Evaluating Polygon's Strategic Shift: Is the Spin-off of ZisK a Smart Move for Long-Term Value?

Polygon's strategic realignment in 2025 has sparked significant debate among investors and blockchain analysts. At the heart of this shift lies the spin-off of ZisK, a standalone venture led by co-founder Jordi Baylina, which has transferred the Polygon zkEVM team and its intellectual property to a Swiss entity according to The Block. This move, coupled with a refocusing of resources toward Polygon PoS and the AggLayer, reflects a calculated effort to streamline operations and prioritize scalable, high-impact initiatives. But does this strategic pivot truly position Polygon for long-term value creation, or does it risk fragmenting a once-cohesive ecosystem?

Strategic Rationale: Resource Reallocation and Technical Constraints

Polygon's decision to spin off ZisK and phase out the zkEVM chain by 2026 stems from a pragmatic assessment of resource allocation. According to a report by , the zkEVM chain had been underutilized and incurred annual losses exceeding $1 million. By redirecting capital and engineering talent to Polygon PoS and AggLayer, the foundation aims to capitalize on higher-utility use cases, such as cross-chain interoperability and scalable transaction processing.

Sandeep Nailwal, who assumed leadership of the Polygon Foundation in June 2025, has emphasized this realignment. As stated by CoinDesk, Nailwal's strategy prioritizes "sunset[ing] underused chains" while accelerating development of AggLayer, a protocol designed to enable secure, zero-knowledge (ZK)-secured cross-chain communication. This shift aligns with broader industry trends, where projects increasingly favor modular architectures over monolithic layer-2 solutions.

Financial and Operational Impact: Q3 2025 Metrics

The early financial and operational outcomes of this reallocation are promising. indicates that Polygon's Q3 2025 upgrades-namely the Bhilai hard fork and Heimdall v2-enabled the network to achieve 1,000 transactions per second (TPS) with near-zero gas fees, while reducing block finality to five seconds. These improvements translated into tangible user growth: daily active addresses on Polygon PoS rose 10% quarter-over-quarter to 600,000, and daily transactions increased by 12% to 3.8 million.

DeFi activity also rebounded, with total value locked (TVL) rising 10% to $1.18 billion and stablecoin supply growing 23.3% to $2.98 billion. Meanwhile, the migration from MATIC to POL is nearly complete at 99%, and POL's market capitalization surged 54% quarter-over-quarter to $2.45 billion. These metrics suggest that Polygon's refocused strategy is resonating with users and investors alike.

Investor Returns: Balancing Short-Term Gains and Long-Term Risks

From an investor perspective, the spin-off of ZisK and the AggLayer's expansion present a dual-edged sword. On one hand, the AggLayer's multistack support-allowing both EVM and non-EVM chains to integrate-has attracted projects like Katana Network and OKX's USDT0, signaling growing liquidity and network effects. On the other hand, the ZisK spin-off raises questions about potential fragmentation. By operating independently, ZisK may dilute Polygon's brand cohesion, particularly if its zkVM technology fails to gain traction outside the existing ecosystem.

However, critics argue that the spin-off was inevitable. As noted by Unchained Crypto, the zkEVM's technical limitations and low adoption made its continued operation a financial drag. By offloading this underperforming asset, Polygon can now concentrate on high-potential initiatives, such as AggLayer's custom ZK-powered chains, which are already attracting enterprise-grade partners.

Long-Term Value Implications: The AggLayer's Role in Scalability

Polygon's long-term value proposition hinges on its vision of an "internet of value"- a horizontally scalable, ZK-secured network of interoperable blockchains. The AggLayer's role in this vision is critical. By enabling secure cross-chain communication, it addresses a key pain point in blockchain adoption: siloed liquidity and user activity. For instance, the AggLayer CDK has already facilitated the launch of chains like Katana Network, demonstrating its adaptability.

Moreover, as more chains adopt the AggLayer, Polygon stands to benefit from network effects. Each new integration increases the protocol's utility, potentially driving further user and developer adoption. This flywheel effect could reinforce Polygon's position as a leading Ethereum scaling solution, even as competition intensifies from projects like Arbitrum and Optimism.

Conclusion: A Calculated Bet on Scalability

Polygon's spin-off of ZisK and its refocusing on PoS and AggLayer represent a calculated bet on scalability and interoperability. While the short-term financial metrics are encouraging-POL's market cap growth and rising TVL are clear indicators-investors must weigh these gains against the long-term risks of fragmentation and execution uncertainty.

For now, the data suggests that Polygon's strategic shift is paying off. The AggLayer's rapid adoption and the network's technical upgrades have positioned it to capitalize on the next phase of blockchain growth. However, the true test of this strategy will lie in ZisK's ability to innovate independently and in Polygon's capacity to maintain its leadership in a rapidly evolving market.