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You are here: Home / News / Altcoin News / Polygon Q1 2025 Update: Agglayer Powers Cross-Chain Growth
Polygon

Polygon Q1 2025 Update: Agglayer Powers Cross-Chain Growth

May 7, 2025 by Tina Fatima

Key Takeaways

  • Pessimistic proofs launched on Agglayer, enabling secure cross-chain interoperability.
  • NFT trading volume on Polygon surged 68.2% QoQ, driven by Courtyard’s Pokémon sales.
  • Stablecoins emerged as the dominant use case on Polygon PoS, with $2B in supply.

The highlight of Q1 2025 for Polygon was the release of pessimistic proofs to its mainnet in Agglayer, a critical milestone in blockchain interoperability. In existence since February 3, the mechanism confirms all the linked blocks update correctly, accounts for assets correctly, and blocks unauthorized withdrawals.

In contrast to zero-knowledge proofs premised on trust about cryptographic outputs, pessimistic proofs take the approach of trusting each chain only to the extent necessary, with each chain initially treated under pessimistic assumptions.

This methodology isolates any misbehaving chain, maintaining the security of the network. The technology underpins Agglayer’s cross-chain bridge to create doors for secure communication among chains with various architectures.

Messari Analyst Christine Kim underlined how pessimistic proofs play a key role in permitting scalability without compromising security. According to her, as we usher in the multi-chain reality, solutions such as Agglayer play a principal role in maintaining composability and trust in the splintering ecosystems.

State of @0xPolygon Q1

Key Update: Polygon Agglayer launches pessimistic proofs, enabling secure cross-chain interoperability and sparking integrations across multiple protocols.

QoQ Metrics 📊
• Daily active addresses ⬆️ 4.4%
• Daily NFT trading volume ⬆️ 68.2%
• Stablecoin… https://t.co/LOVKhsL87K

— Messari (@MessariCrypto) May 6, 2025

Integrations were rapid and significant. Tria incorporated chain abstraction over EVM, Solana VM, and MoveVM. SOCKET Protocol integrated with a gateway model, removing the necessity for conventional bridges.

Karate Combat expanded its token economy through Agglayer to Hedera, and Rome Protocol made Agglayer its reference bridge to Ethereum and Solana. All of the above developments validated the rise of Agglayer as a fundamental infrastructure piece for Web3 creators.

Polygon, Stablecoins and DeFi Fuel Engagement

Polygon PoS recorded moderate growth in user base during Q1. Daily active addresses went up by 4.4% to 546,000, and average daily transactions went up by 8% to 3.4 million.

Nevertheless, user growth slowed with a 16.2% decrease in the daily new addresses to 88,700. Yet, growing activity in stablecoins, DeFi, and NFTs kept engagement going.

The DeFi market stood firm at a total value locked (TVL) of $744.8 million. At the forefront were QuickSwap and Spiko, which increased 72.5% and 28.9% quarter-on-quarter, respectively. In the meantime, stablecoin supply grew to $2 billion, +23.3%, making it the most active category by addresses.

Polygon NFTs logged a sharp revival. Volumes rose by 68.2% to $1.4 million per day, fueled by Courtyard’s tokenized Pokémon cards’ runaway growth. Courtyard had March sales of $56.5 million, an increase of more than 439% in one quarter.

CDK Momentum and POL Token Transition

Polygon’s Chain Development Kit (CDK) kept picking up traction. Chains such as Ember, Lumia, and Moonveil launched or upgraded through CDK, sometimes with a view to later Agglayer connectivity. Stack advances, such as the addition of support for Erigon and RPC improvements, set the stage for increased scalability.

The base POL token, nonetheless, encountered market challenges. Having reached its peak at $12.9 billion in early 2024, its market cap fell to $1.7 billion during Q1 2025, a decrease of 54% quarterly. Despite this, 92.7% of supply has been shifted from MATIC to POL, indicating increased support around the new asset.

Related Reading | New Launchpads Challenge Pump.fun With Innovative Token Mechanics

Filed Under: Altcoin News Tagged With: Cross-Chain Blockchain Security, POL Token & CDK Adoption, Polygon Agglayer Proofs, Polygon DeFi & NFT Growth

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