- VanEck has predicted that Solana (SOL) could hit a price tag of $520 by the end of the year.
- The firm predicted that SOL’s share in the smart contract platform sector would soar from 15% to 22%.
- VanEck also expects a 43% surge in the market cap of the SCP sector in the coming days.
VanEck, the asset management firm with an AUM of $113 billion, has predicted that SOL, the native token of the Solana blockchain, could hit a price tag of $520 by the end of the year.
Meanwhile, the altcoin has already crashed 20% in the past week and trades at $190 at the time of this writing with a valuation of $93 billion, shows CoinMarketCap.
VanEck’s Bullish Prediction: The Reasoning
VanEck’s bullish prediction is based on the possible surge in Solana’s share in the broader smart contract platform (SCP) market. The valuation of the SCP sector depends on the M2 supply (basically, the total amount of money circulating in the economy), and the asset management firm forecasts the M2 supply will grow to $22.3 trillion by 2025, maintaining a steady 3.2% annual growth rate since its last trough in October 2023.
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Using regression analysis (a way to find relationships between different things), VanEck showed a strong statistical relationship between M2 supply and SCP market cap. The firm expects a 43% increase in valuation of the SCP sector by the end of 2025, reaching $1.1 trillion—surpassing its 2021 peak of $989 billion.
In such a scenario, the SOL token is expected to hit a market cap of $250 billion, reaching a price of $520 per token as the dominance of Solana soars in various key areas, such as decentralized exchange (DEX) volumes, revenues, and active users. Also, VanEck forecasted that SOL’s share in the SCP space will rise from 15% to 22% by the end of the year.
Solana (SOL) Price Analysis: Key Levels to Watch
The Solana price analysis on the chart below shows that the Relative Strength Index (RSI) for the altcoin reads a value of 38.52, which means that the bears are currently in control of the SOL price action. Meanwhile, the gradient of the line suggests consolidation between $190 and $200 price levels.
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The MACD indicator, on the other hand, is showing decreased bearish strength as the signal line (red) and the MACD line (blue) are coming closer. The bearish intensity of the MACD histogram is also going down.
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