Solana Set to Surge to $520 by 2025, Outpacing XRP

Ripple's XRP price is unlikely to reach $32 in the current cycle, according to recent market analysis. However, a competitor to XRP, Solana (SOL), is expected to surge significantly in the coming years.

VanEck, a leading investment management firm, predicts that SOL could reach $520 by the end of 2025, with a market capitalization of $250 billion. This projection is based on Solana's strong developer influence, DEX trading volume share, revenue, and the continued growth of its active user base.

VanEck's valuation model ties Solana's expected Smart Contract Platform (SCP) market share to the growth of the U.S. M2 money supply. By the end of 2025, the M2 money supply is projected to reach $22.3 trillion, maintaining an annualized growth rate of 3.2% since October 2023. Regression analysis suggests that by the end of 2025, the total SCP market cap will grow by 43% to reach $1.1 trillion, surpassing the peak of $989 billion in 2021. Using an Autoregressive (AR) model, VanEck estimates that Solana's market cap could reach around $250 billion, implying a target price of $520 for SOL.

In contrast, Ripple's XRP has faced regulatory challenges and market volatility, which have impacted its price trajectory. While XRP has shown potential for growth, it is unlikely to reach $32 in the current cycle, given the competitive landscape and regulatory uncertainties.

The cryptocurrency market is dynamic and subject to various factors, including regulatory changes, technological advancements, and market sentiment. As such, investors should remain vigilant and monitor the market closely for potential opportunities and risks.