U.S. investment giant VanEck has made a bold prediction: Solana (SOL) could hit $520 by the end of 2025. In a post on X (formerly Twitter), the firm shared that its autoregressive (AR) forecast model estimates Solana’s market cap will surge to $250 billion, pushing the token’s price up dramatically. With 486 million floating SOL tokens, this translates to a 165% price jump from where it currently sits.

At the moment, Solana trades at around $195.5, having dipped 3.5% in the past 24 hours, according to The Block’s crypto price tracker. Over the last year, however, SOL has seen an impressive 102% growth, making it the fifth-largest cryptocurrency with a market cap of $94.1 billion.

What’s Driving This Prediction?

VanEck bases its valuation on Solana’s anticipated market share in the smart contract platform (SCP) space. The firm believes crypto prices closely correlate with the U.S. M2 money supply—which includes cash, checking deposits, and easily accessible savings. With M2 expected to hit $22.3 trillion this year, VanEck predicts the SCP market cap will grow by 43%, reaching an all-time high of $1.1 trillion.

More importantly, they expect Solana’s share of this market to grow from 15% to 22%, fueled by developer adoption, rising DEX trading volumes, increasing revenues, and an expanding user base.

Is This Another Overhyped Prediction?

While the numbers sound exciting, VanEck has a history of making overly optimistic crypto forecasts. Back in 2022, senior analyst Patrick Bush predicted Cosmos (ATOM) could hit $1,400 by 2030—only for the firm to later revise that figure to $140. Right now, ATOM is sitting at just $4.5.

So, is Solana really heading for a massive 165% gain this year, or is this just another overambitious crypto call? While Solana’s ecosystem is undeniably growing, and its network has become a favorite among developers, predicting a $520 price tag in under a year seems like a stretch. As always, investors should take such projections with a grain of salt.

One thing’s for sure—2025 will be an interesting year for Solana and the entire crypto market. 🚀