Analyst Raises Price Target for Solana (SOL) to $480 by 2025: Here’s Why
Popular Analyst Raises Price Target for Solana (SOL) to $480 by 2025, $800 High-End Estimate
In a bold prediction, a well-known analyst has raised his price target for Solana (SOL) to $480 by the end of 2025, with a high-end estimate reaching $800. This forecast is based on key metrics such as Solana’s supply, market cap, and its growing market dominance.
Currently, Solana has a supply of 579 million tokens with an annual inflation rate of 5.2%. By the end of 2025, this supply is expected to increase to approximately 625 million tokens. In terms of market capitalization, the analyst projects that Bitcoin will reach a price of $250,000 by 2025, resulting in a market cap of around $5 trillion. Assuming Bitcoin maintains a 50% dominance in the cryptocurrency market, this suggests a total market cap for all cryptocurrencies of $10 trillion.
Solana’s market dominance has been steadily increasing, from 0.75% to 3% over the past year. If it remains at this level, Solana’s market cap would be $300 billion, leading to a price target of $479 per token. However, if Solana’s dominance increases to 5%, the price could potentially reach $800 per token.
The analyst stated, “I had estimated a price of $240 to $250 based on a lower market dominance assumption for Solana. However, with its current growth, I now expect Solana’s price to reach around $480, assuming a 3% market dominance. If Solana’s market dominance increases to 5%, the price could potentially reach $800.”
The reason behind this massive prediction lies in Solana’s success in retail adoption, driven by two major factors: the Solana Mobile initiative and Solana Pay. Solana Mobile offers a mobile-first app store for decentralized applications, making it easier for new users to access and use crypto. This focus on mobile experience has led many new users to choose the Phantom wallet over other options like Metamask or Coinbase.
Solana Pay, a micropayment solution supporting SOL tokens and stablecoins like USDC and USDT, has been integrated with Shopify for over a year. Recently, it introduced new features such as Solana Actions and blockchain links (Blinks), driving Solana’s increased retail adoption and enhancing its overall user experience.
With these initiatives in place and Solana’s growing market dominance, the analyst’s bullish price targets for SOL seem within reach as the cryptocurrency market continues to evolve.
