VanEck predicts that the price of Solana will reach $520 by the end of 2025

The American investment management company VanEck predicts that the price of Solana could reach $520 by the end of 2025, which would represent a significant increase from its current trading price. Using an autoregressive forecasting model, VanEck estimates that based on approximately 486 million circulating tokens, Solana's market capitalization will reach about $250 billion. This target price implies a 165% increase from the current price of $195.5.

As the fifth largest cryptocurrency by market value, Solana has risen by 102% in the past 12 months to a market cap of $94.1 billion. VanEck's valuation for Solana is based on its expected year-end market share in the smart contract platform market. The company's forecast for smart contract platform valuations is linked to growth in US M2 money supply, which historically correlates with cryptocurrency valuations.

Despite some ambitious predictions made previously by VanEck analysts - such as retracting their prediction for Cosmos' ATOM token - they still stand firm on their current prediction for Solana. They expect US M2 money supply to reach $22.3 trillion at year-end with an annual growth rate of 3.2%. Meanwhile, they predict that the smart contract platform market will grow by 43%, reaching a record-breaking $1.1 trillion dollars; and anticipate that Solana’s share within this marketplace will rise from 15% to around 22%, thanks largely due to developer dominance and increasing shares in decentralized exchange volume, revenue and active users.