VanEck, one of the top Wall Street asset managers with over $100 billion in assets under management remains bullish that Solana price will rally to $520 in 2025. This optimism comes despite Solana's struggle to reclaim $200 due to inflation concerns that have pushed the price down by 27% from its monthly high.
At press time, SOL trades at $174 after a marginal increase of 0.2%. Top funds and banks believe that despite this lackluster performance, Solana's bull cycle is still intact.
Fund managers, banks, and top analysts have maintained their bullish projections on Solana even as the price faces downward pressure. VanEck, a crypto-friendly asset manager that has also filed for a Solana spot ETF, believes that SOL price could rise to $520 by the end of the year.
At the same time, Bitwise and Standard Chartered anticipate that Solana price could hit $750, while analysts such as Ansem and Borovik are anticipating a rally to $1,000.
Solana is likely to hit these targets if it resumes the impressive rally it recorded at the start of the year. Within the first three weeks of 2025, SOL gained by 74% to an all-time high of $294. However, over the past month, most of these gains have been wiped out.
On February 12, Solana implemented a new priority fee distribution proposal outlined in the Solana Improvement Document (96) (SIMD 96). This proposal has reduced the amount of SOL being burned daily from 17,700 SOL to 1,000 SOL.
SOL's burn rate is down by 94% since this new fee plan came into effect. The reduction has led to Solana inflation rising by 30.5%.
Rising inflation means that more SOL tokens are added to the circulating supply. As supply rises amid reduced demand, it could lead to price weakness that will result in Solana price stalling or experiencing downward momentum.
SOL value today sits around a crucial support zone at the $170 range. The asset is defending this support level despite bearish pressure from sellers reacting to the negative market sentiment.
In his Solana price prediction, analyst LLuciano_BTC noted that SOL is undervalued. He opined that if it can defend this support level successfully, it could rally past its previous record high and possibly reach $340.
Solana may rally to the $340 target price if buyers can successfully defend this support level by buying at this low price. As demand rises and absorbs the additional supply caused by inflation, this rally could occur.
Another factor that could aid a Solana breakout is whale accumulation. In a recent X post, Lookonchain revealed that a Solana whale has withdrawn 134,482 SOL from the Binance exchange in the last three days. This whale later locked away these tokens for staking.