Solana Poised to Dominate Digital Finance—21Shares Report Signals Paradigm Shift

Move over, Ethereum—Solana’s blistering speed and plunging transaction costs are rewriting the rules of DeFi. 21Shares’ latest analysis suggests the network isn’t just surviving crypto winter; it’s building the infrastructure for the next bull run.

Why institutions are betting big: While legacy chains gasp under $50 NFT minting fees, Solana settles 2,000 transactions for the price of a Starbucks espresso. The kicker? Its modular design actually scales without begging validators for mercy.

The cynical footnote: Of course Wall Street’s suddenly interested—nothing gets bankers hot like a blockchain that can handle their high-frequency trading addictions. Welcome to decentralization, sponsored by Citadel.

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.