Asset manager VanEck has predicted that Solana will surge 162% from the current market price by the end of 2025, citing its smart contract platform expansion.
The prominent Bitcoin and Ethereum exchange-traded funds (ETFs) issuer has recently reviewed its earlier Solana predictions upwards. In a January 6 post, VanEck added $20 to its earlier Solana outlook this year, predicting an over twofold surge to $520.
New Solana Target Hinges on SCP Expansion
VanEck tweeted that it collated its year-end Solana price outlook using the performance of the smart contract platform (SCP) market. The sector categorizes crypto networks with smart contract features, including high-caliber names like Ethereum, Cardano and BNB.
The asset manager predicted the SCP would grow considerably this year, citing surging traction. Using regression analysis, it noted that the sector’s market cap would increase 43% from its current valuation of $770 billion to $1.1 trillion by the end of 2025.
Meanwhile, VanEck noted that the SCP’s trounce of its 2021 peak valuation of $989 billion to $1.1 trillion would stem from its strong correlation with the US M2 money supply. The tweet highlighted that the M2 fiscal supply would maintain its 3.2% annualized growth rate to hit $22.3 trillion by the end of the year, dragging the SCP with it.
Solana to Capture More SCP Market Shares
Moreover, the prominent asset manager asserted that Solana would increase its market dominance in the SCP market. Currently standing at 15%, VanEck expects the “Ethereum killer” to expand its market share to 22% by the end of the year.
As a result, a 22% share of the proposed $1.1 trillion will culminate in a market cap of $250 billion. Furthermore, a valuation of $250 billion will ensure Solana’s price gets to $520 per coin at a sustained circulating supply of 487 million.
Notably, VanEck suggested that the upsurge in Solana SCP dominance will result from the network’s growing developer dominance, DEX volume revenue, and active users.
Meanwhile, VanEck’s corrected prediction still fails to match Bitwise’s outlook for the fifth-largest cryptocurrency by market cap. For context, the latter speculated that the high-caliber cryptocurrency will hit $750 in the same timeframe as VanEck.
At the time of writing, Solana trades at $198.20, up almost 5% in the past 24 hours.
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