Solana Price to Reach $520 by 2025? VanEck’s Optimistic Projection
Solana Price – Investment firm VanEck has released an optimistic forecast for Solana (SOL), predicting that the price of the cryptocurrency will reach $520 by the end of 2025. This projection is based on the expected growth in demand for smart contract platforms (SCP) and the anticipated increase in M2 money supply. M2 money supply measures the amount of money circulating in the U.S. economy, including cash, checking deposits, savings deposits, and money market funds, all of which influence the broader financial markets, including cryptocurrencies. VanEck estimates that the M2 money supply will grow to $22.3 trillion by 2025, up from $21.5 trillion currently.
Impact of M2 Money Supply on Cryptocurrency Market
The increase in M2 money supply generally leads to more liquidity in the economy, making it easier for people to invest in risk assets like cryptocurrencies. Central banks typically increase M2 by lowering interest rates or engaging in quantitative easing, which injects more money into the market. As liquidity rises, VanEck expects the demand for smart contract platforms to soar, with SCP market capitalization projected to grow by 43%, reaching $1.1 trillion by the end of 2025.
Solana’s Growing Market Share and Developer Dominance
Solana, which currently holds about 15% of the SCP market, is expected to increase its share to 22% by the end of 2025. VanEck attributes this growth to Solana’s developer dominance, its increasing market share in decentralized exchanges (DEX) volumes, and the rise in active users. In its report, VanEck also predicted that Solana’s market cap will reach $250 billion, implying a SOL price of $520 based on approximately 486 million floating tokens.
Solana ETF Filing and SEC Developments
In addition to its price forecast, VanEck is among several U.S. firms that have filed for a Solana ETF in 2024. Although the U.S. Securities and Exchange Commission (SEC) had previously rejected multiple Solana ETF applications, the SEC recently acknowledged a filing by Grayscale for an SOL ETF, marking a shift in tone. The SEC now has until October to decide whether to approve or reject the application, which could be a significant development for Solana investors and the broader crypto market.
As VanEck’s prediction and the developments surrounding Solana ETFs unfold, many are watching closely to see if Solana’s growth trajectory aligns with these bold forecasts.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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