Exploring the Future of the Polygon Network: A Complete Analysis of 2025 Technology Upgrades and Price Outlook

Currently, the Polygon network is undergoing its most significant strategic transformation since its inception. Co-founder Sandeep Nailwal has assumed the role of CEO of the Polygon Foundation, leading the team to shift focus from the deprecated zkEVM network to the innovative cross-chain liquidity protocol AggLayer.

The recently completed Madhugiri hard fork upgrade has increased on-chain transaction throughput by 40%, reaching 1,400 transactions per second, with an even more ambitious roadmap ahead.

01 Current Network Status and Strategic Transformation

The Polygon network is at a critical turning point. According to the latest strategic adjustments, Polygon co-founder Sandeep Nailwal has officially taken on the role of CEO of the Polygon Foundation, marking leadership consolidation and the launch of a new roadmap.

The core of this adjustment is the deprecation of the zkEVM network and the redirection of all team efforts toward its innovative cross-chain liquidity protocol AggLayer.

This shift is not just a change in technology stack but also a reflection of Polygon’s vision for the future of blockchain interoperability. The AggLayer protocol aims to connect various blockchain networks, enabling seamless cross-chain liquidity transfer.

Meanwhile, the ZK chain based on Polygon CDK will be able to connect to AggLayer, further enhancing the network’s scalability and compatibility.

02 Technological Performance Leap Roadmap

In terms of performance, the Madhugiri hard fork upgrade recently completed by Polygon has achieved remarkable results, increasing on-chain transactions per second by 40% to 1,400 TPS.

But this is just the beginning. According to the technical roadmap disclosed by Sandeep Nailwal, Polygon plans to increase TPS to 5,000 within the next six months, making it one of the highest throughput blockchain networks in the industry.

In the longer term, the goal is to further boost TPS to 100,000 transactions per second within 12-24 months, aiming to become the preferred blockchain platform for global payments. Achieving this performance metric would fundamentally change the position of blockchain in large-scale commercial applications.

In terms of architecture, Ethereum sidechain Polygon PoS plans to propose a technical upgrade to connect to the blockchain aggregation layer AggLayer and migrate from the PoS architecture to the zkEVM validium architecture.

03 Ecosystem Development and Institutional Adoption

The maturity of the Polygon ecosystem is attracting the attention of traditional financial institutions. According to Polygon Labs executive Aishwary Gupta, institutional capital currently accounts for about 95% of total cryptocurrency inflows, while retail investors make up only 5% to 6%.

This institutional shift is a result of infrastructure maturity rather than market sentiment changes.

Leading asset management firms, including BlackRock, Apollo, and Hamilton Lane, are allocating 1% to 2% of their portfolios to digital assets, accelerating their deployment through ETFs and on-chain tokenized products.

Polygon has demonstrated its ability to meet traditional financial compliance and audit requirements through multiple collaborations. For example, JPMorgan’s DeFi trading pilot under Singapore’s financial regulator, Ondo’s tokenized government bond project, and AMINA Bank’s regulated staking services.

Regarding stablecoin migration, Polygon Labs disclosed that the first phase of migrating native USDC on Polygon PoS is underway. Currently, DeFi protocols, bridges, and NFT marketplaces are helping to incentivize users to gradually phase out bridged USDC versions and fully replace them with native versions.

04 Token Performance and Market Outlook

As of December 16, 2025, Polygon (MATIC) is trading at $0.38, currently at a critical technical position. Market analysis indicates that MATIC is expected to recover to the $0.45-$0.52 range within the next 4-6 weeks, provided that key resistance levels are broken and important support zones remain stable.

Technical indicators show that MATIC’s RSI is at 38.00, in a neutral zone but leaning toward oversold conditions, which could present a rebound opportunity. However, the MACD histogram is at -0.0045, confirming that bearish momentum still exists.

Key resistance is at $0.58, a level repeatedly identified in analyst forecasts as a critical point for determining MATIC’s next major move.

Breaking this resistance could trigger a 53% rebound, targeting the $0.72 area. Downside risks are concentrated at the $0.35 support level; if broken, it could trigger a decline toward $0.33.

05 Market Competition and Future Positioning

In the face of increasingly fierce Layer 2 competition, Polygon is reshaping its positioning. The current strategic adjustment aims to regain Polygon’s dominance in the increasingly competitive Web3 infrastructure space.

Market reactions are mixed. On one hand, AggLayer’s grand vision of seamless interoperability is appealing, but phasing out major products like zkEVM could cause short-term ecosystem disruptions.

According to Gupta, institutional participation will not centralize blockchain—in fact, it will enhance its legitimacy. He points out that future financial networks will be integrated systems where DeFi, NFTs, government bonds, ETFs, and other asset classes coexist on a single public chain.

Concerns that institutional dominance might stifle innovation are acknowledged by Gupta, who admits that increased compliance could limit some experimentation. However, in the long run, this will help the industry build more resilient and scalable innovation pathways rather than relying on rapid, rule-breaking trial and error.

Future Outlook

When Polygon PoS finally integrates with AggLayer and migrates from PoS to zkEVM validium architecture, the underlying logic of the entire network will undergo a fundamental change. This transition is not just a technical upgrade but a crucial step in Polygon’s evolution from a simple Ethereum scaling solution to a cross-chain liquidity hub.

From the current $0.38 to the predicted recovery range of $0.45-$0.52, the numbers reflect the market’s cautious assessment of Polygon’s strategic adjustments.

As native USDC gradually replaces bridged versions and transaction capacity aims for 100,000 transactions per second, the Polygon network is weaving a complex web connecting traditional finance with the decentralized future.