Investment firm %VanEck is forecasting that the price of %Cryptocurrency %Solana (CRYPTO: $SOL) will reach $520 U.S. by the end of this year.
The bullish forecast is nearly 165% above the $197.85 U.S. at which Solana currently trades.
Solana is a %Blockchain platform that uses a proof-of-stake mechanism to provide smart contract functionality.
VanEck sees Solana’s price rising sharply in coming months driven by demand for smart contracts and growth in the M2 money supply.
M2 money supply measures how much money is circulating in the U.S. economy, which tends to influence the crypto market.
M2 money supply includes cash, checking deposits, savings accounts and money market funds.
VanEck expects that the M2 money supply will grow to $22.3 trillion U.S. by the end of 2025 from $21.5 trillion U.S. currently.
When central banks increase the money supply by lowering interest rates or through quantitative easing, more money enters circulation, leading to more liquidity and encouraging riskier investments in assets such as crypto, says VanEck.
At the same time, the investment firm anticipates that the creation and execution of smart contracts will grow by 43% this year to $1.1 trillion U.S.
Currently, Solana controls 15% of the smart contract market, but VanEck expects that share to reach 22% by the end of 2025.
VanEck is one of several U.S. firms that have filed to launch a spot exchange-traded fund (ETF) that will track the price movements of Solana.
Previously, the U.S. Securities and Exchange Commission (SEC) had refused to acknowledge ETF applications and proposals related to Solana.
However, the SEC has just acknowledged a filing by investment firm Grayscale for a Solana ETF and has set an October deadline to approve or reject the application.
Solana’s price has nearly doubled (up 93%) over the last 12 months.
