Solana (SOL) Surpasses Ethereum in Developer Growth, Payments, and DeFi, Says 21Shares

(SOL) has officially taken the lead as 2025's fastest-growing Layer 1 blockchain, according to 21Shares' State of Crypto report, surpassing Ethereum

Solana (SOL) has quietly surged past Ethereum in key metrics, notably developer activity, to become 2025’s fastest-growing Layer 1 blockchain, according to the latest 21Shares State of Crypto report.

This stellar performance is being driven by Solana’s unique strengths in payments, decentralized finance (DeFi), and now, even artificial intelligence (AI) integrations, as large institutions like Visa, Shopify, Stripe, PayPal, and First Digital are increasingly settling stablecoin transactions and deploying capital in the Solana ecosystem.

Surprises in the Solana Ecosystem

The report, which offers a broader view of the crypto market, also highlights surprising trends like a 600% year-over-year increase in Solana’s stablecoin supply, now exceeding $12 billion by Q1 2025.

This explosion in stablecoins is fuelling new use cases across AI applications, payments, and broader Web3 services on the Solana network.

The report does acknowledge some risks, such as validator centralization and the recent termination of transaction fee burns. However, the authors maintain that these drawbacks are outweighed by Solana’s massive growth potential.

Solana Surpasses Both Coinbase and Ethereum in Transaction Volume

In just the first two months of 2025, Solana's transaction volume already surpasses both Coinbase and Ethereum, the report notes. With over 100 million monthly active users, Solana boasts lightning-fast performance—achieving finality in under a second—and ultra-low fees of less than $0.01.

This stellar performance has not gone unnoticed by key institutional players. Visa, Shopify, and Stripe are actively settling stablecoin transactions on SOL, while PayPal and First Digital reportedly hold over $100 million in Solana-native assets.

Furthermore, Solana's stablecoin supply has surged 600% year-over-year, now sitting at over $12 billion as of Q1 2025. This explosion in stablecoins reflects the rising utility of Solana for AI applications, payments, and broader Web3 services.

The report does flag concerns like validator centralization and the recent termination of transaction fee burns. However, the authors argue that these risks are outweighed by Solana's growth potential.

Undervalued? Price Models See SOL Hitting $1,800

Using a discounted cash flow model, 21Shares estimates Solana's fair value to be between $520 and $1,800, depending on network adoption and usage expansion. This estimate is a significant multiple of the cryptocurrency's current trading range, which is closer to $150.

The report also highlights that if Solana were to capture even half of Ethereum's market cap, it would continue to dominate in payments, AI, and institutional integrations, ultimately solidifying its place as a top-tier Layer 1 chain.