"VanEck Predicts Solana's SOL to Surge to $520 by 2025"

Solana (SOL) Price Targeted at $520 by VanEck Amid Smart Contract Platform Surge

VanEck, a global investment firm, has released a new forecast predicting that Solana's SOL token could reach $520 by the end of 2025. This projection is part of a broader analysis of the cryptocurrency market and monetary conditions that could drive growth in the smart contract platform sector.

According to VanEck's latest research, the U.S. M2 money supply is expected to expand from its current level of $21.5 trillion to approximately $22.3 trillion by the end of 2025. This metric, which includes cash, checking deposits, and easily convertible near money, has historically shown correlation with cryptocurrency market performance.

The analysis suggests that this increase in money supply could create favorable conditions for cryptocurrency investments. When central banks expand M2 through various monetary policy tools, such as lowering interest rates or implementing quantitative easing measures, it typically results in increased liquidity flowing into various asset classes, including digital currencies.

VanEck's research team employed an autoregressive (AR) forecast model to analyze historical data and project future values for Solana. Based on this analysis, they estimate that Solana's market capitalization could reach approximately $250 billion, which would translate to a price of $520 per SOL token, given the projected supply of 486 million floating tokens.

The smart contract platform market, where Solana operates, is projected to experience substantial growth over the next two years. VanEck forecasts this sector to expand by 43%, reaching a total value of $1.1 trillion by the end of 2025.

Currently, Solana holds approximately 15% of the smart contract platform market share. However, VanEck's analysis suggests this percentage could increase to 22% by the end of 2025, representing a substantial gain in market position.

The firm bases this optimistic outlook on several key metrics, including Solana's growing developer community, increasing share of decentralized exchange (DEX) trading volumes, rising revenue streams, and expanding active user base.

Recent regulatory developments have also contributed to the positive outlook for Solana. The U.S. Securities and Exchange Commission (SEC)