tl;dr
Polygon’s zero-knowledge chain, zkEVM, acquired via the $250 million Hermez purchase in 2021, has seen little progress and operates at an annual loss exceeding $1 million. Development has been quietly discontinued, and zkEVM was never upgraded to include Ethereum’s Blob data structure. Leadership ch...
Polygon's zero-knowledge chain zkEVM, acquired through the $250 million purchase of Hermez in 2021, has experienced stagnating development and is operating at an annual loss exceeding $1 million. Despite initial promise, the project has seen little meaningful progress, with development reportedly “quietly discontinued” and key upgrades, such as the adoption of Ethereum’s Blob data structure, never implemented. Leadership changes at Polygon have consolidated focus away from zkEVM toward proof-of-stake systems and new ventures like AggLayer, marginalizing zkEVM’s role within the broader ecosystem.
The total value locked (TVL) in zkEVM peaked at $187 million in March 2024 but then sharply declined by nearly 80%, falling to $16.25 million in 2025. This steep descent reflects the dwindling interest and support for the chain amid ongoing losses and stagnation. Polygon's CEO, Sandeep Nailwal, now the sole active founding member after the departure of others, is overseeing structural shifts that appear to hasten the sunsetting process. Although the official timeline targets the chain’s shutdown by 2026, evidence suggests a quiet wind-down is already underway.
Once heralded as a key milestone in zero-knowledge scaling technology for Polygon, zkEVM's diminished role highlights the challenges inherent in sustaining ambitious blockchain projects in a rapidly evolving market. The pivot toward proof-of-stake solutions and AggLayer innovations signals a strategic reallocation of resources, underscoring the need to adapt to shifting priorities within decentralized finance infrastructure.