- Solana (SOL) has been predicted to hit $520 by the end of this year as its Smart Contract Platform market share is expected to increase to 22%.
- Ali Martinez, however, believes that SOL can hit $4700 from the current position.
Solana’s (SOL) multiple attempts to breach its all-time high price of $294 have been unsuccessful as profit-taking actions and broad market liquidations create a crucial psychological level within the $230 and $190 range.
At press time, the asset was trading at $195 after declining by 3.4% in the last 24 hours and 15.8% in the last seven days. Interestingly, market experts believe that these are part of the steps towards an unprecedented margin. According to our recent analysts, SOL could rise as high as $750.
Solana (SOL) Price Analysis
Subjecting the asset to critical analysis, Investment firm VanEck predicted that SOL could hit $520 before the end of the year. Mathematically, this would be a whopping 266% surge from the current level. According to the report, the significant surge could be triggered by the rising demand for smart contract platforms and the expected increase in M2 money supply.
Our Solana Price Target by the End of 2025 is $520
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…
— VanEck (@vaneck_us) February 6, 2025
In the report, the M2 money supply was highlighted to be measured by the quantity of money circulating in the US economy. Economically, this usually includes checking deposits and cash, easily convertible near money. Currently, the M2 supply is around $21.5 trillion. This is expected to grow to $22.3 trillion by the end of 2025.
The Central Bank is expected to do this by lowering interest rates or engaging in quantitative easing. The subsequent increase in liquidity in the market encourages investment in risk assets like crypto. Analyzing the Smart Contract Platform market, VanEck predicted that it could reach $1.1 trillion by the end of 2025. Fascinatingly, this represents a 43% increase from the current valuation.
Digging further into this, we found that Solana currently has a 15% share of this market. According to VanEck, this could rise to 22% by the end of the year. Also, they expect the SOL’s market cap to reach $250 billion based on an autoregressive (AR) forecast model.
We forecast its share to rise to 22% by EOY 2025. This projection is supported by Solana’s developer dominance, increasing market share in DEX volumes, revenues, and active users. Using an autoregressive (AR) forecast model, we estimate Solana’s market cap will reach ~$250B, implying a SOL price of $520 based on ~486M floating tokens.
VanEck’s SOL ETF Filing and Analyst’s Bold Prediction
VanEck’s prediction follows its filing for a spot SOL Exchange Traded Fund (ETF) with the US Securities and Exchange Commission (SEC). As we discussed earlier, the decision to settle on SOL instead of XRP was based on its similarities with Ethereum in terms of decentralized language and blockchain characteristics.
Meanwhile, renowned analyst Ali Martinez believes that $520 is a conservative estimate. As noted in our earlier post, Martinez believes that SOL could hit $4,700 after embarking on a 1,800% run. His prediction was based on the formation of a cup-and-handle pattern, which is mostly associated with a bullish reversal. However, he expects this prediction to get validated once the asset makes a decisive move above $220.
