Solana's SOL Token: VanEck Predicts $520 by 2025

Solana's SOL Token Could Reach $520 by 2025, According to VanEck

Investment firm VanEck has predicted that Solana's SOL token could touch $520 by the end of 2025, driven by increasing demand for smart contract platforms (SCP) and a growing M2 money supply. The firm's forecast is based on an autoregressive (AR) model, which estimates Solana's market capitalization to reach approximately $250 billion, implying a SOL price of $520 based on around 486 million floating tokens.

VanEck's prediction comes as the M2 money supply, which measures the amount of money circulating in the U.S. economy, is expected to grow to $22.3 trillion by 2025 from the current $21.5 trillion. Central banks' actions, such as lowering interest rates or quantitative easing, can increase M2, leading to more liquidity in the economy and encouraging investments in risk assets like cryptocurrencies.

The SCP market, where platforms like Solana operate, is also expected to grow significantly. VanEck estimates that the SCP market could expand by 43% to reach $1.1 trillion by the end of 2025. Currently, Solana holds about 15% of this market, but VanEck expects this share to rise to 22% by the end of 2025, supported by Solana's developer dominance, increasing market share in DEX volumes, revenues, and active users.

VanEck's prediction follows a shift in the U.S. Securities and Exchange Commission's (SEC) stance on Solana ETFs. In 2024, several U.S. firms, including VanEck, filed for a Solana ETF. However, the SEC had previously refused to acknowledge these applications. In a recent development, the SEC acknowledged a filing by Grayscale for its SOL ETF, meaning that the commission now has until October to approve or deny the application.