Solana (SOL) has emerged as the fastest-growing Layer 1 blockchain of 2025, surpassing Ethereum (ETH) in developer growth and gaining ground across DeFi, payments, and AI, according to 21Shares’ latest State of Crypto report.
In the first two months of the year alone, Solana processed $364 billion in volume, more than Ethereum and Coinbase, and now supports over 100 million monthly active users.
With average fees under $0.01 and sub-second transaction finality, Solana’s high-speed, low-cost architecture is driving adoption from both crypto-native users and major institutions.
Visa, Shopify, and Stripe are now settling stablecoin payments on Solana, while PayPal and First Digital hold over $100 million in Solana-native assets.
Stablecoin supply on the network has jumped 600% year-over-year, exceeding $12 billion as of the end of the first quarter.
DeFi, memecoins, and AI push
Solana’s DeFi ecosystem has grown to $8 billion in total value locked, up 100% from 2024, and now accounts for 16% of Ethereum’s market share, narrowing a once 20:1 gap to 5:1.
It hosts three of the top 10 DEXs by volume and ranks third globally in stablecoin market cap.
Memecoins remain a key driver of activity, contributing more than half of on-chain volume. The Official TRUMP token launched earlier this year generated $30 billion in trades over 48 hours, temporarily pushing Solana’s throughput to levels rivaling Nasdaq.
Beyond speculation, the network is rapidly expanding into infrastructure and AI. Solana leads all chains in DePIN market cap at $4.2 billion, supporting projects like Helium, Hivemapper, and Render Network.
Solana also dominates the crypto-AI segment, with 66% of AI agent activity and growing adoption of tools like ElizaOS and Arc.
Valuation models suggest significant upside
The report highlights rising concerns around validator centralization, speculative activity, and inflationary pressure following the end of transaction fee burns.
However, the report argued that Solana remains fundamentally undervalued. A discounted cash flow model projects SOL’s fair value between $520 and $1,800, depending on growth rates, far above its current price of around $150.
If Solana captures just half of Ethereum’s market cap, it could see continued growth in payments, AI, and institutional adoption.
The report concluded that Solana is positioned as the primary Layer 1 competitor and the backbone of next-generation blockchain infrastructure.
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