Bitcoin Surge, GME Frenzy & Tether Debate Dominate Crypto Week

Bitcoin’s brief surge past $113,000, renewed GameStop trading frenzy, and ongoing Tether transparency debates are defining this week’s crypto narrative. Market intelligence from Santiment reveals these three topics dominating social discussions, highlighting a market where emotion and fundamentals collide. The Federal Reserve’s crypto-friendly remarks sparked capital rotation from gold to Bitcoin, while cross-market sentiment links meme stocks with speculative crypto assets amid ongoing governance debates and market collapses.

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Ethereum Tensions: Buterin Praises Polygon Amid Community Criticism

The Ethereum ecosystem is confronting significant internal turmoil as Polygon co-founder Sandeep Nailwal’s public frustrations and a core developer’s private revelations expose deep-seated governance issues. Ethereum co-founder Vitalik Buterin’s unexpected intervention praising Polygon’s Layer 2 contributions comes amid revelations of compensation disparities, leadership concerns, and what one developer describes as an irreversible ‘ruling elite’ structure. These developments highlight fundamental challenges facing the world’s second-largest blockchain protocol as it navigates competing visions and power dynamics.

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Polygon Founder Questions Loyalty to Ethereum Ecosystem

Polygon co-founder Sandeep Nailwal has publicly criticized the Ethereum community for failing to recognize Polygon’s contributions to the ecosystem, revealing he’s questioning his allegiance to Ethereum. The comments prompted a response from Ethereum creator Vitalik Buterin, highlighting growing tensions between the two blockchain projects as Nailwal suggested his loyalty may have cost Polygon billions in valuation.

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Polygon Labs & Cypher Capital Boost Institutional POL Access in Middle East

Polygon Labs announced a strategic partnership with Cypher Capital to enhance institutional access to POL, the native asset of the Polygon blockchain, in the Middle East. The program will focus on providing real yield opportunities through roundtables, liquidity improvements, and structured offerings tailored for funds, corporates, and large allocators. Cypher Capital will assist Polygon in navigating regional regulatory and capital market landscapes. This move aligns with Polygon’s ‘GigaGas’ roadmap, which has already achieved sub-five-second finality and throughput of up to 1,000 transactions per second. The initiative reflects a growing trend among blockchain projects to build institutional pipelines in emerging markets where digital asset interest is rising.

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Polygon Network Faces Hour-Long Outage Due to Heimdall Hotfix

Polygon’s PoS network suffered a one-hour outage on July 30, causing disruptions for apps and users. While Polygon CEO Sandeep Nailwal stated block production continued, QuickNode and users reported a halt at block height 74,592,238. The issue stemmed from a hotfix on the Heimdall consensus layer, causing some RPC nodes to fall out of sync. Despite the disruption, the Bor execution layer remained operational. Polygon resolved the incident within hours, attributing it to a coordination gap rather than a protocol failure. QuickNode paused upgrades and worked to restore services, while Nailwal assured no further issues were expected.

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POL Holds Key Support; Breakout Could Trigger 270% Surge

Polygon’s POL token is consolidating above a key support range of $0.19-$0.21, with analysts like Crypto Patel suggesting a breakout above $0.28 could trigger a 270% price surge to $0.70 or higher. The token’s structure remains valid as long as it stays above $0.15 on higher timeframes. However, Polygon’s zkEVM chain has seen a significant drop in Total Value Locked (TVL) below $20M, with development stalled and leadership changes adding to uncertainty. Market sentiment is mixed, with bullish crowd sentiment contrasting bearish internal models. Traders are closely monitoring the $0.28 level for a potential trend shift.

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Polygon Dominates Micropayments with 67% Growth in 2025

Polygon has emerged as a dominant force in crypto micropayments, with transaction volume soaring 67% to $110 million between February and June 2025. The network leads in peer-to-peer USDC transfers, processing 3.4 million transactions—an 82% annual increase. CEO Sandeep Nailwal emphasized Polygon’s focus on solving key industry challenges: speed and fees. The blockchain also outperformed rivals like Solana and Ethereum in small ($100–$1,000) and mid-sized ($1,000–$10,000) payments, with 190% and 137% growth, respectively. Polygon now holds over 50% of the micropayments market share, while its POL token rose 37% monthly amid network upgrades.

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Polygon’s Heimdall v2 Boosts Speed to 5-Second Finality

Polygon’s Proof-of-Stake mainnet has successfully rolled out Heimdall v2, implementing proposals PIP-43, PIP-44, and PIP-62 to reduce block finality from one minute to five seconds. The upgrade replaces Tendermint with CometBFT, streamlines the consensus layer, and clears technical debt, enabling faster, more secure transactions for users and developers. CEO Sandeep Nailwal hailed it as one of crypto’s most complex upgrades, rivaled only by Ethereum’s Merge. The changes enhance Polygon’s appeal for tokenized assets (e.g., T-bills, real estate) and pave the way for 5000+ TPS and Agglayer integration by year-end, targeting enterprise-grade scalability and cross-chain liquidity.

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Polygon Heimdall v2 Upgrade Boosts POL Price by 10%

The Polygon Foundation has successfully deployed the Heimdall v2 upgrade on its Proof-of-Stake (PoS) mainnet, marking a significant milestone for the network. The upgrade, which reduces finality from 90 seconds to just 5 seconds and block times to approximately 2 seconds, aims to improve throughput and user experience. Following the announcement, Polygon’s native token, POL, surged by 10%, with trading volume jumping over 50% to $221 million. The upgrade also supports Polygon’s goal of scaling to 1,000 transactions per second (TPS). Validators were required to transition to a new keyring system for compatibility, while dApps were advised to adjust confirmation thresholds during migration. This development follows other recent Polygon ecosystem advancements, including partnerships with Agora and AUSD stablecoin, as well as surpassing $100 billion in all-time volume on Uniswap.

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Polygon’s Heimdall 2.0: Most Complex Hard Fork Since 2020

Polygon is set to roll out its most technically challenging hard fork to date with the Heimdall 2.0 upgrade on Thursday. This major update to its proof-of-stake (PoS) blockchain will replace legacy components from 2018 and 2019 with modern infrastructure, improving finality, user experience, and network upgradeability. Polygon Foundation CEO Sandeep Nailwal emphasized the complexity of this upgrade, calling it the most significant since the network’s launch in 2020. The move underscores Polygon’s commitment to scalability and efficiency in the blockchain space.

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