Investment firm Vaneck predicts Solana’s Sol will hold $ 520 at the end of 2025 as the demand for Smart Contract Platforms (SCP) increases and increased M2 currency supply in the coming months.
The M2 measures the supply of money on how much money is transferring to the US economy, which has the potential to influence the crypto market. M2 currency supply includes cash, checking deposits, and can easily be replaced near money such as savings deposits and money market funds.
Vaneck predicts M2 Money Supply will grow to $ 22.3 trillion in 2025 From the current $ 21.5 trillion. When central banks increase the M2 by lowering interest rates or by easing volume, more money enters circulation, leading to greater economic liquidity and Encourages investments in risk possessionsLike cryptocurrencies.
On the other hand, the SCP market is where platforms such as Solana operate, allowing the creation and implementation of smart contracts – that Vaneck estimates can grow by 43% of up to $ 1.1 trillion in End of 2025.
Currently, Solana holds about 15% of this market, but Vaneck expects it to increase by 22% by the end of 2025.
“We are supporting part of it to rise to 22% of EOY 2025,” Vanck said in Friday’s post. “This projection is supported by Solana’s developer dominance, increasing market sharing with DEX volumes, revenue, and active users.”
“With an autoregressive forecasting model (AR), we estimated the Solana market cap of up to $ 250B, indicating a sol price of $ 520 based on ~ 486m floating tokens,” he added. An autoregressive forecast (AR) forecast looks at previous data to predict future values.
Vaneck belongs to a group of US companies that —File for a Solana ETF in 2024. Previously, the US Securities and Exchange Commission (SEC) refused to identify several applications for monitoring ETFS Sol and told CBOE to drop its previously uploaded 19B-4s for ETFs.
However, in a tone shift on Thursday, the SEC recognized a grayscale filing for its Sol etf, which meant the commission now until October to approve or reject the application.
