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 widespread adoption of cryptocurrency technology and building a platform that is accessible and highly engaging.
• Abstract Chain offers a smooth user experience with native account abstraction, leveraging the established fan base of Pudgy Penguins and $PENGU to provide differentiated value through its unique user structure.
• Abstract's growth strategy focuses on 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 users participating for an average of more than 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 applications: 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 as a Layer 2 blockchain based on Ethereum, utilizing zero-knowledge proof (zk) technology, aimed at providing mainstream end users 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, ensuring scalability and security for applications targeted at end users.

The competition in the blockchain ecosystem is fierce, but there is still a way to go before真正大规模的主流用户采用. Early projects like Arbitrum and Optimism have successfully addressed performance bottlenecks, attracting crypto-native users. However, to achieve what is known as "Crypto for end users", it is necessary to build a Web3 platform with low barriers to entry and high stickiness.

Early explorations like TON and Kaia attempted 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, this model, which relies on the openness of Web2 platform ecosystems, remains difficult to implement.

Abstract Chain has chosen a different path: to promote the direct integration of cryptographic technology into applications aimed at end users, allowing users to use it seamlessly.

The mainnet of Abstract will be launched in January 2025, along with the portal platform "Portal" as the gateway to the gaming and application ecosystem. Portal is not only a window for content display but also a highly interactive online destination that integrates live streaming, rewards, collectibles, Spotlight( application recommendations), and other sections to create a sticky user experience. This strategy differentiates Abstract from other chains and becomes the core engine for its growth.

The flywheel effect of Abstract

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

The network effects of these models mainly 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 chain, while also encouraging developers to build applications around trends. Using a business analogy, this approach is like getting customers to use a specific payment card that can only be used at certain stores.

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

• Basic Services: Offers tools such as wallets, fiat entry points, token swaps, etc., providing access to the ecosystem.
• User Interaction: Increase user engagement through live broadcasts and the rewards center.
• Project Discovery: Guide users to explore new content through the Spotlight section.

This system allows new users to quickly enter Web3, while existing users return continuously due to new content.

If we compare it to a shopping mall, Abstract is like operating a thriving large shopping center: integrating multiple stores in one place, continuously holding performances on a central stage, maintaining high traffic and activity, and ensuring customers keep coming back to enjoy.

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

A. User Guidance

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

Simple onboarding experience

Abstract Chain is dedicated to eliminating traditional barriers and simplifying the onboarding process for users. Its native account abstraction feature allows users to easily create Abstract accounts and enable 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. Furthermore, the chain employs ZK rollup technology, ensuring extremely low gas fees and high parallel processing capabilities, significantly reducing the cost of on-chain interactions.

After users create an account, they can immediately use all basic cryptocurrency tools through the Portal. The wallet in the upper left corner supports real-time trading functions and provides deposit options including bridging and fiat recharge services for quick fund deposits. The trading section of the Portal supports native coin exchanges without the need to search for third-party services. These integrated features collectively lower the barrier to entry, 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(, former Twitter), Instagram, and TikTok, with over 500,000 $PENGU token holders, providing a ready user pool for the Abstract chain.

In the Abstract Portal, the image of Pudgy Penguins is as ubiquitous as Mickey Mouse in Disneyland: appearing on marketing banners, user avatars, live stickers, and more. For $PENGU holders, the Portal also has practical uses---they can tip in live streams using $PENGU tokens, which is one of the use cases for $PENGU on Abstract.

The synergy between this IP and platform functions significantly promoted the growth of Portal—1.61 million wallets were activated within two months after the mainnet launch.

More importantly, due to the widespread distribution of Pudgy and $PENGU fans, the user profile of Abstract is also different from other end-user-focused crypto ecosystems like TON and Kaia. Abstract attracts a large number of users from developed markets—17.4% of which are from the United States, while the remaining users are mainly distributed across Europe and East Asian countries such as ( Germany, the United Kingdom, France, Japan, South Korea, Singapore, Hong Kong, etc. ). This user group is highly valuable for end-user applications and provides 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" ( 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 users spending an average of over 7 minutes per day. 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 significantly higher than the industry average.

Live Streaming Feature

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

The "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 build a community atmosphere, promoting ongoing user engagement 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 per live stream. 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 more than 4,000 interactive users.

Reward and Reputation System

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

Abstract uses off-chain XP as the main 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 actions.

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 a part of the user's identity and gradually forming a complete reputation system.

Currently, this system is 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 throughout the Abstract ecosystem, evolving into a loyalty and reputation framework that covers the entire ecosystem, serving both developers and users.

Application Discovery

Portal also serves as the "app store" for the Abstract ecosystem. The "Discover" section showcases excellent applications voted by users, categorized into: digital collectibles, games, NFTs, social, AI, trading, prediction markets, and more. Users can log in to these applications directly using their Abstract ID, allowing them to start experiencing immediately without a cumbersome registration process.

C. Application Ecosystem

For any blockchain, ultimate success depends on the 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" ( to provide developers with market support, technical guidance, and a monthly stipend. Developers can earn XP rewards each month based on user participation, and outstanding projects have the opportunity to receive additional incentives. The live streaming platform also promotes featured games through embedded links to drive traffic to applications.

Games are bringing Web2 users