VanEck has forecasted that Solana’s SOL token could soar to $520 by the end of 2025, driven by an expected increase in the M2 money supply and a rising demand for smart contract platforms (SCPs).
M2 money supply is an economic measure that includes cash, checking deposits, and highly liquid assets like money market funds and savings deposits. VanEck predicts that the M2 supply will grow from $21.5 trillion to $22.3 trillion by 2025. This influx of money into circulation is expected to boost liquidity and foster investments in higher-risk assets such as cryptocurrencies.
The smart contract platform (SCP) sector, which includes Solana, is expected to grow substantially as well. VanEck estimates the SCP market will expand by 43% to reach $1.1 trillion by 2025. Solana, which currently holds a 15% share of the market, is projected to increase its share to 22% by the end of 2025, thanks to its developer activity, growing decentralized exchange (DEX) volumes, and increasing user base.
“We expect Solana’s share of the SCP market to increase to 22% by the end of 2025,” VanEck said in its report. “This forecast is supported by Solana’s impressive developer presence, strong DEX growth, and active user engagement.”
VanEck applied an autoregressive (AR) forecast model to arrive at a market cap estimate of $250 billion for Solana, predicting a SOL price of $520, based on around 486 million circulating tokens.
In 2024, VanEck, along with other firms, filed for a Solana-based ETF. While the U.S. Securities and Exchange Commission (SEC) had previously rejected Solana ETF applications, the agency recently acknowledged Grayscale’s filing for an ETF tracking SOL, which means the SEC now has until October to make a decision.
