Solana To $520? Investment Firm Drops Bombshell SOL Prediction
Vaneck, a global investment management company with a nearly 70-year history, enjoys a high reputation in the exchange-traded fund (ETF) arena, has released amazing targets for Solana (SOL). exist postal The New York-based company shared on X on January 6, and expects Solana’s value to soar to $520 by the end of 2025.
Vaneck forecasts $520 for Solana by the end of 2025
Vaneck’s paper focuses on Solana’s share in the Smart Contract Platform (SCP) market and the historical correlation between crypto market capitalization and U.S. growth. M2 money supply. According to the company:
“By the end of 2025, our Solana price target is $520. We value Solana (Sol) based on its projected year-end market share in the Smart Contract Platform (SCP) market. Our SCP market cap forecast comes from us M2 currency supply Given its close correlation with Crypto market capitalization, growth. ”
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Vaneck’s analysis predicts that M2 (a measure of cash, check deposits and easy-to-convert currency in the U.S. currency supply) will reach $22.3 trillion in the second half of 2025. This figure assumes an annual growth rate maintained from the previous slot of 3.2% October 2023. Citation regression analysis, Vaneck estimates:
“We will take M2’s projected to end 2025 to end 22.3 tons, maintaining its annual growth rate of 3.2% since the last slot in October 2023. Using regression analysis, we estimate that the SCP market cap will grow by 43% to 1.1 tons Year ($770B today), surpassing its 2021 peak of $989B.”
The company noted that “a close correlation between M2 and SCP market capitalization” was 0.36 and the T statistic was 5.7 (P < 0.0001). Currently, Solana has about 15% of the SCP market capitalization. However, Vaneck expects a significant increase in the percentage by 2025:
“Currently, Solana holds 15% of SCP’s market cap, but we predict that EOY’s share will grow to 22% in 2025. This forecast is backed by Solana’s developers, increasing the volume of DEX, Income and market share of income and income. Active users. ”
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By combining this expected market share with an automatic regression (AR) prediction model, Vaneck believes Solana’s market cap will climb to about $250 billion, which will be based on an estimated 486 million tokens that will generate $520 per time per day People price.
Short-term sol price analysis
However, for the time being, Solana continues its correction phase, with the price trading price of $189 as of press time. The 4-hour chart of SOL/USDT shows a well-defined down channel characterized by a series of lower highs and lower lows.
SOL’s price action has been limited to downstream channels since January 18, with the two parallel trend lines highlighting ongoing sales pressure. The lower boundary of the channel is currently close to $175, which is immediately supported, while the upper boundary is close to $215, which is resistor.
It is worth noting that SOL is currently below the middle line of the downward channel. If you cannot exceed this level Recentmovement toward the lower boundary of the channel may occur. Additionally, SOL continues to struggle to retrace Fibonacci retry levels, with the 0.236 return ($203.40) being the first major resistance.
At press time, Sol traded for $190.
Featured images from Shutterstock, charts from TradingView.com
