Investment giant VanEck has released an in-depth report forecasting that Solana (SOL) could reach $520 by the end of 2025. The report highlights the growth potential of smart contract platforms and the increasing M2 money supply, suggesting that economic expansion and rising investor interest could significantly boost Solana’s market capitalization.
M2 Money Supply and Investor Sentiment on the Rise
The M2 money supply, which includes cash, demand deposits, savings accounts, and other liquid assets, currently stands at $21.5 trillion in the U.S. According to VanEck, this figure could rise to $22.3 trillion by 2025, driven by lower interest rates and expansionary monetary policies. Such financial conditions could enhance investor confidence, particularly in technology and finance sectors.
With greater market liquidity, demand for smart contract platforms is expected to grow, positioning Solana as a leading blockchain ecosystem. VanEck emphasizes that these factors could directly impact Solana’s price trajectory.
Solana’s Market Share Expands
The smart contract sector is projected to expand by 43%, reaching a total market valuation of $1.1 trillion by 2025. Currently, Solana holds approximately 15% of this market, and VanEck predicts this could rise to 22% within two years.
Solana’s growth is fueled by increasing developer activity, decentralized exchange (DEX) volume, user adoption, and revenue streams. The report estimates that Solana’s market cap could hit $250 billion, pushing SOL’s price to $520.
Regulatory Developments and Institutional Interest
Regulatory changes in the U.S. also play a crucial role. VanEck has applied for a Solana-based investment fund, which is currently under review by the SEC (Securities and Exchange Commission). Although previous applications faced rejection, recent approvals, such as Grayscale’s filings, indicate a shifting regulatory landscape.
The SEC’s decision on VanEck’s proposal is expected by October, potentially opening the door for new crypto investment products in the market.
Stay tuned to Dey There for the latest updates on Solana, crypto regulations, and market forecasts.
