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 aimed at promoting the widespread adoption of cryptographic technology and building an accessible and engaging platform.
• Abstract Chain offers a comfortable user experience brought by original account abstraction and leverages 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: 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 users participating for an average of more than 7 minutes daily and a 30-day retention rate reaching 40%. The live streaming feature has become one of the main competitive advantages.
• Abstract Chain has currently achieved large-scale application: around 2 million registered wallet users, about 100,000 daily active wallets, and approximately 700,000 on-chain transactions per day, 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. The chain employs an account abstraction mechanism, simplifying wallet setup and on-chain signing processes, thereby lowering the barriers to entry. Through zk-rollup technology, Abstract provides low-cost, high-throughput on-chain transaction capabilities, ensuring scalability and security for applications targeting end users.

The competition in the blockchain ecosystem is fierce, but there is still some distance to go before true large-scale mainstream user adoption. Early projects like Arbitrum or Optimism successfully addressed performance bottlenecks and attracted crypto-native users. However, to achieve what is known as "end-user Crypto", it is necessary to build a Web3 platform with low barriers and high stickiness.

Early explorations like TON or Kaia aimed to reduce user acquisition costs by integrating Web3 into mainstream social platforms like Telegram or LINE. This has achieved some success, but this model, which relies on the openness of Web2 platform ecosystems, remains difficult to implement in mature markets such as Europe and the United States.

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

The mainnet of Abstract will be launched in January 2025, along with the portal platform "Portal" as an entry point to 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 differentiates Abstract from other chains and becomes the core engine of its growth.

The flywheel effect of Abstract

The development of new chains usually begins with the construction of 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 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 swaps, 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 recalled through new content.

If we compare it to a shopping mall, Abstract is like managing a thriving large shopping center: integrating multiple stores in one place, continuously hosting performances on a central stage, maintaining high traffic and activity, and ensuring that customers keep coming back to enjoy.

The following analysis will focus on three key growth areas: user traffic >> portal adoption >> 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, as well as its extremely simple and user-friendly design concept. Fans of Pudgy and $PENGU continue to flow into Abstract, and its smooth onboarding experience demonstrates a significant advantage in converting attention into actual users.

Simple onboarding experience

Abstract Chain is dedicated to eliminating traditional barriers and simplifying the user onboarding process. 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 feel as simple as browsing the web or playing a game. Additionally, the chain employs ZK rollup technology to ensure 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 crypto tools through the Portal. The wallet in the upper left corner of the page supports real-time trading functions and provides recharge options including bridging and fiat deposit services, enabling 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 seamlessly enter the on-chain world.

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(, former Twitter), Instagram, and TikTok, with over 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 on marketing banners, user avatars, live broadcast stickers, and more. For $PENGU holders, the Portal also has practical uses---they can use $PENGU tokens to tip during live broadcasts, which is one of the use cases for $PENGU on Abstract.

The synergy between this IP and platform features has greatly propelled the growth of Portal—after the mainnet launch, 1.61 million wallets were activated within 2 months.

Importantly, 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 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, Hong Kong, etc. ). This user base is highly valuable for end-user-focused applications, providing a strong foundation for Abstract to build a high-quality consumption 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 quite impressive. As of March 2025, Portal has over 600,000 monthly active users (MAU) and 100,000 daily active users (DAU), with users averaging over 7 minutes of daily stay. Among Abstract global wallet (AGW) users, 40% returned at least once for transactions within 30 days of creating their wallets, a retention rate much higher than the industry average.

Live Streaming Feature

Live streaming is a media format 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 promote game and merchandise sales, aligning closely with Abstract's goal of building an entertainment ecosystem.

The "Watch to Earn" ( Stream-to-Earn ) model introduced in the abstract encourages user participation 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 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 more than 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 main incentive tool to reward participants who meet target behaviors. Content creators can earn XP through live interaction, 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 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 throughout the Abstract ecosystem, developing into a loyalty and reputation framework that covers the entire ecosystem, aimed at both 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

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" applications aimed at end users from Web3 projects and mainstream enterprises.

Web3 project

Abstract is fully compatible with EVM( Ethereum Virtual Machine), supports the migration of existing Ethereum smart contracts and facilitates cross-chain deployment. The platform has launched the "Builder-in-Residence Program"(, providing developers with market support, technical guidance, and monthly allowances. 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 to drive traffic to the applications.

Games are an important entry point for bringing Web2 users into the Web3 world. Among the top 10 applications of Abstract, 8 are gaming products. Popular games include "Pudgy World",