Abstract Chain Panorama Analysis: How to Build a Public Chain Ecosystem for End Users?

Summary

• Abstract Chain will launch in January 2025 as a user-centric blockchain dedicated to promoting the mass adoption of cryptocurrency technology and building an easily accessible and engaging platform.
• Abstract Chain offers a comfortable user experience brought by native account abstraction, fully leveraging the established fan base of Pudgy Penguins and $PENGU, providing differentiated value through its unique user structure.
• Abstract's growth strategy revolves around building a digital entertainment theme park: owning its own portal platform, integrating live streaming and reward systems, and attracting application developers into the ecosystem.
• This live streaming platform has attracted over 10,000 broadcasters, with users participating for an average of over 7 minutes per day, and a 30-day retention rate of 40%. The live streaming feature has become one of the main competitive advantages.
• Abstract Chain has currently achieved large-scale application: approximately 2 million registered wallet users, about 100,000 daily active wallets, and around 700,000 daily on-chain transactions, reflecting the platform's high level of activity.

Introduction

Abstract Chain was established in March 2024 and is a Layer 2 blockchain based on Ethereum, utilizing zero-knowledge proof technology (zk), dedicated to providing seamless and differentiated Web3 experiences for mainstream end users. The chain employs an account abstraction mechanism, simplifying wallet setup and on-chain signing processes, thereby lowering the entry barrier. Through zk-rollup technology, Abstract offers low-cost, high-throughput on-chain transaction capabilities, ensuring scalability and security for applications aimed at end users.

The competition in the blockchain ecosystem is fierce, but there is still some distance to go before achieving true large-scale mainstream user adoption. Early projects like Arbitrum and Optimism have successfully addressed performance bottlenecks, attracting crypto-native users. However, to realize the so-called "Crypto for end users", it is necessary to build a Web3 platform that combines low barriers to entry with high user engagement.

Early explorations like TON and Kaia attempted to reduce user acquisition costs by integrating Web3 into mainstream social platforms like Telegram and LINE. This has achieved some success, but this model, which relies on the ecological openness of Web2 platforms, is still difficult to realize in mature markets such as Europe and the United States.

Abstract Chain has chosen a different path: to promote the direct embedding of cryptographic technology into applications aimed at end-users, allowing users to use it directly without awareness.

The mainnet of Abstract will be launched in January 2025, along with the "Portal" platform as an entry point for the gaming and application ecosystem. Portal is not only a content showcase but also a highly interactive online destination, integrating sections such as live broadcasts, rewards, collectibles, and Spotlight( app recommendations), creating a sticky user experience. This strategy differentiates Abstract from other chains, becoming the core engine of its growth.

Abstract's flywheel

The development of a new chain typically starts with building a developer ecosystem, gradually increasing the on-chain locked value ( TVL ) through on-chain application development and the introduction of DeFi protocols. To attract users, projects often encourage participation through methods like airdrops.

The network effects of these models primarily rely on the on-chain assets held by users. For example, Ethereum was initially driven by the NFT craze, while Solana has recently gained popularity due to meme coins. These native assets bind users to the blockchain while encouraging developers to build applications around trends. From a commercial analogy, this approach is similar to having customers use a specific payment card that can only be spent at certain stores.

Abstract Chain takes a different approach. Instead of focusing on asset accumulation, it builds the portal platform (Portal) as a dynamic online hub, designed around the following three main functions:

• Basic Services: Providing tools such as wallets, fiat entry, token exchange, etc., enabling access to the ecosystem.
• User Interaction: Enhance user engagement through live broadcasts and the rewards center
• Project Discovery: Guiding users to explore new content through the Spotlight section

This system allows new users to quickly enter Web3, while existing users are constantly recalled by new content.

Metaphorically likened to a shopping center, Abstract is similar to running a thriving large shopping mall: integrating multiple stores in one place, with a central stage continuously hosting performances, maintaining high traffic and activity, encouraging customers to keep coming back for enjoyment.

The following analysis focuses on three key growth areas: user traffic >> portal engagement >> application ecosystem drive. Together, these constitute the core components of the Abstract platform's business flywheel.

A. User Guide

The initial user base of Abstract largely relies on the relevance of the Pudgy Penguins IP and its extremely simple and user-friendly design concept. Fans of Pudgy and $PENGU continue to flow into Abstract, but its smooth onboarding experience gives the chain a significant advantage in converting attention into actual users.

Simple onboarding experience

Abstract Chain is committed to eliminating traditional barriers and simplifying the onboarding process for users. Its native account abstraction feature allows users to easily create Abstract accounts and activate wallets just like registering for a regular website account. Users do not need to manage private keys or frequently sign transactions. Account recovery or transfer operations feel as simple as browsing the web or playing games. Additionally, the chain uses ZK Rollup technology to ensure extremely low gas fees and high concurrent processing capabilities, significantly reducing the cost of on-chain interactions.

After users create an account, they can immediately use all basic crypto tools through the Portal. The wallet in the upper left corner supports real-time trading functions and provides deposit options including cross-chain and fiat currency recharge services, enabling quick fund deposits. The trading section of the Portal supports native coin exchanges without the need to seek additional third-party services. These integrated features collectively lower the entry barriers, allowing users to access the on-chain world without obstacles.

Using Pudgy fans as the initial user base

Abstract leverages the large and active fan community owned by Pudgy Penguins. Pudgy Penguins has over 3 million followers on X( original Twitter), Instagram, and TikTok, with over 500,000 $PENGU token holders, providing a ready user pool for the Abstract chain.

In Abstract's Portal, the image of Pudgy Penguins is everywhere, just like Mickey Mouse in Disneyland: appearing in marketing banners, user avatars, live stickers, and more. For $PENGU holders, the Portal also has practical uses---they can use $PENGU tokens to tip during live broadcasts, which is one of the use cases of $PENGU on Abstract.

The synergy between this IP and the platform's features has greatly facilitated the growth of Portal—within two months of the mainnet launch, 1.61 million wallets were activated.

Moreover, due to the widespread distribution of Pudgy and $PENGU fans, the user profile of Abstract differs from other end-user-focused cryptocurrency ecosystems like TON and Kaia. Abstract has attracted a large number of users from developed markets—17.4% of whom are from the United States, while the remaining users are primarily distributed across European and East Asian countries such as ( Germany, the United Kingdom, France, Japan, South Korea, Singapore, Hong Kong, and so on ). This user group is highly valuable for end-user applications, providing a strong foundation for Abstract to build a high-quality consumption ecosystem.

B. Portal Platform

The Abstract portal platform is known as "Digital Theme Park of Fun" ( Digital Theme Park of Fun ), which is not only a place for users to discover popular applications and creators but also the core interface for users to manage assets and rewards.

Early data shows that Portal's performance is quite outstanding. As of March 2025, Portal has over 600,000 monthly active users ( MAU ) and 100,000 daily active users ( DAU ), with an average daily user stay time of over 7 minutes. Among Abstract Global Wallet ( AGW ) users, 40% return to trade at least once within 30 days of creating their wallet, which greatly exceeds the industry average retention rate.

Live streaming feature

Live streaming is a media format favored by young people worldwide. Web2 platforms like Twitch attract 240 million unique users every month globally. For Abstract, live streaming is not only a reason for users to return but also enhances platform stickiness and monetization potential. Live streaming has been proven to boost game and merchandise sales, aligning perfectly with Abstract's goal of building an entertainment ecosystem.

The "Watch-to-Earn" ( Stream-to-Earn ) model introduced by Abstract encourages user participation through rewards, comments, gifts, etc., allowing both streamers and viewers to earn tokens, rewards, or experience points ( XP ). In addition, the "Follow" and "Recommend" features help build a community atmosphere, promoting user retention and social sharing.

As of the end of April 2025, Portal has gathered over 1,000 streamers, with a total viewing time exceeding 500,000 hours. Some top streamers can receive tips of up to 9 ETH in a single live broadcast. The top 100 streamers account for a significant portion of the platform's tip income, with individual monthly earnings ranging from $4,000 to $5,000, and they have over 4,000 interactive users.

Reward and Reputation System

Many crypto projects encourage early user participation through point mechanisms, but truly complete loyalty and reputation systems in the on-chain ecosystem are still rare. Abstract uses XP and badge system (Badges) to build such infrastructure.

Abstract uses off-chain XP as the primary incentive tool to reward participants who meet target behaviors. Content creators can earn XP through live interactions, developers can earn XP by completing user activity tasks, and regular users can earn XP by linking social accounts, using recommended applications, and other behaviors.

At the same time, the badge feature allows users to showcase their achievements. Different types of badges will be minted as on-chain NFTs or displayed within the app based on behavior and task levels, becoming part of the user's identity and gradually forming a complete reputation system.

Currently, this system is still in its early stages, and its functions are limited to within the Portal. However, in the future, the XP and badge system is expected to expand to the entire Abstract ecosystem, evolving into a loyalty and reputation framework that spans the entire ecosystem, while catering to both developers and users.

Application Discovery

Portal also serves as the "app store" for the Abstract ecosystem. The "Discovery" section showcases high-quality applications selected by user votes, categorized by: digital collectibles, games, NFTs, social, AI, trading, prediction markets, etc. Users can log in to these applications directly using their Abstract ID, allowing them to start experiencing without the cumbersome registration process.

C. Application Ecosystem

For any blockchain, ultimate success depends on its ability to cultivate a rich and diverse application ecosystem. For Abstract, its mission is to attract "interesting" applications aimed at end users from Web3 projects and mainstream enterprises.

Web3 project

Abstract is fully compatible with the EVM( Ethereum Virtual Machine), supporting the migration of existing Ethereum smart contracts and facilitating cross-chain deployment. The platform has launched the "Builder-in-Residence Program"(, providing developers with market support, technical guidance, and monthly allowances. Developers can earn XP rewards monthly based on user engagement, and outstanding projects have the opportunity for additional incentives. The live streaming platform also promotes featured games through embedded links to drive traffic to applications.

The game is to use Web2