Polygon’s zkEVM on the Brink: Can It Survive $1M Annual Bleed?

Polygon''s zero-knowledge EVM solution faces an existential crisis—burning $1M yearly with no end in sight. The bleeding-edge tech might soon bleed out entirely.

When scaling dreams meet financial realities

The zkEVM promised Ethereum-scale throughput at L2 prices. But the math isn''t mathing—$83K monthly losses paint a grim picture for what was supposed to be Polygon''s killer app.

Vitalik''s vision vs. balance sheets

While Ethereum''s co-founder champions zk-tech as the future, Polygon''s accountants see a different story. Turns out ''zero knowledge'' applies perfectly to their path to profitability.

Last gasps before sunset?

Insiders whisper about contingency plans as the project struggles to justify its existence. In crypto, even the most elegant tech dies when the funding dries up—just ask your favorite 2017 ICO.

• Polygon zkEVM, born from the Hermez acquisition, failed to deliver sustained technical upgrades or innovation.
• The chain never adopted blob technology, limiting scalability and modern Ethereum Layer 2 compatibility features.
• Mounting operational losses exceeding $1 million annually have prompted the decision to shut down zkEVM.

Polygon’s $250 million acquisition of Hermez in 2021 launched its grand zkEVM endeavor with the aim of deploying zero-knowledge proofs to scale Ethereum.

But the endeavor was not able to make any tangible progress and was technology-wise dormant, not managing to ever integrate Ethereum’s “Blob” technology.

With operating expenses totaling upwards of $1 million annually and extremely low ecosystem utilization, the closure of the chain has now gone public. The zkEVM will continue to operate until 2026 before its closure.

Soon Polygon zkEVM will shut down. Quick recap:

>Polygon acquired Hermez for $250M in 2021
>Rebranded to Polygon zkEVM
>Development quietly abandoned
>Never upgraded to use Blobs, chain runs at 1M$+ loss/y
>Announce chain will shut down https://t.co/paYx0P06oi pic.twitter.com/0uJAPSvOFX

As zkEVM winds down, Polygon is reallocating its resources toward AggLayer, a framework designed to unify multiple chains through shared liquidity and seamless composability.

Polygon Adopts AggLayer for Ecosystem Scaling

This is a major architectural adjustment to the network, choosing instead a scaling model at an ecosystem level instead of isolated rollups. AggLayer is framed as a developer-focused and modular infrastructure component, likely leading to the next DeFi and institutional real-world asset (RWA) adoption wave.

Despite some technical skepticism in the community, sentiment around AggLayer is broadly optimistic, especially given Polygon’s existing ecosystem depth and partnerships.

The new ZisK subsidiary that was recently established will assume all zero-knowledge research work that was previously involved with zkEVM. While Polygon is backing away from zkEVM per se, it remains invested in ZK innovation.

AggLayer Optimism Boosts Long-Term $MATIC Outlook

The $MATIC token has recorded mixed market signals. Momentum indicators like the MACD reveal short-term bear pressure, and CRSI also suggests additional sideways movement.

However, long-term prospects are buoyed by upbeat sentiments regarding AggLayer, fueled also by growing DeFi activity on the network.

As Polygon realigns its technology vision, this suggests a mature strategy built around network efficiency, liquidity aggregation, and modular scalability.

The shift away from zkEVM may appear abrupt, but it does make sense within a broader trend toward capital-efficient and more interoperable blockchain infrastructure.

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