VanEck predicts Solana could surge to $520 by 2025 amid market growth

Investment giant VanEck has projected Solana (SOL) could hit $520 by the end of 2025, marking a 165% increase from its current price of $195.5. The firm’s autoregressive model estimates Solana’s market cap will soar to $250 billion, based on 486 million circulating tokens.

Solana, the fifth-largest cryptocurrency, has surged 102% over the past year, reaching a $94.1 billion market cap. VanEck’s forecast hinges on Solana’s expanding role in the smart contract platform market, which is expected to grow 43% to $1.1 trillion by year-end. Solana’s market share is anticipated to rise from 15% to 22%, driven by developer adoption, decentralized exchange volume growth, and increasing active users.

The U.S. M2 money supply, historically correlated with crypto market capitalization, is forecasted to hit $22.3 trillion with a 3.2% annual growth rate, further fueling Solana’s price potential. A key contributor to Solana’s expansion is the rise of Solana-based memecoins, alongside the network recording 135 million active wallet addresses in November.

VanEck, which holds positions in Solana, has applied for a spot Solana ETF with the SEC, aligning with regulatory moves, including a similar application by Grayscale. While the firm has a history of ambitious predictions, it remains firm on its Solana forecast. However, VanEck clarifies that its price target is not financial advice.

As institutional interest in Solana grows, the blockchain’s role in the crypto ecosystem strengthens, positioning it as a dominant force in the smart contract sector.