Solana Surges Past Ethereum in Developer Growth, Payments, and DeFi, Says 21Shares

Ethereum

Solana Surges Past Ethereum in Developer Growth, Payments, and DeFi, Says 21Shares

Solana (SOL) has officially taken the lead as 2025‘s fastest-growing Layer 1 blockchain, according to 21Shares’ State of Crypto report, surpassing Ethereum in developer activity while scaling across DeFi, payments, and even artificial intelligence integrations.

In just the first two months of 2025, Solana recorded $364 billion in transaction volume—more than both Ethereum and Coinbase combined. The network now supports over 100 million monthly active users, driven by its lightning-fast performance (sub-second finality) and ultra-low fees (under $0.01).

Key institutional players have taken notice. 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.

Stablecoin Supply Up 600%, AI and Institutional Demand Rising

Solanas stablecoin supply has surged 600% year-over-year, now sitting at over $12 billion as of Q1 2025. This explosion reflects rising utility across AI applications, payments, and broader Web3 services.

While the report flags concerns like validator centralization and the end of transaction fee burns, it argues these risks are outweighed by Solanas growth potential.

Undervalued？ Price Models See SOL Hitting $1,800

Using a discounted cash flow model, 21Shares estimates Solana‘s fair value between $520 and $1,800, depending on network adoption and usage expansion. That’s a sharp upside from its current trading range near $150.

If Solana captures even half of Ethereums market cap, analysts believe it could continue dominating in payments, AI, and institutional integrations—solidifying its place as a top-tier Layer 1 chain.