Polymarket's Strategic Shift: Building Its Own Polygon-Like L2 to Escape Infrastructure Dependency

Following a network outage on Polygon in mid-December, Polymarket has made a decisive move: it’s developing its own Ethereum Layer 2 solution branded POLY and transitioning away from relying on external infrastructure. The disruption that occurred on December 18 exposed the risks of depending on a single chain, pushing the prediction market platform to prioritize this infrastructure independence as a critical initiative.

Why the Independence Push?

The December incident wasn’t just about downtime—it revealed a deeper issue. Polymarket’s current architecture sits on Polygon, but the platform is also looking to reduce reliance on third-party data and infrastructure providers. The team has expressed frustration with services like GoldSky and Alchemy, deciding to build more control over their operational layers rather than outsourcing key functions.

By launching a kind of Polygon alternative (its own L2), Polymarket aims to achieve faster settlement times, lower costs, and most importantly, direct control over system stability. This is a trend we’re seeing across DeFi—major applications moving toward owning their infrastructure rather than renting it.

What’s Next: Ultra-Fast Markets

While the L2 migration represents the long-term vision, Polymarket is moving quickly on near-term features. The platform is rolling out 5-minute markets this week, catering to traders who want rapid-fire prediction opportunities. This expansion signals confidence in the platform’s growth trajectory and its ability to innovate beyond infrastructure concerns.

The combination of these moves—spinning up proprietary infrastructure and expanding market offerings—positions Polymarket as a platform taking control of its own destiny rather than remaining vulnerable to external dependencies.