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

Summary

• Abstract Chain will be launched in January 2025, positioned as a user-centric blockchain, dedicated to promoting the large-scale application of cryptographic technology and building a platform that is easily accessible and engaging.
• Abstract Chain offers a comfortable user experience brought by native account abstraction and fully leverages the advantages of the established Pudgy Penguins and $PENGU fan base, providing differentiated value through its unique user structure.
• Abstract's growth strategy revolves around building a digital entertainment theme park: featuring a unique portal platform, integrating live streaming and reward systems, attracting application developers into the ecosystem.
• This live streaming platform has attracted over 10,000 broadcasters, with users spending an average of over 7 minutes daily, 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, daily active wallets are about 100,000, and there are about 700,000 on-chain transactions per day, reflecting the high activity level of the platform.

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 seamless and differentiated Web3 experiences for mainstream end users. This chain employs an account abstraction mechanism, simplifying wallet setup and on-chain signing processes, thus 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 a way to go before truly achieving large-scale mainstream user adoption. Early projects like Arbitrum and Optimism have successfully addressed performance bottlenecks and attracted crypto-native users. However, to realize the so-called "end-user Crypto", it is necessary to build a Web3 platform that has both low barriers to entry and high user retention.

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 results, but in mature markets like Europe and the United States, this model that relies on the open ecosystem of Web2 platforms is still difficult to realize.

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 go live in January 2025, along with the launch of "Portal," a gateway platform serving as an entry point for games and application ecosystems. Portal is not only a window for content display but also 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 becomes the core engine for its growth.

Abstract's flywheel

The development of new chains typically starts with building a developer ecosystem, gradually increasing the on-chain locked value ( TVL ) through on-chain application development and DeFi protocol deployment. To attract users, projects often encourage participation through methods such as 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 chain while also encouraging developers to build applications around trends. From a business analogy, this approach is similar to making customers use a specific payment card and only being able to spend in certain stores.

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

• Basic services: Provide tools such as wallets, fiat gateways, token swaps, etc., to enable access to the ecosystem.
• User Interaction: Enhance user engagement through live streaming and reward 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 are continuously recalled through new content.

If we compare it to a shopping mall, the operation of Abstract is similar to a thriving large shopping center: integrating multiple stores in one place while continuously hosting performances on a central stage, maintaining high traffic and activity, encouraging customers to keep coming back for enjoyment.

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

A. User Guidance

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

Simple Getting Started Experience

Abstract Chain is committed to eliminating traditional barriers and simplifying the user onboarding process. Its native account abstraction feature allows users to easily create an Abstract account and enable a wallet 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 just like browsing the web or playing games. In addition, the chain uses ZK rollup technology to ensure very low gas fees and high concurrent processing capacity, 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 top 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 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 owned by Pudgy Penguins. Pudgy Penguins has over 3 million fans on X( original Twitter), Instagram, and TikTok, and boasts over 500,000 $PENGU token holders, providing a ready-made user pool for the Abstract chain.

In Abstract's Portal, the image of Pudgy Penguins is as ubiquitous as Mickey Mouse at 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 platform functions has greatly promoted the growth of Portal---161,000 wallets were activated within two months after the mainnet launch.

Moreover, due to the widespread distribution of Pudgy and $PENGU fans, the user profile of Abstract is also different from other end-user oriented crypto ecosystems like TON and Kaia. Abstract attracts many users from developed markets—17.4% of whom are from the United States, with the remaining users mainly distributed across European and East Asian countries such as Germany, the UK, France, Japan, South Korea, Singapore, Hong Kong, etc. This user group is very valuable for end-user oriented 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 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 Abstract Global Wallet ) AGW ( users, 40% return to make at least one transaction within 30 days of wallet creation, a retention rate that is significantly higher than the industry average.

Live streaming feature

Live streaming is a media format favored by young people worldwide. Web2 platforms like Twitch attract 240 million unique users globally 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, 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 broadcasters, with a total viewing time exceeding 500,000 hours. Some top broadcasters can receive up to 9 ETH in tips for a single live broadcast. The top 100 broadcasters account for a significant portion of the platform's tip revenue, with individual monthly incomes ranging from $4,000 to $5,000, and having more than 4,000 interactive users.

Reward and Reputation System

Many crypto projects encourage early user participation through point mechanisms, 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 engagement tasks, and regular users can earn XP through actions such as linking social accounts and using recommended applications.

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 the level of behavior and tasks, becoming part of the user's identity and gradually forming a complete reputation system.

Currently, the 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, aimed at developers and users.

Application Discovery

Portal also serves as the "app store" of the Abstract ecosystem. The "Discover" section showcases excellent applications voted by users, with categories including: 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 without the 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 EVM) Ethereum Virtual Machine( and also supports the migration of existing Ethereum smart contracts, facilitating cross-chain deployment. The platform has launched the "Builder-in-Residence Program"), which provides 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 featured games through embedded links to drive traffic to the application.

Games are an important entry point for bringing Web2 users into the Web3 world. Among the top 10 applications in Abstract, 8 are gaming products. Popular games include "Pudgy World", "Bigcoin", "BTC Mining Game", adventure titles like "Onchain Heroes" and "LOL Land", as well as YGG.