Polygon Overview: An Ethereum Scaling Solution
Polygon, formerly Matic Network, rebranded in 2021, is a Layer-2 scaling solution designed to address the scalability, low throughput, and high transaction fee issues of the Ethereum network. It functions as an Ethereum-compatible multi-chain blockchain system framework, providing developers with tools to build and connect Ethereum-compatible blockchains, thereby enabling faster transaction speeds and lower costs.
Polygon's technical architecture is based on Ethereum, using it as its base layer. Transactions are first validated within Polygon and then periodically submitted to the Ethereum mainnet via "checkpoints" (Merkle roots) to ensure security. The network employs a Proof-of-Stake (PoS) consensus mechanism, where validators stake MATIC (now POL) tokens to secure the network and process transactions.
Performance and Strategic Transformation
- Performance: The Polygon network claims a theoretical throughput of 65,000 transactions per second (TPS) for a single sidechain, with block confirmation times under two seconds. As of March 2026, through multiple network upgrades, its network capacity has increased to over 2600 TPS.
- Strategic Transformation: From early 2025 to 2026, Polygon underwent a significant strategic transformation, gradually shifting from a general-purpose scaling solution to specialized payment infrastructure, better serving enterprise and institutional-grade applications.
- Recent Upgrades: In August 2026, Polygon implemented the Austin and Kyoto hard forks, fixing several security vulnerabilities in the Bor and Heimdall components. Previously, in April 2026, the Giugliano hard fork was activated, aiming for faster transaction finality.
- Activity: As of March 2026, Polygon is the second most active blockchain for USDC stablecoin addresses and has shown active stablecoin transaction volume recently. Monthly transaction volume grew by 409% in 2025, reaching $1.98 billion by January 2026. In February 2026, monthly transaction volume hit a new all-time high of 204 million.
- Carbon Neutrality: Polygon has achieved carbon neutrality through KlimaDAO's carbon offsetting tools, demonstrating its commitment to sustainability.
Ecosystem and Partnerships
The Polygon ecosystem continues to grow, attracting numerous well-known brands and decentralized applications (DApps). Leading DeFi applications such as Uniswap, Aave, and PoolTogether have been deployed on the Polygon network. Its partners include Nike (Swoosh platform), Starbucks, Reddit, Google Cloud, Mastercard, Adobe, Disney, Meta (USDC creator payments), Adidas, Mercedes, PayPal (PYUSD stablecoin issuance), and Revolut (EURR stablecoin). These collaborations highlight Polygon's advantages in scalability, low transaction costs, interoperability with Ethereum, and smart contract support.
The Role of MATIC Token and the Transition to POL
MATIC was the original native token of the Polygon network, playing a crucial role with primary uses including:
- Paying Network Fees: Users needed to use MATIC to pay for network fees incurred when executing transactions on the Polygon protocol.
- Staking: MATIC holders could stake their tokens into smart contracts deployed on the Ethereum mainnet to participate in the validation process, secure the network, and earn a share of transaction fees.
- Governance: MATIC holders had the right to vote on proposals for changes to the Polygon protocol, participating in the network's decentralized governance.
Migration of MATIC to POL
To support the vision of Polygon 2.0 and a multi-chain ecosystem, Polygon has initiated the migration of the MATIC token to the new POL token. POL is designed to be the token driving the Polygon ecosystem, offering more robust functionalities, including supporting validators for multiple Polygon chains and enabling zero-knowledge proof (ZK-proofs) driven interoperability.
POL replaced the old MATIC token in 2024. According to public information, Polygon completed 99% of the MATIC to POL migration by September 2025. Emissions of old MATIC ended in July 2025, and network validators have also transitioned to the new POL reward program. This means that the utility of the MATIC token has largely migrated to POL.
MATIC Related Data (History and Current Status)
Given that the MATIC token has gradually migrated to POL, its market data may exhibit significant volatility and uncertainty. As of September 1, 2026, public information indicates that MATIC's total supply is approximately 9.97 billion, with a maximum supply typically set at 10 billion. Due to the ongoing token migration, MATIC's circulating supply and market capitalization data vary significantly across different sources, and its primary utility has shifted to POL. Currently, the trading market for this token is almost depleted, lacking effective transactions. Investors are strongly advised to be aware of the risks.
