In a bold move aimed at rejuvenating its standing in the cryptocurrency ecosystem, Polygon has announced that co-founder Sandeep Nailwal has taken the helm as the CEO of the Polygon Foundation. This leadership transition, effective immediately, marks a significant pivot in the foundation’s strategic direction, placing a renewed emphasis on a cross-chain liquidity protocol called AggLayer.
A New Chapter for Polygon
Nailwal, who has been a pivotal figure since Polygon’s inception in 2017 under its original name, Matic Network, will now spearhead the foundation’s long-term strategic initiatives. In a statement released to CoinDesk, the team expressed that this consolidation of leadership is designed to ensure Polygon’s continued relevance in the rapidly evolving Web3 landscape. “This renewed control marks the beginning of a strategic push for Polygon to reclaim its position at the forefront of Web3,” the statement read.
Under Nailwal’s guidance, the foundation will focus on driving exponential growth and delivering increased value to POL stakers, according to sources within the organization. POL, formerly known as MATIC, serves as the native token of the Polygon ecosystem, with its holders playing a crucial role in network security through staking.
Challenges and Opportunities
Polygon’s sidechain, once a popular alternative for Ethereum scalability due to its low-cost and fast transaction capabilities, has seen a decline in activity. Data from DefiLlama shows a dramatic drop in total value locked (TVL) across Polygon networks—from a peak of $9.79 billion in June 2021 to approximately $1 billion today.
The rise of new Ethereum scaling solutions such as Optimism and Arbitrum, with their layer-2 rollups offering enhanced Ethereum compatibility and security, has presented significant competition. Notably, Polygon’s own rollup solution, zkEVM, ranks only 27th among layer-2s in terms of TVL, according to L2Beat. Consequently, the foundation has decided to phase out its zkEVM Mainnet Beta by 2026, citing developer challenges and limited adoption.
However, Polygon is not standing still. With its strategic reset, the foundation is doubling down on its proof-of-stake sidechain, shifting focus towards real-world financial assets. The ambitious roadmap includes plans to transform the chain into a “gigagas” network, capable of processing up to 100,000 transactions per second. This strategic focus aligns with broader industry trends, such as MEXC’s recent launch of a $300M Web3 fund, which underscores the growing investment in Web3 infrastructure.
Strategic Realignment and Market Implications
In a move reminiscent of recent changes within the Ethereum Foundation, Polygon is undergoing a comprehensive reorganization. This includes the departure of Jordi Baylina, the lead researcher for zero-knowledge proofs, who is set to launch his own project, ZisK. The strategic realignment aims to address what Nailwal describes as an “existential crisis” for Ethereum, prompting Polygon to revisit its core identity and adopt a more agile and innovative approach.
Nailwal’s vision for Polygon is clear: to enhance the value proposition for POL stakers and clarify the broader market direction. The timing of these changes appears fortuitous, given the recent cessation of SEC investigations into MATIC as a security. In a social media post, Nailwal expressed optimism about the renewed interest from major market makers, enhancing liquidity for POL across global exchanges. This focus on security and liquidity echoes the potential of restaking to enhance DeFi security for institutional traders, a trend gaining traction in the market.
Looking Ahead
As Polygon charts its course forward, several questions remain about the network’s ability to reclaim its place as a leader in Ethereum scaling solutions. The planned enhancements and strategic focus on real-world financial assets could position Polygon favorably in the evolving DeFi landscape. However, the competitive pressure from other scaling technologies and the need to execute on its ambitious roadmap will undoubtedly test the network’s resilience.
For now, all eyes are on Nailwal and his team as they navigate these transformative times. As the cryptocurrency market continues to evolve at a dizzying pace, Polygon’s success will depend on its ability to adapt and innovate—hallmarks of a thriving Web3 ecosystem.
Source
This article is based on: Polygon’s Sandeep Nailwal Takes Over as Foundation CEO Amid Strategic Shakeup
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
