Abstract Chain Overview Interpretation: How to Build a Consumer-Friendly Public Chain Ecosystem?

TL;DR

• Abstract Chain is a consumer-centric blockchain launched in January 2025, dedicated to promoting the popularization of encryption technology and building an accessible and engaging platform.
• Abstract Chain provides a seamless user experience through native account abstraction and leverages the benefits of the already established Pudgy Penguins( fat penguins) and the PENGU fan community to offer differentiated value with a unique user structure.
• Abstract's growth strategy revolves around the establishment of a digital entertainment theme park: owning a proprietary portal platform, integrating live streaming and a reward system, and attracting application developers to the ecosystem.
• This live streaming platform has already attracted over 10,000 streamers, with an average daily user engagement time of over 7 minutes and a 30-day retention rate of 40%, making its live features one of its key competitive advantages.
• Abstract Chain has currently achieved large-scale adoption: the number of registered wallet users is approximately 2 million, with about 100,000 daily active wallets and around 700,000 daily on-chain transactions, reflecting the high activity level of the platform.

Introduction

Abstract Chain is an Ethereum-based Layer 2 blockchain established in March 2024, dedicated to providing a seamless and differentiated Web3 experience to mainstream consumers by adopting zero-knowledge encryption ( zk ) technology. This chain adopts an account abstraction mechanism to simplify wallet setup and on-chain signing processes, lowering the entry barrier. Through zk-rollup technology, Abstract offers low-cost, high-throughput on-chain transaction capabilities, ensuring scalability and security for consumer applications.

The competition in the blockchain ecosystem is fierce, but there is still a long way to go until true mass mainstream user adoption. Early projects like Arbitrum and Optimism have successfully addressed performance bottlenecks and attracted crypto-native users. However, to realize so-called "consumer-grade cryptocurrencies," it is necessary to build Web3 platforms with low entry barriers and high stickiness.

Initial explorations like TON and Kaia attempted to lower user acquisition costs by integrating Web3 with mainstream social platforms like Telegram and LINE. While they achieved some success, models that rely on the openness of these Web2 platform ecosystems still face challenges in mature markets like Europe and the United States.

Abstract Chain has taken a different path: it promotes the direct embedding of encryption technology into consumer applications, allowing users to use it directly without being aware of it.

The mainnet of Abstract was launched in January 2025, along with the release of the portal platform Portal, which serves as the entry point to the gaming and application ecosystem. Portal is not just a simple content display window, but a highly interactive online destination that integrates sections such as live streaming, rewards, collectibles, and Spotlight( app recommendations) to create a sticky user experience. This strategy has differentiated Abstract from other chains and has become the key engine for growth.

Abstract Business Flywheel

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

The network effects of such models primarily depend on the on-chain assets held by users. For example, Ethereum was initially driven by the NFT boom, while Solana has gained popularity recently due to meme coins. These native assets bind users to the chain while simultaneously encouraging developers to build applications around trends. Commercially speaking, this approach is similar to making customers use a specific payment card, allowing them to spend only at certain stores.

Abstract Chain has taken a different approach. Rather than focusing on asset accumulation, it has built a dynamic online hub designed around the following three key features of the portal platform (Portal):

• Basic services: Provides tools such as wallets, fiat currency gateways, and token exchanges, enabling access to the ecosystem.
• User Interaction: Live streaming and the rewards center enhance user engagement.
• Project Discovery: The Spotlight section guides users to explore new content.

This system allows new users to quickly access Web3, while existing users are continuously re-engaged by new content.

To compare it to a shopping mall, Abstract is similar to the operation of a thriving large shopping center: it integrates various stores in one place and continuously hosts performances on a central stage to maintain high foot traffic and activity levels, allowing customers to keep coming back and enjoy.

The following analysis revolves around three key growth areas: user acquisition >> portal adoption >> application ecosystem driving. Together, these form the core components of the Abstract platform business flywheel.

Platform Business Flywheel: Users > Portal Frontend > Ecosystem > Users

A. User Guide

The initial user base of Abstract heavily relies on its association with Pudgy Penguins(, the chubby penguins) IP, and an extremely simple and user-friendly design philosophy. While fans of Pudgy and PENGU continue to flow into Abstract, this chain has a distinct advantage in converting interest into actual users due to its seamless onboarding experience.

Easy start experience

Abstract Chain is dedicated to simplifying the user onboarding process by removing traditional barriers. With its 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 sign transactions frequently. Account recovery and remittance operations are as intuitive as navigating a web page or playing a game. Furthermore, the chain adopts zero-knowledge rollup technology, ensuring very low gas costs and high parallel processing capabilities, significantly reducing on-chain interaction costs.

Once a user creates an account, they can immediately use all basic crypto tools through the Portal. The wallet located at the top left of the page supports real-time trading functionality and offers charging options that include bridging and fiat currency deposit services, enabling quick fund deposits. The trading section of the Portal supports native coin exchanges, eliminating the need to search for additional third-party services. These integrated features lower the barriers to usage, allowing users to access the on-chain world without obstacles.

Pudgy fans as an initial user base

Abstract leverages the large and active fan community that Pudgy Penguins has. Pudgy Penguins has over 3 million followers across Twitter, Instagram, and TikTok, and boasts more than 500,000 PENGU token holders, providing an existing user pool for the Abstract chain.

In the Abstract's Portal, the images of Pudgy Penguins are everywhere like Mickey Mouse in Disneyland: appearing on marketing banners, user avatars, live streaming stickers, and more. The Portal also has real-world utility for PENGU holders—they can use PENGU tokens to tip during live streams, which is one of the scenarios where PENGU can be used in Abstract.

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

The more important point is that, due to the widespread distribution of Pudgy and PENGU fans, Abstract's user profile differs from other consumer-grade cryptocurrency ecosystems like TON and Kaia. Abstract has attracted many users in developed markets—17.4% of whom are from the United States, while the remaining users are mainly distributed across European and East Asian countries such as (Germany, the UK, France, Japan, South Korea, Singapore, and Hong Kong). This user group is highly valuable for consumer-oriented applications and provides a strong foundation for Abstract to build a high-quality consumer ecosystem.

Source: Abstract Official

( B. Portal Platform

The portal platform of Abstract is called "Digital Theme Park of Fun)" and serves not only as a place for users to discover popular applications and creators but also as a key interface for users to manage their assets and rewards.

According to initial data, the performance of Portal 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 exceeding 7 minutes. Among Abstract's global wallet)AGW( users, 40% return for at least one transaction within 30 days of wallet creation, which significantly exceeds the industry average.

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Live streaming feature

Live streaming is a media that young people around the world love. Web2 platforms like Twitch attract 240 million unique users globally each month. For Abstract, live streaming is not only the reason users come back but also enhances the platform's stickiness and monetization potential. Live streaming has proven to facilitate gaming and merchandise sales, showing a high alignment with Abstract's goal of building an entertainment ecosystem.

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The "Stream-to-Earn" model introduced by Abstract encourages user participation through methods such as tips, comments, and gifts, allowing both streamers and viewers to earn tokens, rewards, or experience points XP. Additionally, the "follow" and "recommend" features help build community atmosphere and promote users' continuous visits and social dissemination.

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

Reward and Reputation System

Many cryptocurrency projects encourage early user participation through point mechanisms, but a truly complete loyalty and reputation system in on-chain ecosystems is still scarce. Abstract builds this infrastructure using the XP and badge system )Badges(.

The abstract uses external XP as a primary incentive tool to encourage participants to engage in desired behaviors. Content creators can earn XP through live interactions, developers can earn XP by completing user activity tasks, and general users can earn XP through actions such as connecting social accounts or using referral apps.

At the same time, through the badge feature, users can showcase their achievements. Various types of badges are issued as on-chain NFTs or displayed within the app, becoming part of the user's identity and gradually forming a complete reputation system.

Currently, this system is still in its initial stages, and its functionalities are limited within the Portal. However, in the future, it is expected that the XP and badge systems will expand throughout the Abstract ecosystem, developing into a loyalty and reputation framework that covers the entire ecosystem for both developers and users.

Application Discovery

The Portal also serves as the "app store" of the Abstract ecosystem. The "Discover" section showcases outstanding applications selected by user votes and is categorized into: digital collectibles, games, NFTs, social, AI, trading, prediction markets, etc. Users can log in to these applications directly using their Abstract ID and start experiencing them immediately without a complicated registration process.

) C. Application Ecosystem

The ultimate success for any blockchain depends on its ability to foster a rich and diverse application ecosystem. For Abstract, that mission is to attract consumer-oriented "fun" 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"( to provide developers with market support, technical guidance, and monthly grants. Developers can earn monthly XP rewards based on user engagement, and projects that perform exceptionally well have the opportunity to receive additional incentives. The live streaming platform also promotes featured games through embedded links to drive traffic to the application.

Games are an important entry point for attracting Web 2 users to the Web 3 world. Among the top 10 most popular applications on Abstract, 8 are gaming products. Popular games include P2E World, BigCoin, Bitcoin Mining Game, adventure games like On-Chain Heroes and LOL Land, P2E IP games launched by YGG, and community projects like Gigaverse.

Abstract has collaborated with NFT platforms such as Magic Eden and OpenSea to realize the buying and trading of game assets, enriching the game ecosystem.

Currently, Abstract has deployed over 120 projects, including social applications such as "Gacha", trading platforms like "BuzzFun" and "Myriad", and games such as "Gigaverse", "Onchain Heroes", and "Multiplier".

Due to Abstract's strong user base, new projects can quickly gain attention. For example, 'Duper' and 'Witty' attracted 50,000 users within just a few days of their launch, while the prediction market 'Myriad' garnered around 500,000 users within two months of its release. These success stories greatly enhance developer confidence and encourage more teams to invest in building.

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mainstream institutions

Abstract actively collaborates with consumer-oriented organizations such as music and sports brands to migrate their Web3 products to the blockchain. For example, digital collectibles like NBA Top Shots are issued in NFT format, allowing fans to buy, hold, and trade them. These sports and music fans show a high alignment with Abstract's consumer target.

Abstract has natural advantages for institutions looking for partners on the chain—Ethereum-level security, a user-friendly interface, and a low barrier to entry approach are all key selling points. While specific collaborations have not yet been officially announced, once they begin, Abstract is expected to bring many mainstream Web3 users who will truly immerse themselves in the on-chain experience.

Recently, Oracle Red Bull Racing launched an on-chain fan interaction project called 'In the Moment' in collaboration with Abstract, targeting Gen Z and younger generations by introducing digital ownership and interaction experiences combined with classic F1 moments. This project aims to transform the audience from passive viewers to active participants, with a multi-year strategic placement that seeks to convert young people's interest into a sense of belonging, and even a "shareholder" mentality, through collectible and interactive means on-chain.

) Core concept: Consumer grade encryption

Luca Netz, co-founder of Abstract, has made it clear that the mission of Abstract is to create "consumer-grade encryption." This means "building a mass adoption pathway for blockchain applications that help billions of people's daily lives and meet their personal needs."

They believe that the best way to attract the first 50 million users to the cryptocurrency world is to focus on scenarios of "non-essential consumption." This means activities that bring enjoyment, evoke emotional resonance, and enhance experiences through cryptocurrency technology.

Abstract Chain is a key transportation platform for this consumer cryptocurrency vision. The unique features of blockchain technology, such as digital ownership, censorship resistance, and borderless payment capabilities, offer an unprecedented user experience in consumer environments such as gaming, social networking, memes, and collectibles. Abstract will maximize this potential through user-centered product design, making the daily lives of millions of users more exciting.

As Michael Lee, co-founder and CEO of Abstract, stated, this generation of users has completely transformed the entertainment, music, and luxury industries. They have changed from publishers to streamers, from viewers to athletes, from companies to creators, and from price tags to cultural value. Abstract's mission is to return "happiness, ownership, and creativity" to the hands of everyone and to enable all to enjoy these.

At the same time, the strategy of "growth based on non-rigid consumption" implies that Abstract may deliberately overlook the technology stack that is valued in some mainstream blockchains such as advanced DeFi modules, DePin### decentralized infrastructure networks(, and RWA) real assets(. Therefore, users should not expect Abstract to increase TVL as quickly as DeFi-centric chains.

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Abstract Chain user-based growth graph

) initial chain performance

In July 2024, Abstract officially took the stage to announce a $11 million funding led by Founders Fund, while simultaneously launching the testnet ###Testnet(. Subsequently, the mainnet officially went live on January 27, 2025, with over 120 applications deployed in the first batch.

As of the end of May 2025, Abstract has already created about 2 million wallets, and the total number of deployed contracts has reached 1.4 million, with the total value guarantee on the chain )TVS( reaching 53.4 million dollars. At the beginning of March, the daily transaction volume temporarily reached 1.5 million, and then stabilized at around 500,000. By May, the cumulative number of on-chain transactions had already reached 60 million.

The platform's 30-day activity is showing strong momentum: the total revenue of the top 5 applications has reached 1.85 million dollars, and the total trading volume of NFTs has exceeded 10.4 million dollars. Abstract Chain has not yet launched a native token. Since zk-rollup technology itself does not require an on-chain token for gas fee payment, future Abstract tokens will need to provide completely new practical value beyond traditional models in their functional design.

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Abstract Chain Indicator

) On-chain indicator comparison

The market strategy of Abstract###GTM( focuses on consumer adoption rather than traditional DeFi metrics like locked value)TVL( or developer ecosystem share. Therefore, the target user group includes NFT collectors, gamers, streamers, and casual users of social platforms.

From February to May 2025, Abstract's TVS)Total Value Secure( grew by 150%, skyrocketing from $20 million to $50 million. The peak of active addresses reached 2 million and then stabilized at around 500,000. During the same period, the cumulative trading volume reached 60 million. Abstract's initial projects focused on two vertical areas, NFTs and gaming, perfectly aligning with its "consumer-oriented" positioning and aiming to capture the on-chain consumption market.

Compared to other chains, Abstract has already achieved growth surpassing the major zk Ethereum scaling network ZKsync Era) in the first three months after its mainnet launch, and its active address count and transaction volume are approaching that of TON. Mature rollups like Base and Arbitrum are being referenced as successful examples of EVM that Abstract is targeting.

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) conclusion

Abstract team is pioneering a "consumer-centric" cryptocurrency ecosystem building model, aiming to propel Web3 into the mainstream. Their vision of "consumer-grade cryptocurrency" has already been validated by the successful expansion of the Pudgy Penguins IP, and is now expanding into a more vibrant and sustainably operated online collective, with Abstract chain as the custodian.

Online destinations( must leverage network effects to succeed, which requires continuous acquisition of new users, engagement of creators, and service provision to developers. Abstract provided a solid foundation for user growth and retention by utilizing the Pudgy fan community and native live streaming platform during its launch phase.

In order to achieve exponential growth in the future, Abstract must discover true "killer applications," and perhaps the first breakthrough will occur in the realms of gaming and pop culture, while simultaneously attracting traffic-oriented creators and global brands to the platform.

At the same time, the field of consumer cryptocurrency is also rapidly gaining momentum. TON and Kaia are supported by social media platforms, Base and BNB are supported by exchanges, and Sonenium is driven by institutions. These competitors are participating in the mainstreaming war in turn. "Cryptocurrency applications in the mainstream market" are still a blue ocean, but these various attempts stimulate each other, promote innovation, and accelerate the mainstreaming process across the industry.