Solana’s SOL Could Surge to $520 by the Close of 2025, According to VanEck.

VanEck has projected that Solana’s SOL token could reach $520 by the end of 2025, driven by an increase in the M2 money supply and expanding demand for smart contract platforms (SCPs).

M2 money supply is a measure of the money circulating in the U.S. economy, including cash, checking deposits, and near-money assets like savings accounts and money market funds. VanEck predicts M2 will grow to $22.3 trillion by 2025, up from $21.5 trillion currently. This growth is expected to push more liquidity into the economy, encouraging greater investment in risk assets such as cryptocurrencies.

The SCP market, where platforms like Solana thrive, is set to experience substantial growth, with the market predicted to increase by 43% to $1.1 trillion by 2025. Solana, which currently holds around 15% of the market, is expected to capture 22% of it by the end of 2025, according to VanEck’s forecast.

“We forecast Solana’s market share to rise to 22% by the end of 2025,” VanEck said. “This is supported by Solana’s strong developer ecosystem, growth in decentralized exchange (DEX) volumes, and a surge in active users.”

Using an autoregressive (AR) forecast model, which examines historical data to make predictions, VanEck estimates Solana’s market cap could reach approximately $250 billion, leading to a SOL price of around $520, assuming around 486 million circulating tokens.

In addition, VanEck is among several firms that filed for a Solana ETF in 2024. Although the U.S. Securities and Exchange Commission (SEC) had previously rejected ETF applications for SOL, it acknowledged Grayscale’s filing for a Solana ETF on Thursday, signaling that a decision could come as soon as October.