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

Summary

• Abstract Chain will be launched in January 2025 as a user-centric blockchain dedicated to promoting the large-scale application of cryptographic technology and building an easily accessible and highly participatory platform.
• Abstract Chain offers an original account abstraction that brings a comfortable user experience, leveraging the established fan base of Pudgy Penguins and $PENGU to provide 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 more than 7 minutes on average 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 an average of 700,000 on-chain transactions per day, reflecting the platform's high activity level.

Introduction

Abstract Chain was established in March 2024 and is a Layer 2 blockchain based on Ethereum, utilizing zero-knowledge proof (zk) technology, dedicated to 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, providing scalability and security guarantees for applications aimed at end-users.

The competition in the blockchain ecosystem is fierce, but we are still far from true large-scale mainstream user adoption. Early projects like Arbitrum and Optimism successfully addressed performance bottlenecks and attracted crypto-native users. However, to achieve what is termed "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 such as Telegram and LINE. This achieved some success, but this model, which relies on the openness of Web2 platform ecosystems, is still difficult to implement in mature markets like Europe and the United States.

Abstract Chain has chosen another path: to promote the direct embedding 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 introduction of the portal platform "Portal" as an entry point for the gaming and application ecosystem. Portal is not only a content showcase window but also a highly interactive online destination, integrating sections like live streaming, rewards, collectibles, and Spotlight( application recommendations), creating a sticky user experience. This strategy differentiates Abstract from other chains, becoming the core engine of its growth.

Abstract Flywheel

The development of a new chain typically begins 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 incentivize participation through methods such as 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 recently gained popularity due to meme coins. These native assets bind users to the blockchain, while also encouraging developers to build applications around the trends. From a business perspective, this approach is similar to making customers use a specific payment card that can only be spent in certain stores.

Abstract Chain has taken a different approach. It is not centered around asset accumulation, but instead 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., to enable access to the ecosystem.
• User Interaction: Enhance user engagement through live streaming 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 continuously recalled by new content.

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

The following analysis will focus on three key growth areas: user traffic >> portal hosting >> application ecosystem driving. These collectively form the core components of the Abstract platform's business flywheel.

A. User Guide

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 are continuously flocking 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 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 enable wallets just like registering for a regular website account. Users do not need to manage private keys, nor do they need to frequently sign transactions. Account recovery and transfer operations are as simple as browsing the web or playing games. Additionally, this chain employs ZK rollup technology, ensuring extremely low gas fees and high concurrency processing capabilities, significantly reducing on-chain interaction costs.

After creating an account, users can immediately access all basic cryptocurrency tools through the Portal. The wallet in the upper left corner supports real-time trading functions and offers recharge options including cross-chain and fiat currency deposit services, enabling 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 barriers to entry, allowing 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 fans on X( original Twitter), Instagram, and TikTok, as well as more than 500,000 $PENGU token holders, providing a ready user pool for the Abstract chain.

In Abstract's Portal, the image of Pudgy Penguins is ubiquitous, much like Mickey Mouse in Disneyland: appearing on marketing banners, user avatars, live stream stickers, and more. For $PENGU holders, the Portal also has practical uses---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 functions greatly facilitated the growth of Portal---161,000 wallets were activated within 2 months after the mainnet launch.

More importantly, due to the widespread distribution of Pudgy and $PENGU fans, Abstract's user profile is also different from other end-user-focused crypto ecosystems like TON and Kaia. Abstract attracts many users from developed markets—17.4% from the United States, while the remaining users are mainly distributed across European and East Asian countries such as ( Germany, the United Kingdom, France, Japan, South Korea, Singapore, and Hong Kong, among others ). 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 known as "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 averaging over 7 minutes of daily stay time. 40% of Abstract global wallet (AGW) users return to transact at least once within 30 days of creating their wallet, which is a retention rate significantly higher than the industry average.

Live streaming feature

Live streaming is a media format favored by young people around the world. 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, closely aligning 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, and other means, 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 continuous user engagement and social sharing.

By 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 earn up to 9 ETH in tips per live 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.

Reward and Reputation System

Many crypto projects encourage early user participation through point systems, but a truly complete loyalty and reputation system in the on-chain ecosystem is still rare. Abstract uses the 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. Depending on behavior and task levels, different types of badges will be minted as on-chain NFTs or displayed within the app, 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 across the entire Abstract ecosystem, evolving into a loyalty and reputation framework that covers the whole ecosystem, targeting both developers and users.

Application Discovery

Portal also serves as the "app store" for the Abstract ecosystem. The "Discover" section showcases high-quality applications selected by user votes, 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 the cumbersome registration process.

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" applications aimed at end users from Web3 projects and mainstream enterprises.

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 stipends. Developers can earn XP rewards monthly based on user participation, and outstanding projects have the opportunity to receive additional incentives. The live streaming platform also promotes features through embedded links.