Polygon gains 83% in a month, but data shows the project is losing ground

MATIC's market capitalization is 69% below its all-time high, and the network's TVL and DApp data has not increased recently .

Polygon (MATIC) had a promising month of July, with an impressive gain of 83% in 30 days. The smart contract platform uses Layer 2 scaling and aims to become an essential Web3 infrastructure solution. However, investors question whether the recovery is sustainable, given lackluster filings and active address data.

MATIC/USD on FTX. Source: TradingView

According to Cointelegraph, Polygon rallied after being selected for the Walt Disney Company's accelerator program to build augmented reality solutions, non-fungible tokens ( NFT) and artificial intelligence.

Polygon announced July 20 plans to implement an Ethereum Zero-Knowledge Virtual Machine (zkEVM), which aggregates multiple transactions before relaying them to the Ethereum (ETH) blockchain. In a recent interview with Cointelegraph, Polygon co-founder Mihailo Bjelic said that this solution will reduce Ethereum fees by 90% and increase throughput to 40-50 transactions per second.

Another reason for Polygon's rally was the growing number of platforms that started offering liquid staking for MATIC tokens, which allowed holders to earn additional rewards. Examples include Lido Finance,...