Quick Takeaways
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Declining Progress: Polygon’s zkEVM, acquired for $250 million, is reportedly facing stagnation and operating at a loss exceeding $1 million annually, with development allegedly discontinued.
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Leadership Changes: Following co-founder Mihailo Bjelic’s exit, Sandeep Nailwal is now the sole active founding member, leading a shift in focus towards consolidating Polygon’s strategy amidst structural changes.
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Marginalized Role: Initially a key project for zero-knowledge scaling, zkEVM has now shifted to a secondary priority as Polygon emphasizes its proof-of-stake chain and new initiatives like AggLayer.
- Drastic TVL Decline: The total value locked in zkEVM has plummeted nearly 80% in 2025, from $80.2 million to just $16.25 million, reflecting its diminished relevance and stakeholder interest.
Polygon’s zkEVM Faces Challenges Amid Leadership Changes
Polygon’s zkEVM, developed after acquiring Hermez for $250 million in 2021, struggles to find its footing. Research led by Lorenz Lehmann from GrowThePie indicates that the project now incurs an annual loss exceeding $1 million.
Lehmann asserts that development on zkEVM has been “quietly discontinued.” Notably, it never adopted Ethereum’s Blob data structure, vital for cutting data availability costs. This stagnation raises questions about zkEVM’s viability in the competitive landscape of blockchain technology.
Recent changes at the Polygon Foundation add complexity to the situation. Co-founder Sandeep Nailwal has stepped into the CEO role after Mihailo Bjelic’s departure. This shift leaves Nailwal as the only founding member in active leadership. In 2022, other co-founders also exited operational roles, prompting Nailwal to direct renewed focus on Polygon’s proof-of-stake chain and new projects like AggLayer.
While Polygon’s official timeline suggests zkEVM will remain until 2026, Lehmann’s insights imply an earlier shutdown could be on the horizon. This retrospective scrutiny hints that zkEVM has already been deprioritized despite ongoing public assurances.
At its peak in March 2024, zkEVM’s total value locked (TVL) reached $187 million. However, by 2025, it suffered a sharp decline of around 80%, dropping from $80.2 million to just $16.25 million currently. This trend signifies a troubling shift for what was once viewed as a significant leap in zero-knowledge scaling technology.
As Polygon navigates these challenges, the broader implications for technology development become clearer. The situation highlights the importance of adaptability and innovation in a rapidly evolving blockchain landscape. Polygon’s leadership transition may offer new opportunities, but the path forward remains uncertain.
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