VanEck, an asset management firm, has recently forecasted that the price of Solana will reach $530 by the end of 2025. 

In a recent post on X, the firm said that the SOL price will grow due to two primary factors: Solana’s growing market dominance in the smart contract platform (SCP) industry and the predicted expansion of the US M2 money supply.

The company said that the total market cap for smart contract platforms will grow by 43%, from $770 billion today to $1.1 trillion by the end of this year.

This growth is thanks to an increase in the United States’ M2 money supply and it is expected to reach $22.3 trillion by 2025. Historically, the expansion of the M2 money supply has been strongly correlated with the increase in crypto market capitalization.

Solana currently holds about 15% of the SCP market cap. VanEck forecasts that by the end of 2025, Solana’s market share will increase to 22%. This is supported by Solana’s supremacy in developer activity, decentralized exchange (DEX) volume, and active user growth.

Based on an autoregressive (AR) forecast model and Solana’s expected market share growth, VanEck estimates that Solana’s market cap could reach approximately $250 billion. With around 486 million floating SOL tokens, this would imply a price of $520 per token by the end of 2025.

Currently, Solana’s price is around $190, down nearly 5% in the last 24 hours and 21% lower over the past week. However, it is up 98% from the previous year and reached an all-time high of over $294 in January 2025.

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