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-centric blockchain, dedicated to promoting the widespread adoption of cryptographic technology and building an accessible and engaging platform.
• Abstract Chain offers a seamless user experience with native account abstraction, leveraging the established fan base of Pudgy Penguins and $PENGU, while its unique user composition provides differentiated value.
• Abstract's growth strategy revolves around building a digital entertainment theme park: owning its own portal platform, integrating live streaming and rewards systems, and attracting application developers into the ecosystem.
• The live streaming platform has attracted over 10,000 streamers, with users participating for an average of more than 7 minutes per day, 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: approximately 2 million registered wallet users, about 100,000 daily active wallets, and approximately 700,000 daily on-chain transactions, reflecting the platform's high 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. 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 is able to provide 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 some distance to go before true mass adoption by mainstream users. Early projects like Arbitrum and Optimism have successfully addressed performance bottlenecks, attracting crypto-native users. However, to achieve what is referred to as "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 and Kaia attempted to reduce user acquisition costs by integrating Web3 into mainstream social platforms such as Telegram and LINE. This achieved some success, but this model, which relies on Web2 platforms to open ecosystems, is still difficult to realize in mature markets like Europe and the United States.

Abstract Chain has taken a different path: promoting the direct integration of cryptographic technology into end-user applications, allowing users to use it directly without awareness.

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

The Flywheel Effect of Abstract

The development of a new blockchain typically begins with building a developer ecosystem, gradually increasing the on-chain locked value ( TVL ) by developing applications on the chain and introducing DeFi protocols. 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 encouraging developers to build applications around the trends. Using a business analogy, this approach is like having customers use a specific payment card and being able to spend only in 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., enabling access to the ecosystem.
• User Interaction: Increase user engagement through live broadcasts 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 continuously revisit due to new content.

If compared to a shopping mall, Abstract is like managing a prosperous 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 will focus on three key growth areas: user traffic >> portal engagement >> application ecosystem drive. Together, these form the core components of the Abstract platform's business flywheel.

A. User Guidance

The early user base of Abstract largely relies on its association with the Pudgy Penguins IP and 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.

Easy 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 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 are as intuitive as browsing the web or playing games. Additionally, the chain utilizes ZK rollup technology, ensuring extremely low gas fees and high parallel processing capabilities, significantly 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 supports real-time trading features and offers 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 entry barriers, allowing users to access the on-chain world without obstacles.

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 followers on X(, Twitter), Instagram, and TikTok, and has over 500,000 $PENGU token holders, providing a ready user base 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 platform functions greatly promoted the growth of Portal, activating 1.61 million wallets within two months after the mainnet launch.

Moreover, due to the wide distribution of Pudgy and $PENGU fans, the user profile of Abstract 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 whom are from the United States, with the remaining users primarily located in European and East Asian countries such as ( Germany, the UK, France, Japan, South Korea, Singapore, and Hong Kong, among others ). 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'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 an average user stay time of over 7 minutes per day. Among users of the Abstract Global Wallet ( AGW ), 40% revisited at least once for transactions within 30 days of wallet creation, which far exceeds the industry average retention rate.

Live Streaming Function

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 return visits, but also enhances platform stickiness and monetization potential. Live streaming has been proven to promote game and merchandise sales, which aligns closely with Abstract's goal of building an entertainment ecosystem.

The "Stream-to-Earn" model launched by Abstract encourages users to participate through rewards, comments, gifts, and other means, 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 continuous user engagement 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 in a single 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 having more than 4,000 interactive users.

Reward and Reputation System

Many crypto projects encourage early user participation through a points mechanism, 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 ordinary 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. Depending on the level of behavior and tasks, different types of badges will be minted as on-chain NFTs or displayed within the application, 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 to the entire Abstract ecosystem, evolving into a loyalty and reputation framework that covers the entire ecosystem and is aimed at developers and users.

Application Discovery

Portal also serves as the "app store" for the Abstract ecosystem. The "Discover" section showcases outstanding 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 the cumbersome registration process.

( C. Application Ecosystem

The ultimate success of any blockchain depends on its 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###, supporting existing Ethereum.