The Solana network has marked a full year without an outage, and one prominent asset manager expects a big year ahead for the chain’s native token, predicting a record high of $520 for SOL by the end of 2025.
Asset manager VanEck predicts SOL will rise to that mark by the end of 2025, as a result of grabbing a higher share of the smart contract blockchain market, along with increasing market share in DEX volumes and active users.
In an X post, VanEck—which operates spot Bitcoin and Ethereum ETFs—said that its smart contract platform forecast is tied to the U.S. M2 money supply expansion. The firm believes that Solana’s growing success among developers and users will help fuel substantial price gains ahead.
Our Solana Price Target by the End of 2025 is $520
We value Solana (SOL) based on its projected year-end market share within the smart contract platform (SCP) market. Our SCP market cap forecast is derived from U.S. M2 money supply growth, given its strong historical correlation…
— VanEck (@vaneck_us) February 6, 2025
“We estimate Solana’s market cap will reach ~$250 billion, implying a SOL price of $520 based on ~486 million floating tokens,” VanEck posted, tagging analysts Matthew Sigel and Patrick Bush.
Solana is up 105% over the last year at a current price of $197, per CoinGecko, and hit an all-time high price of $293 on January 19.
VanEck’s bullish prediction comes as Solana developers mark the longest period in the history of the blockchain—which first went live in 2020—without a loss of consensus, according to outage tracker Solana Status.
Solana has suffered serious problems with outages in the past, particularly in its earlier days. Between partial outages and full-fledged downtime, the chain has marked numerous instances of technical issues over its lifespan, including a 19-hour-long outage in 2024.
Recent stability increases haven’t come from nowhere. For example, an early version of the much anticipated Firedancer validator client went live in September. Built by infrastructure developer Jump Crypto, Firedancer is a secondary independent validator, specifically built with the intention of ensuring the performance and robustness of Solana as the network scales.
Alongside growing stability, Solana has seen plenty of mainstream exposure as of late. Two of the most controversial meme coins of the recent news cycle are both hosted on the Solana blockchain: President Donald Trump’s TRUMP and First Lady Melania Trump’s MELANIA. Most of the broader meme coin boom over the last year has taken place on Solana.
The price of SOL has been particularly unstable in recent months, however, as these Solana-based Trump meme coins have fluctuated wildly in price amid uncertainty regarding President Trump’s imposition of tariffs on countries like Canada and Mexico.
Meanwhile, a variety of major investment firms have filed applications to launch Solana-based ETFs, while crypto exchange Coinbase has also announced plans to launch Solana futures trading.
Edited by Andrew Hayward
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Source: https://decrypt.co/304942/solana-price-surge-520-vaneck
