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

Overview

• Abstract Chain will launch in January 2025 as a user-centric blockchain dedicated to promoting the large-scale adoption of cryptographic technology and building an accessible and engaging platform.
• Abstract Chain offers a good 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 revolves around building a digital entertainment theme park: having its own portal platform, integrating live streaming and reward systems, and attracting application developers to join the ecosystem.
• This live streaming platform has attracted over 10,000 broadcasters, with users participating for 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 applications: approximately 2 million registered wallet users, around 100,000 daily active wallets, and about 700,000 on-chain transactions daily, reflecting the platform's high level of activity.

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. This chain adopts an account abstraction mechanism, simplifying wallet setup and on-chain signing processes, thereby lowering the entry barrier. Through zk-rollup technology, Abstract provides 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 distance to 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 "crypto for end users", it is necessary to build a Web3 platform that combines low barriers to entry with high user retention.

Early explorations like TON or Kaia attempted to reduce user acquisition costs by integrating Web3 into mainstream social platforms such as Telegram or LINE. This has been somewhat successful, 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 a different path: promoting the direct embedding of cryptocurrency technology into applications aimed at end users, allowing users to use it directly without being aware of it.

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

The flywheel effect of Abstract

The development of new chains usually starts 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 encouraging developers to build applications around trends. From a business analogy, this approach is like getting customers to use a specific payment card that can only be spent in certain stores.

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

• Basic Services: Provides tools such as wallets, fiat entry, and token swaps, offering access to the ecosystem.
• User Interaction: Enhance user engagement through live streaming and the rewards center.
• Project Discovery: Guide users to explore new content through the Spotlight section.

This system enables new users to quickly enter Web3, while existing users keep returning due to new content.

If we compare it to a shopping mall, Abstract is similar to managing a prosperous 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 returning and enjoying it.

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

A. User Guidance

The initial user base of Abstract largely relies on its association with the Pudgy Penguins IP, as well as 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 entry 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 activate wallets 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 are as intuitive as browsing the web or playing games. Additionally, the chain employs ZK rollup technology, ensuring extremely low gas fees and high concurrency 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, providing recharge 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 usage threshold, allowing users to access the on-chain world seamlessly.

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(, Twitter), Instagram, and TikTok, and more than 500,000 $PENGU token holders, providing a ready-made user pool for the Abstract chain.

In the Abstract Portal, the image of Pudgy Penguins is as ubiquitous as Mickey Mouse in Disneyland: appearing in 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 driven 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, Abstract's user profile 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, with the remaining users primarily 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 end-user applications, providing 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 is performing exceptionally well. 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 more than 7 minutes per day. Among users of Abstract Global Wallet ( AGW ), 40% returned at least once to make a transaction within 30 days of creating their wallet, a retention rate significantly higher than the industry average.

Live streaming feature

Live streaming is a medium favored by young people around the world. 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 drive game and merchandise sales, aligning closely 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 more, 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 visits 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 from $4,000 to $5,000 and 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 on-chain ecosystems 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 through actions such as connecting 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 application based on behavior and task levels, becoming 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 to the entire Abstract ecosystem, evolving into a loyalty and reputation framework that covers the whole ecosystem, aimed at both developers and users.

Application Discovery

Portal also serves as the "app store" for the Abstract ecosystem. The "Discover" section showcases excellent 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 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