- VanEck has revised its Solana (SOL) price prediction to $520 by end of 2025, citing smart contract platform (SCP) expansion.
- The SCP sector is expected to grow from $770 billion to $1.1 trillion, driven by its correlation with the U.S. M2 money supply.
- Solana’s SCP market share is projected to rise from 15% to 22%, increasing its market cap to $250 billion.
Asset manager VanEck has significantly revised its Solana (SOL) price outlook, now predicting that SOL will surge to $520 by the end of 2025. This update follows the firm’s reassessment of Solana’s growth potential within the smart contract platform (SCP) market.
VanEck’s New Solana Target Driven by SCP Expansion
In a recent post on January 6, VanEck announced the $520 price target, adding $20 to its earlier forecast. The firm’s analysis is rooted in the performance of the SCP sector, which includes major smart contract networks like Ethereum, Cardano, and BNB.
Using regression analysis, VanEck projected that the SCP sector’s total market cap would grow 43%, from its current valuation of $770 billion to $1.1 trillion by the end of 2025. This growth is expected to surpass the sector’s 2021 peak valuation of $989 billion.
VanEck attributes this surge to the strong correlation between the SCP sector and the U.S. M2 money supply. The M2 fiscal supply, which includes cash, checking deposits, and easily convertible near money, is projected to maintain a 3.2% annual growth rate, reaching $22.3 trillion by year-end. VanEck suggests this monetary expansion will drag the SCP sector upward in tandem.
Solana’s Growing Market Share in SCP Sector
VanEck predicts that Solana will capture more market share within the SCP sector, increasing from its current 15% to 22% by the end of 2025. This would result in Solana’s market cap hitting $250 billion.
At a sustained circulating supply of 487 million tokens, this market cap would translate to a price of $520 per SOL. VanEck attributes this rise in dominance to Solana’s:
- Growing developer activity
- Increased decentralized exchange (DEX) volume
- Rising number of active users
These factors are expected to solidify Solana’s position as a leading smart contract platform, earning it the moniker of an “Ethereum killer.”
While VanEck’s revised prediction is bullish, it still falls short of Bitwise’s forecast. The crypto-focused asset manager Bitwise projects Solana will reach $750 by the end of 2025, citing similar growth trends in the smart contract space.
Both predictions highlight strong institutional confidence in Solana’s long-term potential, driven by its scalable infrastructure, low transaction fees, and growing ecosystem of decentralized applications.
Source: https://thenewscrypto.com/vaneck-predicts-solana-to-surge-to-520-by-end-of-2025/