Odaily Planet Daily News: According to a recent report by VanEck, Solana (SOL) currently accounts for 15% of the market value of smart contract platforms (SCP), and is expected to rise to 22% by the end of 2025, which could push SOL's price up to $520.
Solana's market value growth is attributed to its strong developer influence, DEX trading volume share, revenue, and continuously growing active user base.
VanEck's valuation model links Solana's expected SCP market share to the growth of the US M2 money supply, which has traditionally been associated with cryptocurrency market capitalization. M2 includes cash, checking deposits, and short-term investments, and is a broad measure of money supply in the United States and the eurozone. It is expected that by the end of 2025, the M2 money supply will reach $22.3 trillion, maintaining an annualized growth rate of 3.2% since October 2023.
Regression analysis shows that by the end of 2025, the total market value of SCP will increase by 43%, reaching $1.1 trillion, surpassing the peak of $989 billion in 2021.
VanEck used an autoregressive (AR) model to estimate that Solana's market value could reach approximately $250 billion. Given that there are 487 million circulating tokens, this means SOL's target price is $520.