Polygon is adjusting its strategy to emphasize the Proof of Stake (PoS) mechanism and AggLayer, led by new CEO Sandeep Nailwal. With growing competition from Ethereum layer-2 solutions such as Base and Arbitrum affecting POL’s performance, this shift aims to reinvigorate interest and activity around the token.
Background
Ethereum has faced scalability issues, making it challenging to support large-scale applications without incurring high fees, thus prompting Polygon’s development of a sidechain to offer a more efficient solution.
Over the years, Polygon has successfully hosted several billion-dollar decentralized applications (dApps) across DeFi, NFTs, and meme coins. However, despite innovations, POL has struggled to maintain its price, currently trading around $0.19, nearly 50% lower than its initial listing after its rebranding from MATIC.
Future Actions
Nailwal expressed that the Polygon Foundation must adopt a straightforward direction, focusing on accelerating deployments within its core channels. Upcoming goals will revolve around enhancing the PoS system and AggLayer’s interoperability features, while other projects may see reduced emphasis.
This transition comes amid a market where competitors like Arbitrum hold significantly higher total value locked (TVL), emphasizing the urgency for Polygon to amend its strategies.
