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Polygon’s zkEVM Never Adopted Blobs, Now Running at a $1M+ Annual Loss: Researcher Claims
According to recent reports, Polygon’s zero-knowledge chain, zkEVM, has failed to make any substantial progress since its rebranding. As a result, the project is now reportedly operating at an annual loss of over $1 million.
The findings come from GrowThePie’s research lead, Lorenz Lehmann, who claims that development on the chain has been “quietly discontinued.” It appears that zkEVM was never upgraded to incorporate Ethereum’s Blob data structure, which could have significantly reduced data availability costs for rollups.
This revelation arrives at a time when the Polygon Foundation is undergoing significant changes. Co-founder Sandeep Nailwal has recently taken on the role of CEO after the quiet exit of co-founder Mihailo Bjelic. This shift follows the departure of two other founding members, Jaynti Kanani and Anurag Arjun, from operational roles in 2022.
The decision to discontinue zkEVM’s development appears to have been made prior to any official announcement, suggesting that the narrative surrounding the project may be understating the extent to which it has been deprioritized. The fact that Polygon is shifting its focus toward its proof-of-stake chain and new initiatives like AggLayer further underscores the marginalization of zkEVM.
It’s worth noting that the total value locked (TVL) in Polygon zkEVM has seen a significant decline, falling by an astonishing 80% since reaching an all-time high of $187 million in March 2024. In the following year, there was a brief resurgence to $111 million before returning to its downward trend.
Source: cryptopotato.com
