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Abstract Chain was established in March 2024. It is an Ethereum-based Layer 2 blockchain that utilizes zero-knowledge encryption (zk) technology. The primary goal of this blockchain is to offer a seamless and differentiated Web3 experience for mainstream consumers. By adopting an account abstraction mechanism, the chain simplifies wallet setup and on-chain signing processes, thereby lowering the barrier to entry. Through zk-rollup technology, Abstract provides low-cost, high-throughput on-chain transaction capabilities, bringing scalability and security assurance to consumer applications.
Launched in January 2025, Abstract Chain is a consumer-centric blockchain dedicated to popularizing cryptocurrency and creating an easily accessible and engaging platform. It offers a smooth user experience thanks to its native account abstraction and leverages the established fan bases of Pudgy Penguins and PENGU to provide unique value through its distinctive user structure. Abstract's growth strategy revolves around building a digital entertainment theme park: it has its own portal platform integrating live streaming and reward systems, and it attracts application developers to join its ecosystem. By the end of May this year, the live streaming platform had attracted over 10,000 streamers, with an average user engagement time of over 7 minutes per day and a 30-day retention rate of 40%. The live streaming function has become one of the main competitive advantages. Abstract Chain has now achieved large-scale application: with nearly 2 million wallet registrations, around 100,000 active wallets per day, and approximately 700,000 on-chain transactions daily, reflecting extremely high platform activity.
Introduction
Abstract Chain was established in March 2024. It is an Ethereum-based Layer 2 blockchain that utilizes zero-knowledge encryption (zk) technology. The primary goal of this blockchain is to offer a seamless and differentiated Web3 experience for mainstream consumers. By adopting an account abstraction mechanism, the chain simplifies wallet setup and on-chain signing processes, thereby lowering the barrier to entry. Through zk-rollup technology, Abstract provides low-cost, high-throughput on-chain transaction capabilities, bringing scalability and security assurance to consumer applications.
Despite the fierce competition in the blockchain ecosystem, there is still a long way to go before true large-scale mainstream user adoption. Early projects like Arbitrum and Optimism successfully solved performance bottlenecks and attracted crypto-native users. However, to achieve so-called "consumer-grade Crypto," it is necessary to create a Web3 platform that is both low-threshold and highly sticky.
Early explorations such as TON and Kaia attempted to integrate Web3 into mainstream social platforms like Telegram and LINE to reduce user acquisition costs. Although they achieved some success, this model, which relies on the openness of Web2 platform ecosystems, is still difficult to implement in mature markets such as Europe and America.
Abstract Chain has chosen a different path: by embedding cryptographic technology directly into consumer applications, it promotes seamless and direct use by end-users. Abstract's mainnet was launched in January 2025, along with its portal platform, Portal, which serves as the entry point for its gaming and application ecosystem. Portal is not only a content display window but also a highly interactive online destination, integrating live streaming, rewards, collectibles, and Spotlight (application recommendations) to create a sticky user experience. This strategy distinguishes Abstract from other chains and serves as the core engine of its growth.
Abstract Chain: A Comprehensive Analysis - How to Bring Public Chain Ecosystems to Mainstream Users?
Abstract's Business Flywheel
The development of a new blockchain typically begins with establishing a developer ecosystem. By developing on-chain applications and introducing DeFi protocols, the on-chain total value locked (TVL) is gradually increased. To attract users, projects often incentivize participation through airdrops and other means.
The network effects of these models mainly depend on the assets held by users on the chain. For example, Ethereum's early NFT boom and Solana's recent meme coin craze have driven user engagement. These native assets bind users to the chain and drive developers to build applications around trends. To use a merchant analogy, this approach is similar to attracting customers to use a specific payment card that can only be used in certain stores.
Abstract Chain, however, has taken a different path. Instead of focusing on asset accumulation, it has designed its portal platform (Portal) as a dynamic online hub centered around three main functions:
Basic services: Tools such as wallets, fiat entry points, and token exchanges provide the ability to enter the ecosystem.
User interaction: Live streaming and reward centers enhance user stickiness.
Project discovery: The Spotlight section guides users to explore new content.
This system ensures that new users can quickly access Web3, while existing users are continually drawn back by new content.
Using a shopping mall analogy, Abstract is more like operating a thriving large shopping center: integrating multiple shops in one place and continuously holding performances on the central stage to maintain high traffic and activity, encouraging customers to keep returning and enjoy the experience.
The following analysis will focus on three key growth areas: user inflow >> portal承接 >> application ecosystem drive. Together, they form the core components of Abstract's business flywheel.
Abstract Chain: A Comprehensive Analysis - How to Bring Public Chain Ecosystems to Mainstream Users?
A. User Onboarding
A significant portion of Abstract's initial user base can be attributed to its association with the Pudgy Penguins IP, complemented by its extremely user-friendly design philosophy. Although fans of Pudgy and PENGU continue to flock to Abstract, its smooth onboarding experience gives this chain a significant advantage in converting attention into real users.
Simplified Onboarding Experience
Abstract Chain is committed to simplifying the user onboarding process by eliminating traditional barriers. Its native account abstraction feature allows users to create an Abstract account and activate a wallet as easily as signing up 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 web pages or playing games. Moreover, the chain's use of zero-knowledge rollup technology ensures extremely low gas fees and high concurrency capabilities, significantly reducing the cost of on-chain interactions.
Once users create an account, they can immediately access all basic crypto tools through Portal. The wallet located at the top left of the page supports real-time trading functions and offers top-up options, including bridging and fiat funding services, facilitating quick fund deposits. Portal's trading section supports native coin exchange without the need to search for third-party services. These integrated functions collectively lower the barrier to use, enabling users to seamlessly access the on-chain world.
Pudgy Fans as Early User Base
Abstract leverages the large and active fan community of Pudgy Penguins. Pudgy Penguins has over 3 million followers on X (formerly Twitter), Instagram, and TikTok, and more than 500,000 PENGU holders, providing Abstract with a ready-made user pool. In Abstract's Portal, the image of Pudgy Penguins is ubiquitous, much like Mickey Mouse in Disneyland: it appears in marketing banners, user avatars, and live streaming stickers. For PENGU holders, Portal also has practical uses—they can use PENGU Tokens to tip live streams, which is one of the ways to use PENGU on Abstract.
This synergy between the IP and platform functions has greatly promoted Portal's growth—within two months of the mainnet launch, it attracted 1.61 million wallet activations. More importantly, due to the wide distribution of Pudgy and PENGU fans, Abstract's user profile is different from other consumer-grade crypto ecosystems such as TON and Kaia. Abstract has attracted a large number of users from developed markets—17.4% from the United States, with the rest mainly distributed in European and East Asian countries, including Germany, the United Kingdom, France, Japan, South Korea, Singapore, and Hong Kong. This user group is highly valuable for consumer applications and provides a strong foundation for Abstract to build a high-quality consumer ecosystem.
Abstract Chain: A Comprehensive Analysis - How to Bring Public Chain Ecosystems to Mainstream Users?
Source: Abstract Official
B. Portal Platform
Abstract's portal platform is known as the "Digital Theme Park of Fun." It 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 indicates that Portal has performed remarkably well. As of March 2025, Portal had over 600,000 monthly active users (MAU) and 100,000 daily active users (DAU), with an average user stay time of over 7 minutes per day. Among Abstract's Global Wallet (AGW) users, 40% still return to conduct at least one transaction within 30 days of creating their wallet, a retention rate that far exceeds the industry average.
Live Streaming Functionality
Live streaming is a medium beloved by young people worldwide. Web2 platforms like Twitch can attract 240 million unique users per month from all over the globe. For Abstract, live streaming is not only a reason for users to revisit but also enhances platform stickiness and monetization potential. Live streaming has been proven to boost game and merchandise sales, which aligns highly with Abstract's goal of creating an entertainment ecosystem.
"Watch-to-Earn" Model
Abstract's "Watch-to-Earn" model encourages user interaction, including tipping, commenting, and gifting, allowing both streamers and viewers to earn tokens, rewards, or experience points (XP). Additionally, the "follow" and "recommend" functions help build a community atmosphere, driving continuous user visits and social sharing.
By the end of April 2025, Portal had accumulated over a thousand streamers, with a total live viewing time exceeding 500,000 hours. Some top streamers even received tips as high as 9 ETH in a single instance. The top 100 streamers account for a significant share of the platform's tipping revenue, with individual monthly incomes ranging from $4,000 to $5,000 and over 4,000 interactive users.
Rewards and Reputation System
Many crypto projects incentivize early user participation through point mechanisms, but a truly robust loyalty and reputation system is still rare in the on-chain ecosystem. Abstract has built such an infrastructure using XP and a badge system.
Abstract uses off-chain XP as the main incentive tool to encourage participants who exhibit 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 by linking social accounts or using referral applications.
At the same time, the badge function allows users to showcase their achievements. Depending on the behavior and task level, different types of badges are minted 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 early stages, with functions limited to within Portal. However, in the future, the XP and badge system is expected to expand across the entire Abstract ecosystem, developing into a loyalty and reputation framework that covers the entire ecosystem and serves both developers and users.
Application Discovery
Portal also acts as the "app store" of the Abstract ecosystem. The "Discovery" section showcases high-quality applications voted on by users and categorizes them into sections, including: digital collectibles, games, NFTs, social, AI, trading, and prediction markets. Users can log in to these applications directly with their Abstract ID and start experiencing them immediately, without the need for cumbersome registration processes.
C. Application Ecosystem
For any blockchain, ultimate success depends on its ability to cultivate a rich and diverse application ecosystem. For Abstract, its mission is to attract consumer "fun" applications from Web3 projects and mainstream institutions.
Web3 Projects
Abstract is fully compatible with the Ethereum Virtual Machine (EVM), supporting the migration of existing Ethereum smart contracts and facilitating cross-chain deployment. The platform launched a "Builder-in-Residence Program," offering developers market support, technical guidance, and monthly stipends. Developers can earn monthly XP rewards based on user engagement, and outstanding projects have the opportunity to receive additional incentives. The live streaming platform will also promote featured games through embedded links, driving traffic to applications.
Games are an important entry point for attracting Web2 users into the Web3 world. Among Abstract's top ten popular applications, eight are game-related. Popular games include Pudgy World, Bigcoin, BTC Mining Game, adventure titles like Onchain Heroes and LOL Land, YGG's Pudgy IP game, and community projects like Gigaverse.
By partnering with NFT platforms such as Magic Eden and OpenSea, Abstract has enabled the buying and trading of game assets, further enriching the gaming ecosystem. Currently, over 120 projects have been deployed on Abstract, including social applications like Gacha, trading platforms like BuzzFun and Myriad, and games such as Gigaverse, Onchain Heroes, and Multiplier.
Abstract's strong user base allows new projects to quickly gain attention. For example, Duper and Witty attracted 50,000 users within just a few days of launch; the prediction market Myriad attracted nearly 500,000 users within two months of launch. These successful cases have greatly boosted developer confidence and encouraged more teams to invest in building.
Mainstream Institutions
Abstract is actively collaborating with consumer-facing institutions, such as music and sports brands, to migrate their Web3 products onto the chain. For example, digital collectibles like NBA Top Shots will be issued as NFTs, allowing fans to buy, hold, and trade. These sports and music enthusiasts perfectly align with Abstract's consumer positioning.
For institutions seeking on-chain partners, Abstract has natural advantages—Ethereum-level security, user-friendly interfaces, and low-threshold access are all its core selling points. Although specific collaborations have not yet been officially announced, once they are launched, they are expected to bring a large number of mainstream Web3 users to Abstract, allowing them to truly immerse themselves in the on-chain experience.
Recently, Oracle Red Bull Racing launched an on-chain fan engagement project called In the Moment on Abstract, targeting the Z and Alpha generations of young people. Combining classic F1 moments with digital ownership and interactive experiences, the project transforms viewers from passive watchers to active participants. This multi-year strategic deployment aims to attract young people to turn their interests into a sense of belonging or even a "shareholder" mentality through collectibl
Abstract Chain was established in March 2024. It is an Ethereum-based Layer 2 blockchain that utilizes zero-knowledge encryption (zk) technology. The primary goal of this blockchain is to offer a seamless and differentiated Web3 experience for mainstream consumers. By adopting an account abstraction mechanism, the chain simplifies wallet setup and on-chain signing processes, thereby lowering the barrier to entry. Through zk-rollup technology, Abstract provides low-cost, high-throughput on-chain transaction capabilities, bringing scalability and security assurance to consumer applications.
Launched in January 2025, Abstract Chain is a consumer-centric blockchain dedicated to popularizing cryptocurrency and creating an easily accessible and engaging platform. It offers a smooth user experience thanks to its native account abstraction and leverages the established fan bases of Pudgy Penguins and PENGU to provide unique value through its distinctive user structure. Abstract's growth strategy revolves around building a digital entertainment theme park: it has its own portal platform integrating live streaming and reward systems, and it attracts application developers to join its ecosystem. By the end of May this year, the live streaming platform had attracted over 10,000 streamers, with an average user engagement time of over 7 minutes per day and a 30-day retention rate of 40%. The live streaming function has become one of the main competitive advantages. Abstract Chain has now achieved large-scale application: with nearly 2 million wallet registrations, around 100,000 active wallets per day, and approximately 700,000 on-chain transactions daily, reflecting extremely high platform activity.
Introduction
Abstract Chain was established in March 2024. It is an Ethereum-based Layer 2 blockchain that utilizes zero-knowledge encryption (zk) technology. The primary goal of this blockchain is to offer a seamless and differentiated Web3 experience for mainstream consumers. By adopting an account abstraction mechanism, the chain simplifies wallet setup and on-chain signing processes, thereby lowering the barrier to entry. Through zk-rollup technology, Abstract provides low-cost, high-throughput on-chain transaction capabilities, bringing scalability and security assurance to consumer applications.
Despite the fierce competition in the blockchain ecosystem, there is still a long way to go before true large-scale mainstream user adoption. Early projects like Arbitrum and Optimism successfully solved performance bottlenecks and attracted crypto-native users. However, to achieve so-called "consumer-grade Crypto," it is necessary to create a Web3 platform that is both low-threshold and highly sticky.
Early explorations such as TON and Kaia attempted to integrate Web3 into mainstream social platforms like Telegram and LINE to reduce user acquisition costs. Although they achieved some success, this model, which relies on the openness of Web2 platform ecosystems, is still difficult to implement in mature markets such as Europe and America.
Abstract Chain has chosen a different path: by embedding cryptographic technology directly into consumer applications, it promotes seamless and direct use by end-users. Abstract's mainnet was launched in January 2025, along with its portal platform, Portal, which serves as the entry point for its gaming and application ecosystem. Portal is not only a content display window but also a highly interactive online destination, integrating live streaming, rewards, collectibles, and Spotlight (application recommendations) to create a sticky user experience. This strategy distinguishes Abstract from other chains and serves as the core engine of its growth.
Abstract Chain: A Comprehensive Analysis - How to Bring Public Chain Ecosystems to Mainstream Users?
Abstract's Business Flywheel
The development of a new blockchain typically begins with establishing a developer ecosystem. By developing on-chain applications and introducing DeFi protocols, the on-chain total value locked (TVL) is gradually increased. To attract users, projects often incentivize participation through airdrops and other means.
The network effects of these models mainly depend on the assets held by users on the chain. For example, Ethereum's early NFT boom and Solana's recent meme coin craze have driven user engagement. These native assets bind users to the chain and drive developers to build applications around trends. To use a merchant analogy, this approach is similar to attracting customers to use a specific payment card that can only be used in certain stores.
Abstract Chain, however, has taken a different path. Instead of focusing on asset accumulation, it has designed its portal platform (Portal) as a dynamic online hub centered around three main functions:
Basic services: Tools such as wallets, fiat entry points, and token exchanges provide the ability to enter the ecosystem.
User interaction: Live streaming and reward centers enhance user stickiness.
Project discovery: The Spotlight section guides users to explore new content.
This system ensures that new users can quickly access Web3, while existing users are continually drawn back by new content.
Using a shopping mall analogy, Abstract is more like operating a thriving large shopping center: integrating multiple shops in one place and continuously holding performances on the central stage to maintain high traffic and activity, encouraging customers to keep returning and enjoy the experience.
The following analysis will focus on three key growth areas: user inflow >> portal承接 >> application ecosystem drive. Together, they form the core components of Abstract's business flywheel.
Abstract Chain: A Comprehensive Analysis - How to Bring Public Chain Ecosystems to Mainstream Users?
A. User Onboarding
A significant portion of Abstract's initial user base can be attributed to its association with the Pudgy Penguins IP, complemented by its extremely user-friendly design philosophy. Although fans of Pudgy and PENGU continue to flock to Abstract, its smooth onboarding experience gives this chain a significant advantage in converting attention into real users.
Simplified Onboarding Experience
Abstract Chain is committed to simplifying the user onboarding process by eliminating traditional barriers. Its native account abstraction feature allows users to create an Abstract account and activate a wallet as easily as signing up 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 web pages or playing games. Moreover, the chain's use of zero-knowledge rollup technology ensures extremely low gas fees and high concurrency capabilities, significantly reducing the cost of on-chain interactions.
Once users create an account, they can immediately access all basic crypto tools through Portal. The wallet located at the top left of the page supports real-time trading functions and offers top-up options, including bridging and fiat funding services, facilitating quick fund deposits. Portal's trading section supports native coin exchange without the need to search for third-party services. These integrated functions collectively lower the barrier to use, enabling users to seamlessly access the on-chain world.
Pudgy Fans as Early User Base
Abstract leverages the large and active fan community of Pudgy Penguins. Pudgy Penguins has over 3 million followers on X (formerly Twitter), Instagram, and TikTok, and more than 500,000 PENGU holders, providing Abstract with a ready-made user pool. In Abstract's Portal, the image of Pudgy Penguins is ubiquitous, much like Mickey Mouse in Disneyland: it appears in marketing banners, user avatars, and live streaming stickers. For PENGU holders, Portal also has practical uses—they can use PENGU Tokens to tip live streams, which is one of the ways to use PENGU on Abstract.
This synergy between the IP and platform functions has greatly promoted Portal's growth—within two months of the mainnet launch, it attracted 1.61 million wallet activations. More importantly, due to the wide distribution of Pudgy and PENGU fans, Abstract's user profile is different from other consumer-grade crypto ecosystems such as TON and Kaia. Abstract has attracted a large number of users from developed markets—17.4% from the United States, with the rest mainly distributed in European and East Asian countries, including Germany, the United Kingdom, France, Japan, South Korea, Singapore, and Hong Kong. This user group is highly valuable for consumer applications and provides a strong foundation for Abstract to build a high-quality consumer ecosystem.
Abstract Chain: A Comprehensive Analysis - How to Bring Public Chain Ecosystems to Mainstream Users?
Source: Abstract Official
B. Portal Platform
Abstract's portal platform is known as the "Digital Theme Park of Fun." It 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 indicates that Portal has performed remarkably well. As of March 2025, Portal had over 600,000 monthly active users (MAU) and 100,000 daily active users (DAU), with an average user stay time of over 7 minutes per day. Among Abstract's Global Wallet (AGW) users, 40% still return to conduct at least one transaction within 30 days of creating their wallet, a retention rate that far exceeds the industry average.
Live Streaming Functionality
Live streaming is a medium beloved by young people worldwide. Web2 platforms like Twitch can attract 240 million unique users per month from all over the globe. For Abstract, live streaming is not only a reason for users to revisit but also enhances platform stickiness and monetization potential. Live streaming has been proven to boost game and merchandise sales, which aligns highly with Abstract's goal of creating an entertainment ecosystem.
"Watch-to-Earn" Model
Abstract's "Watch-to-Earn" model encourages user interaction, including tipping, commenting, and gifting, allowing both streamers and viewers to earn tokens, rewards, or experience points (XP). Additionally, the "follow" and "recommend" functions help build a community atmosphere, driving continuous user visits and social sharing.
By the end of April 2025, Portal had accumulated over a thousand streamers, with a total live viewing time exceeding 500,000 hours. Some top streamers even received tips as high as 9 ETH in a single instance. The top 100 streamers account for a significant share of the platform's tipping revenue, with individual monthly incomes ranging from $4,000 to $5,000 and over 4,000 interactive users.
Rewards and Reputation System
Many crypto projects incentivize early user participation through point mechanisms, but a truly robust loyalty and reputation system is still rare in the on-chain ecosystem. Abstract has built such an infrastructure using XP and a badge system.
Abstract uses off-chain XP as the main incentive tool to encourage participants who exhibit 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 by linking social accounts or using referral applications.
At the same time, the badge function allows users to showcase their achievements. Depending on the behavior and task level, different types of badges are minted 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 early stages, with functions limited to within Portal. However, in the future, the XP and badge system is expected to expand across the entire Abstract ecosystem, developing into a loyalty and reputation framework that covers the entire ecosystem and serves both developers and users.
Application Discovery
Portal also acts as the "app store" of the Abstract ecosystem. The "Discovery" section showcases high-quality applications voted on by users and categorizes them into sections, including: digital collectibles, games, NFTs, social, AI, trading, and prediction markets. Users can log in to these applications directly with their Abstract ID and start experiencing them immediately, without the need for cumbersome registration processes.
C. Application Ecosystem
For any blockchain, ultimate success depends on its ability to cultivate a rich and diverse application ecosystem. For Abstract, its mission is to attract consumer "fun" applications from Web3 projects and mainstream institutions.
Web3 Projects
Abstract is fully compatible with the Ethereum Virtual Machine (EVM), supporting the migration of existing Ethereum smart contracts and facilitating cross-chain deployment. The platform launched a "Builder-in-Residence Program," offering developers market support, technical guidance, and monthly stipends. Developers can earn monthly XP rewards based on user engagement, and outstanding projects have the opportunity to receive additional incentives. The live streaming platform will also promote featured games through embedded links, driving traffic to applications.
Games are an important entry point for attracting Web2 users into the Web3 world. Among Abstract's top ten popular applications, eight are game-related. Popular games include Pudgy World, Bigcoin, BTC Mining Game, adventure titles like Onchain Heroes and LOL Land, YGG's Pudgy IP game, and community projects like Gigaverse.
By partnering with NFT platforms such as Magic Eden and OpenSea, Abstract has enabled the buying and trading of game assets, further enriching the gaming ecosystem. Currently, over 120 projects have been deployed on Abstract, including social applications like Gacha, trading platforms like BuzzFun and Myriad, and games such as Gigaverse, Onchain Heroes, and Multiplier.
Abstract's strong user base allows new projects to quickly gain attention. For example, Duper and Witty attracted 50,000 users within just a few days of launch; the prediction market Myriad attracted nearly 500,000 users within two months of launch. These successful cases have greatly boosted developer confidence and encouraged more teams to invest in building.
Mainstream Institutions
Abstract is actively collaborating with consumer-facing institutions, such as music and sports brands, to migrate their Web3 products onto the chain. For example, digital collectibles like NBA Top Shots will be issued as NFTs, allowing fans to buy, hold, and trade. These sports and music enthusiasts perfectly align with Abstract's consumer positioning.
For institutions seeking on-chain partners, Abstract has natural advantages—Ethereum-level security, user-friendly interfaces, and low-threshold access are all its core selling points. Although specific collaborations have not yet been officially announced, once they are launched, they are expected to bring a large number of mainstream Web3 users to Abstract, allowing them to truly immerse themselves in the on-chain experience.
Recently, Oracle Red Bull Racing launched an on-chain fan engagement project called In the Moment on Abstract, targeting the Z and Alpha generations of young people. Combining classic F1 moments with digital ownership and interactive experiences, the project transforms viewers from passive watchers to active participants. This multi-year strategic deployment aims to attract young people to turn their interests into a sense of belonging or even a "shareholder" mentality through collectibl
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