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

Summary

• Abstract Chain will launch in January 2025, as a user-centered blockchain dedicated to promoting the mass adoption of cryptographic technology and building a platform that is easy to access and participate in.
• Abstract Chain offers a good user experience brought by 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 establishing a digital entertainment theme park: owning its own portal platform, integrating live broadcasting and reward systems, and attracting application developers into the ecosystem.
• This live streaming platform has attracted over 10,000 broadcasters, with an average daily user participation time exceeding 7 minutes and a 30-day retention rate of 40%, making the live streaming feature one of its main competitive advantages.
• Abstract Chain has currently achieved large-scale application: approximately 2 million wallet registered 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. It utilizes zero-knowledge proof (zk) technology, aiming to provide 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, ensuring scalability and security for applications targeting end users.

The blockchain ecosystem is highly competitive, but there is still some distance to go before true large-scale mainstream user adoption. Early projects like Arbitrum or Optimism have successfully addressed performance bottlenecks and attracted crypto-native users. However, to achieve what is known as "end-user crypto," a Web3 platform with low barriers to entry and high stickiness still needs to be built.

Early explorations like TON and Kaia attempted to reduce user acquisition costs by integrating Web3 into mainstream social platforms such as Telegram or LINE. This achieved some results, 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: 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 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, integrating live streaming, rewards, collectibles, Spotlight( application recommendations), and other sections to create a sticky user experience. This strategy distinguishes Abstract from other chains and becomes the core engine of its growth.

Abstract Flywheel

The development of new chains usually begins with building a developer ecosystem, gradually increasing the on-chain locked value ( TVL ) through on-chain application development and DeFi protocol introduction. To attract users, projects often encourage 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 has recently gained popularity due to meme coins. These native assets tie users to the chain while encouraging developers to build applications around trends. From a business perspective, this approach is akin to making customers use a specific payment card that can only be spent at certain stores.

Abstract Chain has taken 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 entry, token exchange, etc., to enable access to the ecosystem.
• User Interaction: Enhance user engagement through live broadcasts and the rewards center.
• Project Discovery: Guiding users to explore new content through the Spotlight section

This system enables new users to quickly enter Web3, while existing users are continuously drawn back through new content.

If we use a shopping mall as an analogy, Abstract is like managing a thriving large shopping mall: integrating multiple stores in one place, continuously hosting performances on a central stage, maintaining high foot traffic and activity, and keeping customers coming back for enjoyment.

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

A. User Guide

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

Simple onboarding experience

Abstract Chain is dedicated 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 for transactions. Restoring an account or transferring operations is as intuitive as browsing the web or playing games. Additionally, the chain employs ZK rollup technology, ensuring extremely low gas fees and high parallel processing capability, greatly reducing the cost of on-chain interactions.

Once users create an account, they can immediately use all basic crypto tools through the Portal. The wallet in the upper left corner of the page supports real-time trading functions, providing recharge options including bridging and fiat recharge services, allowing 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 barrier to entry, enabling 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 followers on X(, Twitter), Instagram, and TikTok, with more than 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 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 features has greatly propelled the growth of the Portal—1.61 million wallets were activated within 2 months after the mainnet launch.

Moreover, due to the broad fan base of Pudgy and $PENGU, the user profile of Abstract 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, with the remaining users primarily distributed across Europe and East Asian countries such as ( Germany, the UK, France, Japan, South Korea, Singapore, and Hong Kong ). This user group is very 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'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 more than 7 minutes per day. Among Abstract global wallet ( AGW ) users, 40% returned to make at least one transaction within 30 days of creating their wallet, 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 each month. For Abstract, live streaming is not only a reason for user retention but also enhances platform stickiness and monetization potential. Live streaming has been proven to boost game and merchandise sales, aligning well 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.

As of the end of April 2025, Portal has gathered over 1,000 streamers, with total viewing hours exceeding 500,000. Some top streamers can earn up to 9 ETH in tips for a single live broadcast. 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 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 primary incentive tool to reward participants who meet targeted 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 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 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 will expand to the entire Abstract ecosystem, with the hope of developing 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, and more. 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

The ultimate success of any blockchain depends on whether it can nurture 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), and also supports the migration of existing Ethereum smart contracts, facilitating cross-chain deployment. The platform has launched the "Builder-in-Residence Program"( to provide developers with market support, technical guidance, and a monthly stipend. Developers can earn XP rewards each month based on user engagement, and outstanding projects have the opportunity to receive additional incentives. The live streaming platform also...