VanEck reveals when Solana price could reach $520
Solana price forecast
American investment firm VanEck expects that Solana (SOL) could reach $520 by the end of 2025. The company shared this forecast on its X (formerly Twitter) page.
"Using an autoregressive (AR) forecasting model, we estimate that Solana’s market capitalization will reach $250 billion, implying a SOL price of $520 with approximately 486 million tokens in circulation," VanEck stated in its post.
At the moment, Solana is trading at $195.5, which is 3.5% lower than the previous day. A target price of $520 would mean an increase of 165% over the year. Over the past 12 months, SOL has already risen by 102%. It is currently the fifth-largest cryptocurrency, with a market capitalization of $94.1 billion.
"We evaluate Solana based on its projected market share in the smart contract platform (SCP) sector by the end of the year," VanEck explained.
The forecasted SCP market capitalization is based on the growth of the U.S. M2 money supply, as this metric has historically correlated strongly with the crypto market capitalization. M2 includes cash, demand deposits, and highly liquid financial instruments such as savings accounts and money market funds.
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Why VanEck believes in Solana
Over the past year, Solana has significantly strengthened its position, fueled by the popularity of meme coins built on its blockchain. In November, the number of active wallets on the network exceeded 135 million.
VanEck disclosed that it holds positions in Solana and clarified that its price prediction is not an investment recommendation.
Additionally, VanEck has applied to the SEC for the launch of a spot Solana ETF. Although the Securities and Exchange Commission (SEC) had not previously formally acknowledged receiving such applications, on February 8, the agency requested public comments on Grayscale’s Solana ETF application, which could indicate that regulators are considering such financial products.
Meanwhile, Solana has surpassed Ethereum in revenue for the first time, driven by the success of the TRUMP token.
