Solana (SOL) has quickly emerged as the leading Layer 1 blockchain in 2025, outpacing Ethereum (ETH) in developer growth and making significant strides in DeFi, payments, and AI, as outlined in 21Shares’ latest State of Crypto report.
In just the first two months of the year, Solana has processed an impressive $364 billion in volume, surpassing both Ethereum and Coinbase. Furthermore, the network now boasts over 100 million monthly active users, showcasing its growing popularity.
One of the key advantages of Solana is its high-speed, low-cost architecture, with average fees under $0.01 and sub-second transaction finality. This efficiency has attracted a wide range of users, from crypto enthusiasts to major institutions.
Major players like Visa, Shopify, and Stripe are now settling stablecoin payments on Solana, while companies like PayPal and First Digital hold over $100 million in Solana-native assets. The stablecoin supply on the network has seen a 600% increase year-over-year, exceeding $12 billion by the end of the first quarter.
In terms of DeFi, memecoins, and AI, Solana has seen significant growth. The DeFi ecosystem on Solana now boasts $8 billion in total value locked, up 100% from the previous year. It hosts three of the top 10 DEXs by volume and ranks third globally in stablecoin market cap.
Memecoins have also played a significant role in driving activity on the network, with the Official TRUMP token generating $30 billion in trades over 48 hours earlier this year. In addition to memecoins, Solana is expanding into infrastructure and AI, leading all chains in DePIN market cap at $4.2 billion and dominating the crypto-AI segment.
Despite concerns around validator centralization, speculative activity, and inflationary pressure, Solana is considered fundamentally undervalued. Valuation models suggest a fair value for SOL between $520 and $1,800, indicating significant upside potential.
As Solana continues to gain ground in payments, AI, and institutional adoption, it is positioned as the primary competitor in the Layer 1 space and the foundation of next-generation blockchain infrastructure.
At the time of writing, Solana is ranked #6 by market cap, with a market capitalization of $92.81 billion and a 24-hour trading volume of $4.52 billion. The total crypto market is valued at $3.37 trillion, with Bitcoin dominance at 61.39%.
In conclusion, Solana’s rapid growth and expanding ecosystem position it as a key player in the blockchain space, with continued potential for growth and innovation in the future.