Solana to Hit $520? 🚀

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Oh my, oh me! The clever folks at VanEck have made a rather bold prediction, don’t you think? They’re saying that Solana (SOL) will soar to a whopping $520 by the end of this year! 🤯 But, you may ask, what makes them so sure? Well, it’s all about the M2 Money Supply, my curious companions! 💸

The VanEck Bull Case for Solana

Matthew Sigel and Patrick Bush, the dynamic duo of digital assets research, have been crunching numbers and sipping tea (or perhaps something stronger 🍵) to come up with this forecast. They claim that the M2 Money supply will have a profound impact on Solana’s price growth. And, might I add, they’re not just pulling numbers out of thin air! 🔮

Using their fancy regression analysis, they’ve estimated that the SCP market cap will grow by a staggering 43% to $1.1 trillion by the end of 2025. And, as Solana holds 15% of the smart contract platform valuation, they predict that this value will jump to 22% by year-end. 🚀

“This projection is supported by Solana’s developer dominance, increasing market share in DEX volumes, revenues, and active users. Using an autoregressive (AR) forecast model, we estimate Solana’s market cap will reach ~$250B, implying a SOL price of $520 based on ~486M floating tokens,” the researchers wrote. 📊

Solana Growth Catalysts

Now, you may be wondering what’s behind Solana’s growth spurt. Well, my inquisitive friends, it’s all about the ecosystem! 🌿 Solana is a protocol with a functional and growing ecosystem, and it’s not just about the memecoins (although, let’s be honest, who doesn’t love a good meme? 🤣). Platforms like Pump Fun have helped refocus the protocol on growth, and it’s paying off! 📈

Today, Solana boasts of top memecoins like TRUMP and MELANIA that hit high valuations in days, attracting new mainstream users. And, if that’s not enough, the ecosystem recorded an $840 million ecosystem app revenue, which jumped by 213% in Q4 2024. 🚀

According to Messari’s report, this growth refers to the memecoin revolution. And, let’s not forget about the Decentralized Finance (DeFi) on Solana, which is very robust indeed! 💪 Data from DeFiLlama pegs the DeFi Total Value Locked (TVL) at $19,54 billion.

SOL ETF and Current Price Outlook

Now, here’s the thing: with a pro-crypto administration in the US, there’s a high chance that a SOL ETF will gain approval this year. 🤞 And, guess what? VanEck is in the race to get approval for these products as well! 🏃‍♂️

At the time of writing, Solana’s price is facing a drawdown, triggered by the drop in BTC market valuation below the $98,000 mark. SOL is changing hands at $190.04, down by 4.6% in the past 24 hours. But, don’t worry, my friends! The VanEck prediction is still within reach… or is it? 🤔

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2025-02-06 23:43