokens. Notably, the AR model forecasts future behavior based on past behavior data.
How Solana is Reacting to the Current Market Downturn
According to CoinMarketCap data, Solana is currently traded at $198, down slightly by 0.92% in the last 24 hours. Despite the current price decline, SOL is among the top cryptocurrencies showing signs of reversal.
Solana’s 24-hour trading volume has increased by 19.24% to $4.3 billion. SOL is up 1.5% in the past month and rose 108.34% in the past year. A forecast of $520 implies SOL’s price will increase by over 167% this year. Solana is ranked the 5th-largest cryptocurrency by market capitalization, valued at $96.6 billion.
VanEck’s Previous Crypto Forecast
In the past, analysts at VanEck have made lofty and unrealistic price predictions. In 2022, VanEck senior analyst Patrick Bush anticipated that Cosmos’ native token ATOM would hit $1400 by the end of 2030.
In a subsequent update, the research revised the projection to $140. ATOM trades at $4.5, down more than 55% since the article’s release two years ago.
Amid the current market sentiments, Solana investors are increasingly anticipating the launch of an ETF. Analysts believe SOL could see inflows reaching $5 billion from the ETF approval alone. This rising inflow is expected to boost investors’ confidence in Solana further.
The post Solana to Hit $520 by End of 2025: VanEck Predicts appeared first on TheCoinrise.com.
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