[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"news-aggregator-vaneck-forecasts-3percent-mark650194d875-2b78-7d01-b070-5aa7d7d720ff":3},{"id":4,"timestamp":5,"title":6,"content":7,"link":8,"preview":9,"tags":10,"predictedTags":11,"showTags":12,"source":13,"reactions":14,"selfReactions":15,"logo":16,"sourceId":17,"sourceUserId":18,"asset":19,"tagsCategories":20,"totalComments":21,"lang":22,"unique_views_count":23,"enrichStatus":19,"triageKind":18,"triageImportance":18,"expandEligible":18,"summarizeEligible":18,"eventEligible":18,"eventType":18,"eventAction":18},"vaneck-forecasts-3percent-mark650194d875-2b78-7d01-b070-5aa7d7d720ff","1738798232000","VanEck forecasts 3% market cap growth for Solana, $520 price by 2025-end","\u003Cp>\u003Cspan>Solana (\u003Ca href=\"https://cryptoslate.com/coins/solana/\">SOL\u003C/a>) \u003C/span> currently accounts for 15% of the smart contract platform (SCP) market capitalization, with projections indicating a rise to 22% by the end of 2025, which could push SOL’s price to $520, according to a recent report by \u003Cspan> \u003Ca href=\"https://cryptoslate.com/companies/vaneck/\">VanEck\u003C/a>.\u003C/span>\u003C/p>\u003Cp>Solana’s market cap expansion is driven by its strong developer presence, increasing share of decentralized exchange (DEX) volumes, rising revenue, and growing active user base.\u003C/p>\u003Cp>VanEck’s valuation model ties Solana’s expected SCP market share to the U.S. M2 money supply growth, which has historically correlated with crypto market capitalization. M2 includes cash, checking deposits, and short-term investments and serves as a broad measure of money supply in the US and eurozone.\u003C/p>\u003Cp>The M2 money supply is projected to reach $22.3 trillion by the end of 2025, maintaining a 3.2% annualized growth rate since October 2023.\u003C/p>\u003Cp>Regression analysis suggests total SCP market capitalization will grow 43% to $1.1 trillion by the end of 2025, surpassing its 2021 peak of $989 billion.\u003C/p>\u003Cp>Using an autoregressive (AR) model, VanEck estimated that Solana’s market capitalization could reach approximately $250 billion. With 486 million floating tokens, this implies a SOL price target of $520.\u003C/p>Scaling revenue\u003Cp>\u003Cspan>Solana has gained prominence among layer-1 blockchains, leading in DEX volumes (45% market share), chain revenues (45%), and daily active wallets (33%) as of January 2024. \u003C/span>\u003C/p>\u003Cp>\u003Cspan>VanEck projected that \u003C/span>\u003Cspan>Solana’s expected revenue could reach an annualized rate of $6 billion if the current trend continues. \u003C/span>\u003Cspan>The network’s revenue comes from three primary sources: base fees, priority fees, and maximal extractable value (MEV).\u003C/span>\u003C/p>\u003Cp>\u003Cspan>The base fees represent the minimum network usage cost and amounted to 1% of Solana’s January revenue. Meanwhile, the priority fees are tips users pay for faster transaction inclusion, totaling 43% of the network’s revenue.\u003C/span>\u003C/p>\u003Cp>\u003Cspan>MEV represented most of Solana’s revenue last month, as 56% was secured through fees earned by block builders optimizing transaction execution.\u003C/span>\u003C/p>Boosting MEV\u003Cp>\u003Cspan>Solana’s MEV revenue structure allows block builders to capture 60% of MEV value, with validators retaining 40%. \u003C/span>\u003Cspan>If validators were to capture 80% of MEV, mirroring \u003Ca href=\"https://cryptoslate.com/coins/ethereum/\">Ethereum’s\u003C/a> structure, MEV-derived revenue could increase from $3.4 billion to $6.8 billion, a 56% rise in SOL’s validator revenue. \u003C/span>\u003C/p>\u003Cp>\u003Cspan>The report highlighted that improvements to Solana’s Jito system, protocol enhancements, and the implementation of Firedancer could further facilitate the growth. \u003C/span>\u003C/p>\u003Cp>\u003Cspan>However, in its current state, Solana’s MEV capture is inefficient due to private memory pools and insider advantages. \u003C/span>\u003C/p>\u003Cp>\u003Cspan>Approximately 92% of validators use Jito’s MEV auction software, yet many also engage in private mempools, giving some traders a competitive edge. Addressing this issue could enhance Solana’s MEV revenue capture.\u003C/span>\u003C/p>\u003Cp>\u003Cspan>The report proposed solutions, including validator whitelists to prevent collusion, application-level MEV protections to reduce front-running, RFQ (Request-for-Quote) systems to enhance pricing transparency on DEXs, and software patches to mitigate known attack vectors.\u003C/span>\u003C/p>\u003Cp>\u003Cspan>Additionally, a multi-leader model allowing multiple validators to propose blocks simultaneously would reduce dominant block builder influence.\u003C/span>\u003C/p>Dapp growth\u003Cp>\u003Cspan>Solana’s application ecosystem has expanded, overtaking Ethereum in decentralized application revenue. In 2022, Ethereum dapps generated 84% of all revenue, while Solana accounted for 0.26%. By 2024, Ethereum’s share fell to 32%, while Solana’s rose to 42%. \u003C/span>\u003C/p>\u003Cp>\u003Cspan>Solana’s dapp revenue surged from $4 million in 2022 to $1.25 billion in 2024. The network has also become a primary destination for developers, adding 7,625 new developers in 2024, compared to Ethereum’s 6,456.\u003C/span>\u003C/p>\u003Cp>\u003Cspan>If MEV optimizations are successfully implemented, Solana’s validator revenue could increase significantly, supporting greater demand for SOL and positioning its price over $500 by the end of the year.\u003C/span>\u003C/p>\u003Cp>The post \u003Ca href=\"https://cryptoslate.com/vaneck-forecasts-3-market-cap-growth-for-solana-520-price-by-2025-end/\">VanEck forecasts 3% market cap growth for Solana, $520 price by 2025-end\u003C/a> appeared first on \u003Ca href=\"https://cryptoslate.com\">CryptoSlate\u003C/a>.\u003C/p>","https://cryptoslate.com/vaneck-forecasts-3-market-cap-growth-for-solana-520-price-by-2025-end/","https://cryptoslate.com/wp-content/uploads/2025/01/solana-crypto-trader.jpg","[\"Analysis\",\"Crypto\",\"DeFi\",\"Featured\"]","[\"Ethereum\",\"ETH\",\"Solana\",\"SOL\",\"SOL\",\"Base\",\"BASE\",\"Jito\",\"DEX\",\"Market\",\"Auction\"]","[{\"img\":\"https://toscalepublic.s3.eu-west-2.amazonaws.com/images/coins-lib/full-library/color/ETH.png\",\"name\":\"ETH\"},{\"img\":\"https://toscalepublic.s3.eu-west-2.amazonaws.com/images/coins-lib/full-library/color/SOL.png\",\"name\":\"SOL\"},{\"img\":\"https://toscalepublic.s3.eu-west-2.amazonaws.com/images/coins-lib/full-library/color/BASE.png\",\"name\":\"BASE\"},{\"name\":\"Jito\",\"logo\":\"https://toscalepublic.s3.eu-west-2.amazonaws.com/images/protocols/jito.png\"},{\"name\":\"DEX\",\"logo\":\"https://toscalepublic.s3.eu-west-2.amazonaws.com/images/protocols/dex.png\"},{\"name\":\"Market\",\"logo\":\"https://toscalepublic.s3.eu-west-2.amazonaws.com/images/protocols/market.png\"},{\"name\":\"Auction\",\"logo\":\"https://toscalepublic.s3.eu-west-2.amazonaws.com/images/protocols/auction.png\"}]","65",[],[],"https://toscalepublic.s3.eu-west-2.amazonaws.com/images/news-feeds/sources/cryptoslate.png","CryptoSlate",null,"","[\"Crypto\"]","0","EN","1"]