Solana's $520 Prediction: VanEck Sees Bright Future Amid Volatility

VanEck, a prominent asset management firm, has predicted that Solana (SOL) could reach $520 by the end of 2025. This forecast comes amidst significant volatility in the crypto market, with SOL briefly dipping below the $200 mark.

In a recent analysis, VanEck expressed confidence in Solana's future prospects. The asset manager based its prediction on Solana's projected year-end market share within the Smart Contract Platform (SCP) market. VanEck's SCP market value forecast is derived from the increase in the US M2 money supply, which has a strong historical link with crypto market capitalization. M2 measures the US money supply, including cash, bank deposits, and easily convertible near-money.

Using an autoregressive (AR) forecast model, VanEck anticipates Solana's market cap will reach approximately $250 billion by the end of 2025. This prediction implies SOL could hit $520 per coin, based on about 486 million floating tokens. The AR model forecasts future behavior based on past behavior data.

Despite the current price decline, Solana is among the top cryptocurrencies showing signs of reversal. According to CoinMarketCap data, Solana is currently traded at $198, down slightly by 0.92% in the last 24 hours. 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.

While VanEck's previous crypto forecasts have been met with skepticism, the firm's latest prediction for Solana has sparked renewed interest in the cryptocurrency. As market sentiments improve, Solana investors are optimistic about the potential for inflows reaching $5 billion from ETF approval alone, further boosting investors' confidence in Solana.