Zinger Key Points
- The firm expects Solana’s market cap to hit $250 billion, assuming a circulating supply of approximately 486 million tokens.
- Solana marks one full year without network outages, reinforcing its position as the second-largest chain by total value locked.
Asset manager VanEck has projected a price target of $520 for Solana SOL/USD by the end of 2025, citing its rising market share within the smart contract platform sector.
What Happened: The asset manager's forecast is based on an analysis of U.S. M2 money supply growth and its correlation with overall crypto market capitalization.
According to VanEck's projections, the market capitalization of smart contract platforms (SCP) will grow 43% to $1.1 trillion by the end of 2025, surpassing its 2021 peak.
The firm expects Solana's market share within this sector to rise from 15% to 22%, driven by increased developer adoption, higher trading volumes on decentralized exchanges and an expanding user base.
"Solana's trajectory in developer activity and DeFi engagement suggests a significant market share increase," VanEck stated.
At the projected $250 billion market cap, Solana's price would reach $520 per token, assuming a circulating supply of approximately 486 million SOL.
VanEck's calculations rely on historical data showing a strong relationship between money supply growth and SCP market valuations.
Also Read: MicroStrategy Rebrands As Strategy, Unveils New Logo And Bitcoin-Focused Identity
Why It Matters: The announcement coincides with Solana reaching one full year without major network failures, a milestone for a blockchain that previously faced frequent outages.
Despite a history of congestion issues and high transaction failure rates, Solana's total value locked (TVL) in decentralized finance (DeFi) has surged, making it the second-largest chain by TVL.
VanEck's outlook also considers Firedancer, an independent validator client developed to enhance Solana's network stability and prevent the outages that plagued its earlier years.
"The resilience and improvements in Solana's network infrastructure further bolster its position as a leading smart contract platform," the firm noted.
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