Solana to Hit $520, $250B Market Cap by Year's End: VanEck

VanEck, a leading investment management firm, has recently predicted that Solana (SOL) will reach a price of $520 by the end of the year, with a market capitalization of $250 billion. This bullish outlook is based on several factors, including Solana's growing influence in the Smart Contract Platform (SCP) market and its strong developer community.

According to VanEck's report, Solana currently represents 15% of the SCP market cap, which is expected to rise to 22% by the end of 2025. This growth is driven by Solana's strong developer influence, DEX trading volume share, revenue, and the continued expansion of its active user base. VanEck's valuation model ties Solana's expected SCP market share to the growth of the U.S. M2 money supply, which has historically been related to the cryptocurrency market cap.

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. With 4.87 billion circulating tokens, this implies a target price of $520 for SOL.

Solana's growth prospects are further bolstered by its innovative features, such as high-speed transactions and low fees, which make it an attractive platform for developers and users alike. As the cryptocurrency market continues to evolve, Solana's strong fundamentals and growing ecosystem position it well for future growth.