Polygon Network Sees Spike in Payment System as Sandeep Criticizes Ethereum Foundation

Polygon, a prominent layer-2 scaling solution on Ethereum, has witnessed significant growth and adoption, particularly in the sphere of payment systems.

Sandeep Nailwal, CEO of Polygon Network, recently highlighted the network’s advancements, emphasizing its edge in payment processing due to consistent pricing and decreasing fees. This has led to increased desirability and broader usage, reflected in the network’s impressive metrics.

According to the interview, Nailwal pointed to the network’s key performance indicators, noting an average of 7.3 million active monthly addresses, indicative of a substantial user base. The daily active addresses, averaging 590,000, further demonstrate the robust activity occurring on the L2 chain.

Moreover, the decentralized finance (DeFi) Total Value Locked (TVL) stands at $1.15 billion, predominantly in stablecoins. This aligns with Polygon’s strategic focus on payments. Additionally, the growth in payment provider volume on Polygon is particularly noteworthy, showing a substantial 49% quarter-over-quarter increase and reaching an all-time high of $693 million in September.

This surge is attributed to the increasing adoption of Polygon by various fintech companies, neo-banks, and payment service providers, who are opting for Polygon as the default chain for their users.

Polygon CEO Raises Discontent Towards Ethereum Foundation

Despite these achievements, Nailwal and Andre Cronje, co-founder of Sonic Labs, have publicly expressed their discontent with the Ethereum Foundation’s role in supporting Layer-2 builders.

According to an X post, Nailwal questioned his loyalty towards Ethereum, stating that “Polygon has received no direct support from the EF” despite contributing to Ethereum’s adoption and scalability. Cronje echoed these sentiments, noting the considerable resources he has spent building on Ethereum without receiving any outreach, grants, or support from the foundation.

Nailwal further suggested that Polygon may have potentially lost billions in market value by remaining within the Ethereum ecosystem, rather than rebranding as a standalone Layer-1. Cronje’s criticism focused on the perceived lack of funding and business development assistance from the EF, contrasting his experience with the support provided within the Sonic environment.

These criticisms raise fundamental questions about how the Ethereum ecosystem allocates resources, grants recognition, and offers support. Nailwal and Cronje fundamentally argue that Layer-2 solutions, such as Polygon, have played a crucial role in scaling Ethereum, yet the foundation has not adequately acknowledged or supported this contribution.

In response, Vitalik Buterin, co-founder of Ethereum, acknowledged and thanked Polygon and Nailwal for their contributions, specifically highlighting their work on zero-knowledge (ZK) proof technology and hosting the Polymarket platform.

However, Buterin also pointed out that Polygon does not currently meet the strict definition of an Ethereum Layer-2 due to the absence of a comprehensive proof system that guarantees the same level of security as Ethereum’s base layer. He suggested that available ZK-tech stacks could address this.

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