What is Polygon? A comprehensive overview of Ethereum scaling solutions

For many cryptocurrency users, high transaction fees and slow confirmation speeds have long been pain points of the Ethereum network. The emergence of Polygon is precisely to address these issues.

This project, which began in 2017 and was originally named Matic Network, has now become one of the most important scaling solutions in the Ethereum ecosystem, used by global companies like Starbucks, Reddit, and others to build Web3 experiences.

Project Origin and Core Philosophy

Polygon was born as a direct response to the limitations of the Ethereum network. In 2017, three Indian developers—Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun—co-founded Matic Network. They observed that with the rise of blockchain games like CryptoKitties, the Ethereum network often became congested, leading to skyrocketing transaction fees and extended confirmation times.

Polygon’s core mission is clear and firm: to make Ethereum more efficient and user-friendly without compromising security. Unlike those “Ethereum killers” attempting to replace Ethereum, Polygon has chosen a complementary path. It builds a set of scalable solutions compatible with Ethereum to help process more transactions, reduce user costs, and maintain secure connections to the Ethereum mainnet.

Technical Architecture and Solutions

Polygon’s technological evolution reflects its ongoing exploration of scaling solutions. Initially, the project adopted Plasma technology as a scaling method, which involves creating “child chains” to process transactions and periodically submitting results to the Ethereum mainnet. However, Polygon did not stop there but developed a diversified technical architecture.

Currently, Polygon offers multiple scaling solutions, including sidechains, zkEVM, and Polygon CDK. Its PoS sidechain is an independent blockchain that ensures security by periodically submitting checkpoints to Ethereum. This sidechain uses a proof-of-stake consensus mechanism, where validators stake MATIC/POL tokens to secure the network and earn rewards. Notably, Polygon zkEVM combines zero-knowledge proofs with Ethereum Virtual Machine compatibility. It allows developers to migrate Ethereum applications to Polygon with minimal code changes, enjoying lower fees and faster speeds. Additionally, Polygon CDK is an open-source toolkit enabling developers to easily create their own ZK-driven Layer 2 chains.

Token Evolution and Economic Model

Polygon’s token system has undergone significant evolution. The original project token was MATIC, used for paying transaction fees, staking, and governance. However, with the introduction of Polygon 2.0, the project executed a token upgrade in September 2024, replacing MATIC with POL. POL is designed as the next-generation token driving the entire Polygon ecosystem, unifying gas fee payments, staking, and governance across all Polygon chains.

This transition aims to create a more unified and efficient multi-chain ecosystem.

According to Gate data, the maximum supply of POL tokens is 10 billion, with a circulating supply of approximately 1.89 billion as of January 8, 2026, and a market cap of $16.07 billion.

Ecosystem Development and Adoption

The development of the Polygon ecosystem is remarkable. By 2025, over 3,000 decentralized applications (DApps) are active within the ecosystem, covering DeFi, gaming, NFTs, artificial intelligence, and more. These applications collectively build a diverse and vibrant blockchain ecosystem.

In terms of adoption, Polygon has also performed excellently. Major enterprises and brands are key drivers of Polygon’s ecosystem growth. Starbucks has used Polygon technology to build its NFT loyalty program, Reddit launched collectible avatars on Polygon, and Nike has partnered with Polygon to develop digital collectibles. Furthermore, in 2025, the collaboration between Polygon Labs and Indian telecom giant Jio Platforms is particularly noteworthy, aiming to bring Web3 features to Jio’s 450 million users.

In terms of user data, Polygon’s social media followers have surpassed 5 million. Its PoS network has processed over 4.2 billion transactions, and transactions on Polygon zkEVM have exceeded 96 million.

Market Performance and Data Analysis

Based on the latest market data, the market performance of Polygon Ecosystem Token (POL) more accurately reflects its true state after cycle adjustments. Currently, POL is priced at about $0.1266, with a 24-hour trading volume of approximately $2.04 million, a total market cap of around $1.33 billion, and a market share of about 0.041%. In the short term, POL experienced a slight correction in the past 24 hours (around -1.23% to -1.75%), but over a longer period, its 7-day increase reached +27.93%, indicating signs of phased capital inflow; over the past 30 days, it increased by +3.01%, while over the past year, it still declined by -72.96%, showing that the asset is still in a long-term recovery phase. Compared to MATIC’s all-time high during the last bull run, POL’s current valuation has significantly converged, reflecting the market’s re-pricing of its ecosystem transformation and long-term value.

From a medium- to long-term perspective, the market has gradually formed a consensus on POL’s price trajectory. Data shows that the average price expectation for POL in 2026 is about $0.1266, with a volatility range roughly between $0.10 and $0.1785; if ecosystem expansion and Layer 2 narratives continue to advance, the price could reach approximately $0.3641 by 2031, representing a potential return of about +112% compared to current levels.

From a technical analysis perspective, the $0.10–$0.12 range is seen as a key medium-term support zone, determining whether the price can sustain a structural rebound; above that, attention should be focused on resistance levels around $0.15 and $0.18. Momentum indicators (such as RSI and MACD) show that although POL is still in a recovery phase after a long decline, short-term selling pressure is weakening, and the price structure is transitioning from oversold rebounds to oscillating bottoms, providing a technical window for future movements.

Future Outlook and Roadmap

Looking ahead, Polygon’s development roadmap focuses on several key directions. The realization of Polygon 2.0 will be central to the ecosystem, aiming to transform Polygon into a highly interconnected Layer 2 chain network through zero-knowledge proof technology. Upgrades such as the continuous optimization of zkEVM and the widespread adoption of Polygon CDK will be priorities.

As more projects use Polygon CDK to create application-specific chains, the interoperability and scalability of the entire ecosystem will be further enhanced. On the ecosystem development front, enterprise adoption and mainstream integrations are expected to continue driving Polygon’s growth. With more companies like Revolut integrating Polygon technology, the network’s utility as a payment and financial infrastructure will be improved.

In the market, Polygon faces both opportunities and challenges. On one hand, the ongoing growth in Ethereum scaling demand provides a broad market space; on the other hand, competition from scaling solutions like Arbitrum and Optimism is intensifying. Polygon needs to continue innovating technologically and building its ecosystem to maintain its market position.

The Polygon network’s daily active users have exceeded 50,000, accounting for over 30% of Layer 2 transactions on Ethereum. Its technical roadmap is steadily progressing—from sidechains to zkEVM, and towards the ambitious vision of Polygon 2.0. As more developers join this ecosystem, over 3,000 DApps are building the future on Polygon.