Abstract Chain Analysis: How to Build a Consumer-Oriented Public Chain Ecosystem?

TL;DR

• Abstract Chain is a consumer-centric blockchain launched in January 2025, dedicated to promoting the popularization of cryptographic technology and building an accessible and participatory platform.
• Abstract Chain provides a seamless user experience through native account abstraction and leverages the established Pudgy Penguins and PENGU fan community to offer a unique user base.
• 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 to join the ecosystem.
• The live streaming platform has attracted over 10,000 hosts, with an average daily user participation time of over 7 minutes 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: the number of registered wallet users is about 2 million, the daily active wallets are about 100,000, and the average daily on-chain transactions are about 700,000, reflecting the high activity of the platform.

Introduction

Abstract Chain is a Layer 2 blockchain based on Ethereum, established in March 2024, utilizing zero-knowledge encryption ( zk ) technology, aimed at providing mainstream consumers with a seamless and differentiated Web3 experience. The chain adopts 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, providing scalability and security guarantees for consumer applications.

Although the blockchain ecosystem is highly competitive, there is still a distance to truly achieve widespread mainstream user adoption. Early projects like Arbitrum and Optimism have successfully addressed performance bottlenecks and attracted crypto-native users. However, to realize what is referred to as "consumer-grade crypto", it is necessary to build Web3 platforms with low barriers to entry and high user retention.

Early explorations like TON and Kaia aimed to reduce user acquisition costs by integrating Web3 into mainstream social platforms such as Telegram and LINE. This has achieved some success, but in mature markets like Europe and the US, relying on the openness of these Web2 platform ecosystems remains challenging.

Abstract Chain has chosen a different path: directly embedding encryption technology into consumer applications, encouraging users to use it unconsciously.

The mainnet of Abstract will launch in January 2025, alongside the introduction of the Portal platform, which serves as an entry point for the gaming and application ecosystem. The Portal is not just a content showcase but a highly interactive online destination that integrates sections such as live streaming, rewards, collectibles, and Spotlight( app recommendations), creating a sticky user experience. This strategy differentiates Abstract from other chains and positions it as a core engine for growth.

The business flywheel of Abstract

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

The network effects of this model mainly rely on the on-chain assets held by users. For example, Ethereum was initially driven by the NFT boom, while Solana has recently gained popularity due to meme coins. These native assets bind users to the chain while also attracting developers to build applications around trends. From a business perspective, this approach is akin to having customers use a specific payment card that can only be spent at certain stores.

Abstract Chain has taken a different approach. It has not centered around asset accumulation, but has built the portal platform (Portal) as a dynamic online hub designed around the following three main functions:

• Basic Services: Provide tools such as wallets, fiat entry, and token exchange, enabling access to the ecosystem.
• User Interaction: Live streaming and reward center enhance user engagement.
• Project Discovery: The Spotlight section guides users to explore new content.

This system enables new users to quickly engage with Web3, while existing users are continuously drawn back by new content.

Metaphorically likened to a shopping mall, the operation of Abstract is similar to a thriving large shopping center: integrating multiple stores in one place, continuously hosting performance events on a central stage, maintaining high foot traffic and activity, enticing customers to return for enjoyment.

The following analysis will focus on three key growth areas: User Acquisition >> Portal Hosting >> Application Ecosystem Drive. Together, these form the core components of the Abstract platform's business flywheel.

A. User Guide

The initial user base of Abstract largely relies on its association with the Pudgy Penguins IP and its extremely simple and user-friendly design concept. While fans of Pudgy and PENGU continue to flock to Abstract, its smooth onboarding experience gives the chain a significant advantage in converting interest into actual users.

Easy to Get Started Experience

Abstract Chain is dedicated to simplifying the user onboarding process by eliminating traditional barriers. With the native account abstraction feature, users can 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 and transfer operations are as intuitive as browsing the web or playing games. Additionally, the chain utilizes zero-knowledge rollup technology, ensuring extremely low gas fees and high parallel processing capabilities, significantly reducing the cost of on-chain interactions.

Once users create an account, they can immediately access all basic crypto tools through the Portal. The wallet in the upper left corner supports real-time trading features and offers deposit options, including bridging and fiat recharge services, for quick fund deposits. The trading section of the Portal supports native token swaps without the need to search for third-party services. These integrated features collectively lower the barriers to entry, enabling users to seamlessly enter the on-chain world.

Using Pudgy fans as the initial user base

Abstract leverages the large and active fan community of Pudgy Penguins. Pudgy Penguins has over 3 million followers on X(, 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 on marketing banners, user avatars, live stream stickers, etc. For PENGU holders, Portal also has practical use - they can use PENGU tokens to tip during live streams, which is one of the use cases for PENGU on Abstract.

The synergy between this IP and the platform's features significantly promoted the growth of Portal, activating 1.61 million wallets within 2 months after the mainnet launch.

Moreover, due to the widespread fan base of Pudgy and PENGU, Abstract's user profile differs from other consumer-grade crypto ecosystems like TON and Kaia. Abstract attracts a large number of users in developed markets—17.4% of which are from the United States, while the rest are mainly distributed across European and East Asian countries such as Germany, the United Kingdom, France, Japan, South Korea, Singapore, and Hong Kong. This user group is very valuable for consumer-oriented applications, providing a strong foundation for Abstract to build a high-quality consumer ecosystem.

( B. Portal Platform

The portal platform of Abstract is called "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 impressive. 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 users of the Abstract Global Wallet ) AGW (, 40% return to make at least one transaction within 30 days of creating their wallet, a retention rate that is far higher than the industry average.

Live Streaming Feature

Live streaming is a media loved by young people worldwide. Web2 platforms like Twitch attract 240 million unique users every month. For Abstract, live streaming is not only a reason for user return visits but also enhances the platform's stickiness and monetization capability. Live streaming has been proven to promote game and merchandise sales, which aligns closely 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(. Additionally, the "Follow" and "Recommend" features help to build a community atmosphere, promoting continuous user visits 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 have received tips as high as 9 ETH in a single broadcast. The top 100 streamers account for a significant portion of the platform's tip revenue, with individual monthly incomes ranging between $4,000 and $5,000, and having over 4,000 interactive users.

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Reward and Reputation System

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

Abstract uses off-chain XP as the main incentive tool to encourage 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 connecting social accounts or using recommended applications.

At the same time, through the badge function, users can showcase their achievements. Depending on behavior and task levels, different types of badges will be issued as on-chain NFTs or displayed within the app, becoming part of the user identity and gradually forming a complete reputation system.

The system is currently still in its early stages, with functionality 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 comprehensive loyalty and reputation framework that covers both developers and users.

Application Discovery

Portal also serves as the "app store" for the Abstract ecosystem. In the "Discover" section, high-quality applications selected by user votes are showcased, categorized into: 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 immediately without a complicated registration process.

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) C. Application Ecosystem

For any blockchain, ultimate success depends on whether it can cultivate a rich and diverse application ecosystem. For Abstract, its mission is to attract "interesting" consumer-facing applications from Web3 projects and mainstream institutions.

Web3 project

Abstract is fully compatible with 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 subsidies. Developers can receive each based on user participation.