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

Summary

• Abstract Chain will be launched in January 2025 as a user-centric blockchain aimed at promoting the mass adoption of cryptocurrency technology and building an accessible and engaging platform.
• Abstract Chain offers a comfortable user experience brought by native account abstraction, leveraging the existing 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: owning its own portal platform, integrating live streaming 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 participation retention rate of 40%. The live streaming feature has become one of the main competitive advantages.
• Abstract Chain has currently achieved large-scale applications: the number of registered wallet users is approximately 2 million, daily active wallets are about 100,000, and the average daily on-chain transactions are around 700,000, reflecting the high activity level of the platform.

Introduction

Abstract Chain was established in March 2024 as an Ethereum-based Layer 2 blockchain, utilizing zero-knowledge proof (zk) technology, dedicated to providing mainstream end users with a seamless and differentiated Web3 experience. The chain employs an account abstraction mechanism that simplifies 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, providing scalability and security guarantees for applications targeting end users.

The competition in the blockchain ecosystem is fierce, but there is still some way to go before true mainstream user adoption at scale. Early projects like Arbitrum or Optimism have successfully addressed performance bottlenecks and attracted crypto-native users. However, to achieve what is referred to as "end-user Crypto," it is necessary to build a Web3 platform with low barriers to entry and 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 achieved some success, but in mature markets like Europe and the United States, this model, which relies on the openness of the Web2 platform ecosystem, remains difficult to implement.

Abstract Chain has chosen a different path: to promote the direct integration of cryptographic technology into applications aimed at end users, allowing users to use it seamlessly.

The Abstract mainnet 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 segments such as live streaming, rewards, collectibles, and Spotlight( app recommendations), creating a sticky user experience. This strategy differentiates Abstract from other chains and serves as the core engine for its growth.

Abstract Flywheel

The development of a new chain typically 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 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 bind users to the chain while incentivizing developers to build applications around trends. In business analogy, this approach is similar to having 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 instead builds the portal platform (Portal) as a dynamic online hub, designed around three main functions:

• Basic services: provide tools such as wallets, fiat entry, token swaps, etc., to enable access to the ecosystem.
• User Interaction: Enhance user engagement through live streaming 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 continue to return due to new content.

Metaphorically likened to a shopping mall, Abstract is similar to running a thriving large shopping center: integrating multiple stores in one place, continuously hosting performances on a central stage, maintaining high traffic and activity, and encouraging customers to return for enjoyment.

The following analysis focuses on three key growth areas: user traffic >> portal acceptance >> application ecosystem drive. Together, these constitute 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. 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 onboarding 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 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 as simple as browsing the web or playing games. In addition, the chain employs ZK rollup technology, ensuring very low gas fees and high parallel 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 features, providing recharge options including bridging and fiat deposit services, enabling quick fund deposits. The trading section of the Portal supports native token swaps without the need to search for third-party services. These integrated features collectively lower the barriers to entry, allowing users to seamlessly access 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 over 500,000 $PENGU token holders, providing a ready 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 use case for $PENGU on Abstract.

The synergy between this IP and platform functionalities has greatly driven the growth of Portal—1.61 million wallets were activated within 2 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-oriented crypto ecosystems like TON and Kaia. Abstract attracts a large number of users from developed markets—17.4% of whom are from the United States, with the remaining users primarily distributed across European and East Asian countries such as Germany, the United Kingdom, France, Japan, South Korea, Singapore, and Hong Kong. This user group is highly valuable for end-user-oriented applications, providing a strong foundation for Abstract to build a high-quality consumer ecosystem.

( B. Portal Platform

The portal platform of Abstract is called "数字主题公园)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 users of the Abstract Global Wallet ( AGW ), 40% revisited at least once for transactions within 30 days after creating their wallets, which is far higher than the industry average retention rate.

Live streaming feature

Live streaming is a media format favored by young people worldwide. Web2 platforms like Twitch attract 240 million unique users globally every 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 "Watch-to-Earn ( Stream-to-Earn )" model launched by Abstract encourages users to participate through rewards, comments, gifts, and more, allowing both streamers and viewers to earn tokens, rewards, or experience points ( XP ). In addition, the "Follow" and "Recommend" features help to 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 receive tips of up to 9 ETH per live broadcast. The top 100 streamers account for a significant portion of the platform's tip revenue, with personal monthly incomes ranging from $4,000 to $5,000, and 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 on-chain ecosystems is still rare. Abstract builds such an infrastructure using the XP and badge system (Badges).

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 activities 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 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 functionalities limited to within the Portal. However, in the future, the XP and badge system is expected to expand to the entire Abstract ecosystem, developing into a loyalty and reputation framework that covers the whole ecosystem, targeting 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 into 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 whether it can cultivate a rich and diverse application ecosystem. For Abstract, its mission is to attract "interesting" end-user applications from Web3 projects and mainstream enterprises.

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"(, providing developers with market support, technical guidance, and monthly stipends. 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 promotes featured games through embedded links, for applications.