The $100 billion Asset management firm VanEck has revealed its bullish Solana (SOL) forecast. In a post on X, the company predicted that the crypto asset will reach $520 by the end of 2025, citing the relationship between the U.S. M2 money supply and the overall value of similar cryptos like Ether and BNB.
M2 tracks the money available for spending and investing in an economy. It’s a crucial indicator monitored by central banks and economists, as it can help predict inflation, economic growth, and other macroeconomic trends.
VanEck Predicts SOL at $520
According to VanEck’s tweet, the U.S. M2 money supply will reach $22.3 trillion by the end of 2025, maintaining its 3.2% annualized growth rate since its last trough in October 2023. VanEck estimates that the total market capitalization of smart contract platforms (SCPs) will grow by 43% to $1.1 trillion by the end of 2025, surpassing its 2021 peak of $989 billion.
The firm believes the growth will be driven by the increasing adoption of the SCP sector and the expanding use cases for blockchain technology. Solana currently holds 15% of the SCP market capitalization, but VanEck forecasts that this share will rise to 22% by the end of 2025.
VanEck highlighted that Solana’s market dominance would be driven by its decentralized exchange (DEX) volumes, revenues, and active user growth. The network’s developer dominance and growing ecosystem will also contribute to VanEck’s optimistic outlook.
If VanEck’s prediction is correct, the total value of Solana will reach around $250 billion by the end of 2025. Based on the current floating token supply of approximately 486 million, this translates to a SOL price of $520. Notably, as an investor in SOL, VanEck remains confident in the asset’s growth prospects.
Meanwhile, VanEck, Ark 21Shares, and Canary Funds have submitted their S-1 filings for a Solana ETF. The move is crucial to the regulatory approval process and will bring the firms closer to listing their ETFs on an exchange.
VanEck’s Other Predictions
VanEck also predicted a massive surge in Bitcoin’s price, reaching $180,000 by the end of 2025. The firm expects Ether to surpass $6,000, and SUI is projected to exceed $10. It believes this year will be driven by increasing institutional demand.
The asset manager sees the market hitting a medium-term peak in the first quarter 2025. Prices could retrace by 30% before rebounding to new all-time highs by the fourth quarter.
