Top asset manager VanEck has set a $520 price target for Solana (SOL) by the end of 2025, citing a projected 22% market share in the smart contract platform (SCP) sector. Currently, Solana holds 15% of the SCP market, but as developer activity, DEX volumes, and user adoption surge, VanEck expects its dominance to grow.
VanEck’s $520 Price Prediction Explained
VanEck’s forecast is tied to U.S. M2 money supply growth, which has historically correlated with the crypto market’s expansion. The firm projects M2 to reach $22.3 trillion by 2025, boosting SCP’s total market cap to $1.1 trillion, a 43% increase from today’s $770 billion.
If Solana captures 22% of that market, its market cap would jump to $250 billion, implying a $520 SOL price, assuming a circulating supply of 486 million tokens.
Solana’s On-Chain Activity Hits Record Highs
January 2025 marked a major milestone for Solana’s on-chain growth, with several key metrics hitting all-time highs:
🔹 Real Economic Value (REV) surged to $552 million, making up 62% of all global on-chain transaction demand.🔹 Application revenue on Solana reached $517 million, accounting for 63% of total app revenue across all blockchains.🔹 DEX volumes skyrocketed to $339 billion, up 80% month-over-month, driven largely by memecoin trading activity.🔹 SOL-USD trading pair volume hit an all-time high of $86 billion, fueled by TRUMP memecoin and other assets.
Solana’s Stablecoin Supply Soars 128%
Solana’s stablecoin ecosystem also saw massive growth, with circulating supply up 128% in January, reaching $11.4 billion.
🔹 USDC dominated the expansion, adding $5.3 billion, now making up 80% of Solana’s stablecoin supply.🔹 The rising USDC liquidity further strengthens Solana’s position in the DeFi ecosystem.
Can Solana Reach $520?
With increasing developer activity, booming DeFi adoption, and growing institutional interest, Solana is rapidly positioning itself as a dominant force in the SCP space.
VanEck’s $520 price target reflects confidence in Solana’s ability to capture an even larger market share. If current trends persist, SOL could be one of the top-performing cryptos by 2025.
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