Asset management firm VanEck has made a bold prediction for Solana’s future, forecasting a 162% increase in its price by the end of 2025. The company attributes this expected growth to the expansion of Solana’s smart contract platform (SCP), marking a potential surge to $520 per coin.
In a recent update posted on January 6, VanEck raised its price prediction for Solana by $20. The asset manager now expects Solana to reach $520, more than double its current market price. This upward revision reflects the growing potential of the smart contract market, where Solana is gaining traction.
How VanEck’s Predictions Are Formed
VanEck’s predictions are rooted in analysis of the smart contract platform sector, which includes major players like Ethereum, Cardano, and BNB. The firm expects this sector to grow significantly in the coming years, with market capitalization projected to rise by 43%, from $770 billion to $1.1 trillion by 2025.
VanEck also predicts that Solana will increase its dominance within the SCP sector. Currently holding a 15% market share, Solana is expected to rise to 22% by 2025. If this happens, and the SCP sector reaches a $1.1 trillion valuation, Solana’s market cap could hit $250 billion, driving its price to $520 per coin based on a circulating supply of 487 million coins.
Our Solana Price Target by the End of 2025 is $520
— VanEck (@vaneck_us) February 6, 2025
We value Solana (SOL) based on its projected year-end market share within the smart contract platform (SCP) market. Our SCP market cap forecast is derived from U.S. M2 money supply growth, given its strong historical correlation…
Factors Behind Solana’s Growth
Several key factors contribute to this optimistic outlook for Solana. VanEck cites the growing number of developers building on the Solana network, increasing decentralized exchange (DEX) revenue, and the rise in active users. These factors are expected to drive Solana’s market share growth and support its price appreciation.
VanEck’s new forecast for Solana is still more conservative compared to other industry predictions. For example, Bitwise has suggested that Solana could reach $750 by 2025. However, VanEck’s analysis places Solana at a more moderate $520 by the same time.
Current Solana Market Price
As of now, Solana is trading at $198.20, having gained nearly 5% in the past 24 hours. With its continued growth, it’s clear that Solana’s future looks promising within the ever-expanding smart contract space.
VanEck’s revised prediction underscores the promising outlook for Solana and the smart contract sector. With expected growth in both market capitalization and Solana’s market share, the cryptocurrency could see significant price appreciation by 2025. Investors and enthusiasts alike will be keeping a close eye on Solana’s progress as it strengthens its position in the competitive smart contract platform market.
