Solana price is on the cusp of entering the thrilling phase of the 2025 bull run after consolidating in the last few months.
The approval of spot Solana ETFs in the US will be a major turning point for the SOL adoption.
VanEck, a New York-based global investment management firm that has been active in the digital asset space in the past few years, has issued a bold prediction of the Solana ecosystem. The firm posted that the Solana network is well positioned to gain more ground in the smart contract platform (SCP) market in the near future, backed by around 486 million floating tokens, led by memecoins.
The firm believes that Solana price will reach a target of about $520 by the end of 2025, which will reciprocate to a market cap of around $250 billion. According to a post on the X platform, VanEck’s SCP market cap forecast was derived from the US M2 money supply growth, which has a positive correlation with crypto market capitalization.
“We project M2 to reach $22.3 trillion by the end of 2025, maintaining its 3.2 percent annualized growth rate since its last trough in October 2023. Using regression analysis, we estimate total SCP market capitalization will grow 43 percent to $1.1 trillion by year-end 2025, compared to $770 billion today, surpassing its 2021 peak of $989 billion,” VanEck noted.
“We project M2 to reach $22.3 trillion by the end of 2025, maintaining its 3.2 percent annualized growth rate since its last trough in October 2023. Using regression analysis, we estimate total SCP market capitalization will grow 43 percent to $1.1 trillion by year-end 2025, compared to $770 billion today, surpassing its 2021 peak of $989 billion,” VanEck .
According to VanEck’s analysis, Solana’s SCP market cap will grow to 22 percent from 15 percent by the end of this year. Furthermore, Solana has been gaining significant traction in web3 development, thus overtaking other top Layer One (L1) chains in on-chain activities and revenues.
Top Reasons Why Solana Will Grow Exponentially
The Solana network is heavily influenced by the Web3 community in the United States, led by President Donald Trump through his official memecoin dubbed Official Trump (TRUMP). The Solana’s memecoin ecosystem has grown to over $11 billion, heavily influenced by the Pump.fun protocol.
Having finished a whole year without a network failure, the Solana network has attracted more institutional investors seeking to diversify their crypto portfolios. Worth noting that VanEck is among the fund managers seeking to offer a spot in the US.
Other fund managers seeking to offer spot Solana ETFs include Bitwise, Canary Capital, 21Shares, and Grayscale Investments. The recent change of the US SEC chairman, following the inauguration of earlier this year, has significantly increased the odds of the agency approving a spot Solana ETF before the end of this year.
In Brazil, the first spot Solana ETF was approved in 2024, with more than one issuer, led by Hashdex, receiving the approval.
As a result of the heightened demand from institutional investors and retail traders, Solana’s total value locked has grown to more than $9 billion and a stablecoins market cap of around $12 billion.