Global investment firm VanEck has made a bold prediction for Solana (SOL), projecting its value to soar to $520 by the end of 2025. The firm’s analysis is based on Solana’s share within the smart contract platform (SCP) market and the historical correlation between crypto market capitalization and the growth in the US M2 money supply.
VanEck’s forecast relies on the assumption that the US M2 money supply will reach $22.3 trillion by late 2025, maintaining an annualized growth rate of 3.2% from its last trough in October 2023. The firm estimates that the total SCP market capitalization will grow 43% to $1.1 trillion by year-end 2025, surpassing its 2021 peak. With Solana currently holding 15% of the SCP market cap, VanEck expects this proportion to rise to 22% by the end of 2025, supported by Solana’s developer dominance and increasing market share in various metrics.
While VanEck’s long-term outlook for Solana is bullish, the short-term price action remains corrective. SOL is currently trading within a descending channel on the 4-hour chart, characterized by lower highs and lower lows. The immediate support level is near $175, while resistance is found near $215. If SOL fails to break above the midline of the descending channel in the near term, a move toward the lower boundary appears likely.
VanEck’s price target for Solana presents an optimistic scenario for the cryptocurrency, but investors should remain cautious and monitor short-term market developments. The firm’s analysis highlights the potential for Solana to capture a larger share of the growing SCP market, which could drive significant price appreciation in the coming years.
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Tags: Solana, SOL, VanEck, price prediction, smart contract platforms, market capitalization, technical analysis
Source: https://www.newsbtc.com/news/solana-520-investment-firm-bombshell-sol-prediction/