Polygon makes it to the A-list, but will MATIC alter its bearish course?

• Italy’s central bank announced support for a project involving Polygon. 
• Polygon joined hands with the Government of Mongolia to build a blockchain to deliver government services.

Like other top altcoins, Polygon [MATIC] rode high on the favorable verdict in the Ripple [XRP] vs SEC case this past month. Recall that MATIC was designated as a security in a U.S. Securities and Exchange Commission (SEC) lawsuit.

However, holders of the altcoin hoped that the relief granted to XRP would set a precedent and pave the way for its increased adoption in the long term.

Read Polygon’s [MATIC] Price Prediction 2023-2024

MATIC gained nearly 10% over the past month, according to CoinMarketCap data. However, apart from an improved run at the markets, the Polygon ecosystem was also celebrating the growing application of its blockchain technology.

Polygon’s real-world utility

Italy’s central bank announced support for a project involving Polygon, which aimed at bridging the gap between traditional finance institutions and decentralized finance (DeFi).

The project, which would be led by consultancy firm Cetif Advisory, also includes digital assets infrastructure provider Fireblocks, other Web3 companies, and Italian financial institutions. Titled “Institutional DeFi for Security Token”, the platform would tap into the emerging security token market.

While Europe’s development was promising, things were heating up for Polygon in East Asia as well. Additionally, it announced a collaboration with the Government of Mongolia to build a blockchain to deliver government services to the public.

The project will include services like national IDs, cultural non-fungible tokens (NFTs), and digital embassies.

Real world use case #onPolygon

?The Government of Mongolia has explored the integration of blockchain technology, enabled by Polygon Supernets. This included building a sovereign blockchain to provide government services.

— Polygon (Labs) (@0xPolygonLabs) July 26, 2023

These developments come as Web3 experts sense an increasing need to bring out the positive applications for blockchains. Thus, pitching it as a general-purpose technology, rather than only being a medium for facilitating asset trading.

Last month, Polygon launched an open database consisting of use cases for blockchain technology. Furthermore, the database hosts a catalog of more than 300 applications and a number of use cases.

These are spread across different business verticals, blockchain networks, and geographies.

Realistic or not, here’s MATIC’s market cap in BTC terms

Transactions yet to rebound to yearly peaks

With a growing demand for its network, the transaction count was expected to increase. Furthermore, daily transactions have plateaued over the past two months after witnessing intense activity in March and April as per DeFiLlama.