Polygon Labs developers are planning a network upgrade to increase its blockchain’s transaction capacity by 33%, scheduled for early in the fourth quarter of 2025. The move is meant to better handle the growing demand for stablecoin payments and deals involving real-world assets. The goal is to stop network congestion from happening in the first place.
The core of the upgrade involves raising the block gas limit from 45 million to 60 million, a technical change outlined in a Polygon Improvement Proposal. This adjustment will theoretically boost the number of transactions per block from 1,071 to 1,428.
Adam Dossa, senior vice president of engineering at Polygon Labs, stated that the team is keen not to “lag the market, to wait until the blockchain is horribly congested,” according to a report. To manage potential tradeoffs from this increase, such as state growth, the team is also testing parallel upgrades like “statements verification” on its Amoy testnet.
Positioning for Stablecoin Growth
On-chain data shows that stablecoin action on the network has grown a lot, which is why this proactive move was made. Since the beginning of 2025, the number of peer-to-peer stablecoin transactions on Polygon has grown by almost 40% each month. Dossa noted that “fast finality, and also stronger guarantees or expectations around block inclusion” are key requirements for a payments-focused blockchain.
Despite this growth, Polygon’s stablecoin market remains smaller than that of competitors like Ethereum and Tron, which hold approximately $156 billion and $79 billion, respectively, per data from DefiLlama.
The upgrade is part of a broader strategy to close this gap and capture a larger share of the stablecoin market, which has already grown to $300 billion, while according to the Treasury Secretary Scott Bessent it could grow to $2 trillion. “Ultimately, we want to get up to 5,000, 10,000 transactions per second,” Dossa added. “This is one step along that journey.”
Polygon is planning to boost its capacity as a smart move to strengthen its place as a key infrastructure for payments and tokenized assets. By increasing its throughput before demand causes it to become crowded, Polygon hopes to make a more reliable and effective setting for heavy apps. This gives the network a better chance to participate in the stablecoin market, which is growing quickly, and it shows a long-term commitment to expanding its features for future financial systems.
Also read: Polygon Blockchain Faces Temporary Delay in Block Finality
