21Shares predicts Solana will become a cornerstone of digital finance.

Solana (SOL) has become the leading Layer 1 blockchain in 2025, outpacing Ethereum (ETH) in terms of developer activity and making strides in decentralized finance (DeFi), payment technologies, and artificial intelligence, as reflected in 21Shares’ recent report.

During the first two months of the year, Solana recorded a staggering $364 billion in transaction volume, outperforming both Ethereum and Coinbase, and is now home to over 100 million active users each month.

With transaction fees averaging less than $0.01 and lightning-fast finality, Solana’s rapid and inexpensive infrastructure is attracting both crypto enthusiasts and large organizations.

Companies like Visa, Shopify, and Stripe are now utilizing Solana for stablecoin transactions, while PayPal and First Digital manage over $100 million worth of Solana assets.

The volume of stablecoins on the network has surged by 600% year-over-year, surpassing $12 billion by the end of the first quarter.

Growth in DeFi, memecoins, and AI

Solana’s DeFi ecosystem has expanded significantly, with total value locked rising to $8 billion—double that of 2024—and now representing 16% of Ethereum’s market share, reducing the previous 20:1 ratio to just 5:1.

The network features three of the top ten decentralized exchanges (DEXs) by trading volume and ranks third globally for stablecoin market capitalization.

Memecoins play a substantial role in this growth, making up more than half of the on-chain activity. The launch of the Official TRUMP token earlier this year resulted in $30 billion in trades within just 48 hours, briefly elevating Solana’s performance to levels comparable to Nasdaq.

In addition to speculative interest, the network is swiftly advancing in infrastructure and AI. Solana leads the decentralized physical infrastructure network (DePIN) space with a market cap of $4.2 billion, supporting projects like Helium and Hivemapper.

Solana also holds a significant share of the crypto-AI market, accounting for 66% of AI-related activity and increasing utilization of tools like ElizaOS and Arc.

Valuation models indicate substantial growth potential

The report expresses increasing concerns regarding validator centralization, speculative behavior, and inflationary pressures following the suspension of transaction fee burns.

Nonetheless, it argues that Solana is still fundamentally undervalued. A discounted cash flow model estimates SOL’s fair value to be between $520 and $1,800, based on varying growth scenarios, significantly higher than its current price of approximately $150.

If Solana were to capture just 50% of Ethereum’s market cap, it could continue to flourish in payments, AI, and institutional involvement.

The analysis concludes that Solana is positioned as a top contender in the Layer 1 blockchain sector and holds the potential to become the foundational infrastructure for next-gen blockchain applications.

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