Solana (SOL) Currently, 15% of the market capitalization of the Smart Contract Platform (SCP), with projections that interpret an increase of 22% by the end of 2025, which could push the price from Sol to $ 520, according to a recent report of Vaneck.
The expansion of the market capitalization of Solana is powered by the strong presence of the developer, which increases the share of decentralized Exchange (DEX) volumes, rising income and a growing active user base.
Vaneck’s valuation model connects the expected SCP market share of Solana to the American M2 money amount of growth, which is historically correlated with crypto market capitalization. M2 includes cash, checking deposits and short -term investments and serves as a broad measure for money supply in the US and the eurozone.
The M2 money amount is expected to reach $ 22.3 trillion by the end of 2025, which maintains a growth rate of 3.2% since October 2023.
Regression analysis suggests that the total SCP market capitalization will grow by 43% to $ 1.1 trillion by the end of 2025, which surpasses the peak of $ 989 billion from 2021.
With the help of a auto -briefy (AR) model, Vaneck estimated that the market capitalization of Solana could reach around $ 250 billion. With 486 million floating tokens, this implies a SOL race objective of $ 520.
Scale outputs
Solana has been given a prominent place at low-1 block chains, leading in Dex volumes (45%market share), chain income (45%) and daily active portfolios (33%) from January 2024.
Vaneck has projected that The expected income from Solana can reach an annual rate of $ 6 billion if the current trend continues. The turnover of the network comes from three primary sources: basic costs, priority costs and maximum extremely value (MEV).
The basic costs represent the minimum network use costs and amounted to 1% of Solana’s income in January. In the meantime, the priority costs that users pay for faster transaction inclusion are a total of 43% of the network’s turnover.
MEV represented the most income from Solana last month, because 56% were protected by costs earned by block builders who optimized the implementation of the transaction.
MEV BOOST
With the MEV income structure of Solana, block builders can capture 60% of the MEV value, whereby Validators retain 40%. If validators would conquer 80% of MEV, reflecting the structure of Ethereum, MEV-Dedicated Turnover can increase from $ 3.4 billion to $ 6.8 billion, an increase of 56% in Sol’s Validator income.
The report emphasized that improvements in the JITO system of Solana, Protocol improvements and the implementation of Firedancer can further facilitate growth.
In its current state, however, the MEV recording of Solana is inefficient due to private memory pools and benefits for Insider.
About 92% of the validators use Jito’s MEV auction software, but many also participate in private mempools, giving some traders a competitive advantage. Tackling this problem can improve the MEV income shelter from Solana.
The report suggested solutions, including Validator WHitelisten to prevent collusion, MEV protection at the application level to reduce the front running, RFQ (Request-for-Quote) systems to improve the price transparency on Dexs, and software patches to be known attack vectors to mitigate.
Moreover, a multi-guide model with which several validators can present blocks at the same time would reduce the influence of dominant block builder.
Dapp growth
The application system of Solana has been expanded, so that Ethereum is overtaken in decentralized application income. In 2022, Ethereum Dapps generated 84% of all turnover, while Solana was good for 0.26%. By 2024, the share of Ethereum fell to 32%, while Solana rose to 42%.
The Dapp income from Solana rose from $ 4 million in 2022 to $ 1.25 billion in 2024. The network also became a primary destination for developers and added 7,625 new developers in 2024 compared to the 6,456 of Ethereum.
If MEV optimizations are successfully implemented, the Validator income from Solana can increase considerably, to support a greater demand for SOL and its price at the end of the year.
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