The investment company Vaneck predicts that Solana’s sun will affect $ 520 by the end of 2025, as the demand for smart contract platforms (SCP) is growing and M2 money supply supplies in the coming months.
M2 money amount measures how much money is circulating in the US economy that tends to affect the crypto market. M2 money amount includes cash, contribution of deposits and light convertible near money such as savings deposits and money market funds.
Vaneck predicts M2 money will grow to $ 22.3 trillion in 2025 from the current $ 21.5 trillion. When central banks increase M2 by lowering interest rates or through quantitative relief, more money comes in circulation, leading to more liquidity in the economy and encourages investment in risk assets, such as cryptocurrencies.
On the other hand, the SCP market is where platforms like Solana work, allowing for the creation and execution of smart contracts – which Vaneck estimates could grow by 43% to reach $ 1.1 trillion by the end of 2025.
Currently, Solana has approx. 15% of this market, but Vaneck expects this to rise to 22% by the end of 2025.
“We predict its proportion to rise to 22% of EOY 2025,” Vaneck said in the Friday post. “This projection is supported by Solana’s developer dominance, increasing the market share in DEX quantities, revenue and active users.”
“Using an authentic (AR) forecast model, we estimate that Solana’s market capital reaches ~ $ 250b, which means a sun -price of $ 520 based on ~ 486m floating tokens,” added it. An autorous (AR) forecasting model looks at past data to predict future values.
Vaneck is among a bunch of US companies that filed a Solana ETF in 2024. Previously, the US Securities and Exchange Commission (SEC) had previously refused to recognize several applications for ETFS traces of Sun and had asked CBOE to take down its previously uploaded 19B -4s for these ETFs.
However, in a change of Thursday, SEC recognized an archiving of grayscale for its Sun ETF, which means that the Commission now has until October to approve or deny the application.
