tl;dr
VanEck predicts a 3% increase in market cap for Solana by the end of 2025, potentially driving the price to $520. This projection is based on factors such as the platform's developer presence, decentralized exchange volumes, and active user base. The forecast ties Solana's market share to the U.S. M...
VanEck forecasts a 3% market cap growth for Solana by the end of 2025, projecting a rise to 22% of the smart contract platform market capitalization, potentially pushing SOL's price to $520. This projection is based on factors such as the platform's developer presence, decentralized exchange volumes, and active user base.
Solana's market cap expansion is driven by strong developer presence, increasing decentralized exchange volumes, rising revenue, and a growing active user base, tied to U.S. M2 money supply growth. The forecast ties Solana's market share to the U.S. M2 money supply growth, which is expected to reach $22.3 trillion by 2025.
Solana's expected revenue could reach an annualized rate of $6 billion, with revenue sources from base fees, priority fees, and maximal extractable value (MEV). The MEV revenue structure allows for potential revenue increase if validators capture 80% of MEV, with proposed solutions to enhance Solana's MEV revenue capture.
Solana's application ecosystem has overtaken Ethereum in decentralized application revenue, with a surge in dapp revenue and increased developer adoption, potentially supporting SOL's price over $500 by 2025-end.
Solana (SOL) 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 VanEck.
Solana has gained prominence among layer-1 blockchains, leading in DEX volumes, chain revenues, and daily active wallets as of January 2024. VanEck projected that Solana's expected revenue could reach an annualized rate of $6 billion if the current trend continues.
Solana's MEV revenue structure allows block builders to capture 60% of MEV value, with validators retaining 40%. If validators were to capture 80% of MEV, mirroring Ethereum's structure, MEV-derived revenue could increase from $3.4 billion to $6.8 billion, a 56% rise in SOL's validator revenue.
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%. Solana's dapp revenue surged from $4 million in 2022 to $1.25 billion in 2024.