Polygon Unveils a New Strategy: Is It Over for POL?

Polygon is set to shift its strategy, concentrating on the PoS and AggLayer under the guidance of CEO Sandeep Nailwal. The value of POL has been declining as Ethereum layer-2 solutions such as Base and Arbitrum see a rise in TVL.

Ethereum’s intrinsic scalability limitations prevent the operation of a Facebook-like dApp without users paying exorbitant fees and straining the protocol.

Polygon, serving as a sidechain to Ethereum, recognized this challenge early on and developed a scaling solution for users and creators desiring low fees and robust scalability while leveraging Ethereum’s advantages.

As a sidechain, it offers scalability, compatibility with ETH, and protection through its own network node operations.

Throughout the years, the sidechain has drawn in billion-dollar dApps across Decentralized finance, NFTs, meme coins, and beyond. Major DeFi projects like Uniswap operate on this network.

Furthermore, Polymarket, a well-known prediction trading market platform, is based on Polygon and may witness further expansion after its recent partnership with X, establishing it as the official prediction crypto market for the social media protocol.

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Is POL Declining as Polygon Loses Momentum?

Despite Polygon’s ambitious plans and ongoing development endeavors, POL has faced difficulties, popular downward in the past months.

Following its rebranding from MATIC to POL in early September, which included additional utility features, the token has not been able to reach its previous all-time highs and mostly resides in negative territory.

Binance data indicates that POL is presently valued at $0.19, reflecting a nearly 50% decrease from its rebranding listing price of $0.38.

After reaching a peak of $0.75 in late 2024, POL dropped to $0.15 by April 2025, representing an 80% decrease from its Q4 2024 peak.

(POLUSDT)

Falling prices of BTC, ETH, and Solana may have pulled down the broader cryptocurrency crypto market, affecting POL.

Nonetheless, despite their aspirations and vigorous development, POL seems less appealing to investors and traders at this juncture.

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Sandeep Nailwal Assumes Leadership as CEO of the Polygon Foundation

On June 11, 2025, the sidechain implemented changes to break free from stagnation and redirect its focus. Sandeep Nailwal, co-founder of Polygon, was appointed as CEO of the Polygon Foundation, indicating a shift toward improved speed and focus.

In a post on X, Nailwal expressed that the platform requires a “clear direction,” necessitating “stepping up.”

BIG announcement – As the largest holder of POL and someone who dedicated his life to the development and success of @0xPolygon from the very beginning, I have decided to take full control of Polygon Foundation and will be its CEO going forward. Polygon Foundation owns and oversees…

— Sandeep | CEO, Polygon Foundation (※,※) (@sandeepnailwal) June 11, 2025

With Nailwal in charge, the aim is to implement a streamlined roadmap.

To expedite progress, the Polygon Foundation will concentrate on key initiatives: Polygon PoS and AggLayer.

Other initiatives, including Polygon zkEVM, will be phased out.

According to the Polygon 2.0 roadmap, the AggLayer enables trustless, cross-chain communications among protocols. Polygon plans to launch AggLayer v3.0 by the conclusion of June 2025, introducing additional interoperability features in Q3 2025.

Simultaneously, Polygon PoS will undergo upgrades under the Gigagas roadmap, aiming for over 1,000 TPS with sub-second finality, with testnet outcomes already showing promise. The long-term objective is to reach over 5,000 TPS.

Can The Sidechain Recover, or Is It Too Late for POL?

While Polygon’s approach is audacious, precisely clarifying its value proposition, the lingering question is: Are these modifications occurring too late?

Polygon used to be the go-to scaling solution for ETH, but it has since lost traction.

In the ongoing layer-2 competition, Base and Arbitrum have emerged victorious. Their design, which directs transactions off-chain, is more in line with ETH 2.0’s vision.

With Vitalik Buterin stressing the significance of layer-2 solutions for Ethereum’s scalability, these platforms are drawing more market fluidity and developers, particularly post the Dencun upgrade aimed at enhancing layer-2 functionalities.

Arbitrum alone claims a TVL of $13.8 billion, significantly surpassing Polygon’s $1 billion by over 13 times.

(Source)

To regain its former status, Polygon must implement significant changes and align itself more closely with the continually evolving ETH ecosystem.

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The post Polygon Has a New Plan: Is It Too Late for POL? appeared first on 99Bitcoins.