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VanEck Says SOL Could Hit $520 Soon as SEC Opens Door To Solana ETF
- VanEck projects the smart contract platform market to grow 43% to US$1.1 trillion by 2025, driven by their correlation analysis with US M2 money supply growth.
- Based on Solana’s 15% market share in the smart contract space, VanEck estimates SOL could reach US$520 with a market cap of US$250 billion, up significantly from its current US$198 price point.
- The SEC has notably acknowledged a Spot Solana ETF filing, marking the first time they’ve done so for an asset previously labelled as a security, though approval remains uncertain.
After XRP has significantly drawn the altcoin market’s attention, it could be time for Solana (SOL) to finally shine.
Investment firm VanEck predicts that the price per SOL could skyrocket to US$520 (AU$832) before 2026, on the back of growing smart contract demand and expectations for an increase in money supply.
Our SCP market cap forecast is derived from U.S. M2 money supply growth, given its strong historical correlation with crypto market capitalization.
VanEck VanEck Expects Smart Contracts on Solana To Soar
The M2 money supply comprises cash, checking deposits and other forms of near money that are readily convertible; it monitors the circulation of money within the US economy. VanEck expects this to reach US$22.3 trillion (AU$35.6 trillion) by the end of 2025.
Related: Report Reveals: APAC Retail Bitcoin Traders Outpace US and Europe
Based on this, they believe the market for smart contract platforms (SCP) to also grow by 43% to US$1.1 trillion (AU$1.75 trillion), based on M2âs âstrong historical correlation with crypto market capitalizationâ.
We project M2 to reach $22.3T by the end of 2025, maintaining its 3.2% annualized growth rate since its last trough in October 2023. Using regression analysis, we estimate total SCP market capitalization will grow 43% to $1.1T by year-end 2025 (vs. $770B today), surpassing its 2021 peak of $989B.
VanEck As Solana captures a sizeable chunk of the SCP market cap â 15% according to VanEck â this too should rise, resulting in a US$250 billion (AU$400 billion) market cap and price of US$520 (AU$831.25) per SOL.
At the time of writing, the coin trades hands for US$197.98 (AU$316.48) and has a market cap of US$96.5 billion (AU$154.26), making it the fifth-largest crypto.
SEC Makes âNewsworthyâ Acknowledgement
Meanwhile, thereâs movement on the crypto exchange-traded fund (ETF) front. The US Securities and Exchange Commission (SEC) has recently âacknowledgedâ a filing for a Spot Solana ETF, something thatâs worth mentioning because, according to Bloomberg ETF analyst James Seyffart, âthe SEC had refused to do this in recent filing attempts for SOLâ.
Related: US Govt Didnât Order Crypto Debanking: Democratic Rep Testifies, Calls Out Trumpâs Bias
Fellow Senior Bloomberg ETF analyst, Eric Balchunas, added that itâs the first time the SEC has done this for something thatâs been named a security in the past.
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Although it doesnât mean approval is imminent, the analysts believe itâs a small step in the right direction. SOL hasnât really reacted to the news and is down 0.2% in the past 24 hours.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
