Polygon has announced the shutdown of its zkEVM Layer 2 chain after incurring over $1 million in financial losses. This decision highlights the importance of infrastructure sustainability within the blockchain industry.
Reasons for Shutting Down zkEVM
The closure of zkEVM was driven by its failure to successfully integrate Ethereum’s new protocols, leading to significant operational losses. Polygon's CEO, Marc Boiron, stated: "Shutting down a chain is never an easy decision, and we don’t take it lightly... We’ve always aimed to take risks that push the industry forward, but we know that sometimes things don’t work out as planned."
New Priorities for Polygon
Following the closure of zkEVM, Polygon will shift its focus to developing its new AggLayer infrastructure, which aims to enhance modularity and sustainability for DeFi solutions. This shift aligns with current market trends and may provide a renewed wave of growth for the company.
Impact on the DeFi Sector
The shutdown of zkEVM affects several DeFi projects relying on this technology, yet the Ethereum protocol remains unaffected. While Polygon's governance tokens are experiencing volatility, it is not expected to lead to immediate financial crises for companies within this niche.
By focusing on AggLayer, Polygon aims to boost blockchain efficiency and developer productivity. This strategic pivot reflects broader trends within the crypto industry towards more scalable and integrated solutions.
