PANews reported on February 7 that according to CoinDesk, investment company VanEck predicts that with the growing demand for smart contract platforms (SCP) and the increase in the U.S. M2 money supply in the coming months, Solana's SOL token price will reach $520 by the end of 2025. VanEck predicts that by 2025, the M2 money supply will grow from the current $21.5 trillion to $22.3 trillion. When the U.S. central bank increases M2 by lowering interest rates or quantitative easing, more funds enter circulation, leading to increased liquidity in the economy and encouraging investment in risky assets such as cryptocurrencies.
The SCP market, on the other hand, is the area where platforms such as Solana operate, allowing the creation and execution of smart contracts. VanEck estimates that the SCP market could grow 43% to $1.1 trillion by the end of 2025. Currently, Solana holds about 15% of this market, but VanEck expects this to rise to 22% by the end of 2025. The report adds: "Using an autoregressive (AR) forecasting model, we estimate that Solana will have a market cap of approximately $250 billion, which would imply a price of $520 for SOL based on approximately 486 million circulating tokens."
