Polygon acquired Hermez in 2021 for $250 million.
Development on Polygon zkEVM has been silently discontinued.
The chain runs at an annual loss of over $1 million.
In 2021, Polygon made waves in the blockchain space by acquiring Hermez for a staggering $250 million. The acquisition marked a significant move toward zero-knowledge scaling solutions, with Hermez being rebranded as Polygon zkEVM. The idea was to bring Ethereum compatibility and zk-rollup security together for high-throughput, low-cost transactions.
However, fast forward to 2025, the once-promising project has hit a wall. Development on Polygon zkEVM has reportedly been halted, and the chain remains technologically outdated. It hasn’t been upgraded to support EIP-4844 blobs, a crucial Ethereum improvement that reduces transaction costs and enhances scalability.
Financial Struggles and Strategic Shifts
The most striking issue: Polygon zkEVM is running at a loss of over $1 million per year. Despite the initial investment and ongoing maintenance, user traction and revenue have not kept pace with operational costs. Polygon’s team has now turned its attention toward newer priorities, like the Agglayer and enhancements on the PoS mainnet.
As a result, Polygon zkEVM is expected to be deprecated by 2026. This quiet exit reflects a broader shift in strategy—one that now leans more heavily on cross-chain infrastructure and more efficient scaling solutions. For developers and users who backed zkEVM early on, this shift signals the importance of adaptability in the rapidly evolving crypto landscape.
According to Lorenz, Polygon acquired Hermez for $250 million in 2021 and renamed it Polygon zkEVM. However, the development of Polygon zkEVM has been quietly abandoned and has never been upgraded to use Blobs. The chain is running at a loss of more than $1 million per year.…
— Wu Blockchain (@WuBlockchain) June 17, 2025
The Future Beyond zkEVM
While Polygon zkEVM may fade into the background, Polygon’s broader vision continues. The network is focusing on interoperable solutions and new infrastructure to support the next wave of Web3 adoption. As the ecosystem evolves, the lessons from zkEVM’s journey may help shape smarter, more sustainable blockchain innovation.
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