Polygon announces the integration of Cosmos into AggLayer via Union, facilitating cross-chain transactions and inter-network communication. This integration will utilize zero-knowledge proofs to enable sovereign chains to safely share liquidity and state. Union aims to ensure seamless asset transfer and message passing between IBC and all chains within AggLayer.

This integration with Union is just one of AggLayer's many integrations, including Polygon zkEVM, X Layer, and Astar zkEVM. With these integrations, AggLayer is poised to become one of the largest crypto networks in terms of transaction volume, aggregated users, and total value locked (TVL).

Polygon sees this integration as a significant step not only for its own ecosystem but also for Cosmos, Union, and AggLayer as a whole. It opens up opportunities for transactions, cross-network development, smoother user experiences, and access to aggregated users.

Cosmos was chosen for integration due to its architecture, which positions it well to facilitate shared liquidity and state across sovereign chains. This integration is seen as a win-win-win scenario, benefiting users by allowing the free flow of native asset liquidity across networks, fostering technical innovation, removing liquidity movement restrictions, and providing a single-point connection for interoperability.

The announcement has positively impacted MATIC, Polygon's native token, with a 1.28% increase in the last 24 hours. However, its value has decreased by 24.88% and 30.15% in the last 7 days and 30 days, respectively, following the announcement of X Layer's launch by OKX.

Looking ahead, the effectiveness of the integration and the distribution of benefits among developers and users will determine its success in maintaining balance within the ecosystem.