Abstract Chain Panorama Analysis: How to Build a People-Friendly Public Chain Ecosystem?

Summary

• Abstract Chain is a consumer-centric blockchain launched in January 2025, dedicated to promoting the mainstream adoption of cryptocurrency technology and creating a platform that is easy to access and participate in.
• Abstract Chain provides a seamless user experience through native account abstraction and leverages the established Pudgy Penguins and PENGU fan communities to offer differentiated value through a unique user composition.
• 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 into the ecosystem.
• This live streaming platform has attracted over 10,000 broadcasters, with an average user engagement time of more than 7 minutes per day and a 30-day retention rate of 40%. The live streaming feature has become one of its main competitive advantages.
• Abstract Chain has currently achieved large-scale application: the number of registered wallet users is about 2 million, daily active wallets are about 100,000, and the average daily on-chain transactions are about 700,000, reflecting the platform's high activity.

Introduction

Abstract Chain is an Ethereum-based Layer 2 blockchain established in March 2024, utilizing zero-knowledge encryption ( zk ) technology, dedicated to providing mainstream consumers 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 offer low-cost, high-throughput on-chain transaction capabilities, ensuring scalability and security for consumer applications.

Despite the fierce competition in the blockchain ecosystem, there is still some distance to achieving large-scale mainstream user adoption. Early projects like Arbitrum and Optimism have successfully addressed performance bottlenecks and attracted crypto-native users. However, to achieve what is known as "consumer-grade cryptocurrency," it is necessary to build a Web3 platform with a low entry barrier and high stickiness.

Early explorations like TON and Kaia attempted to reduce user acquisition costs by integrating Web3 into mainstream social platforms like Telegram and LINE. Although some results were achieved, this model that relies on the openness of Web2 platform ecosystems is still difficult to realize in mature markets such as Europe and America.

Abstract Chain has chosen a different path: embedding cryptographic technology directly into consumer applications, encouraging users to use it directly without their awareness.

The mainnet of Abstract will go live in January 2025, along with the launch of Portal, a gateway platform serving as an entry point for games and application ecosystems. Portal is not only a content showcase but also a highly interactive online destination that integrates live streaming, rewards, collectibles, and Spotlight( app recommendations), creating a sticky user experience. This strategy differentiates Abstract from other chains and positions it as a core engine for growth.

The business flywheel of Abstract

The development of a new blockchain usually starts with building a developer ecosystem, gradually increasing the on-chain locked value ( TVL ) by developing on-chain applications and introducing DeFi protocols. To attract users, projects incentivize participation through airdrops and other methods.

The network effects of this model primarily rely on the on-chain assets held by users. For example, Ethereum was initially dominated by the NFT craze, while Solana has recently gained popularity due to meme coins. These native assets bind users to the blockchain while guiding developers to build applications around trends. From a business perspective, this approach is similar to getting customers to use a specific payment card that can only be spent at certain stores.

Abstract Chain has taken a different approach. Instead of focusing on asset accumulation, it has built the portal platform (Portal) as a vibrant online hub, designed around three main functions:

• Basic services: Providing tools such as wallets, fiat entry, token exchanges, etc., empowering the ability to enter the ecosystem.
• User Interaction: Live streaming and rewards center enhance user engagement.
• Project Discovery: The Spotlight section guides users to explore new content.

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

Metaphorically likened to a shopping center, Abstract is similar to managing a thriving large mall: integrating multiple stores in one place, continuously hosting performances on a central stage, maintaining high foot traffic and activity, encouraging customers to keep coming back to enjoy.

The following analysis revolves around three core growth areas: user acquisition >> portal hosting >> application ecosystem drive. Together, they constitute the key 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 philosophy. While fans of Pudgy and PENGU continue to flock to Abstract, its smooth onboarding experience gives this chain a significant advantage in converting interest into actual users.

Simple introductory experience

Abstract Chain is dedicated to simplifying the user onboarding process by eliminating traditional barriers. With the native account abstraction feature, users can 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 and transfer operations are as intuitive as browsing the web or playing games. Additionally, the chain employs zero-knowledge rollup technology, ensuring extremely 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 crypto tools through the Portal. The wallet in the upper left corner supports real-time trading features and offers funding options including bridging and fiat deposit services for quick fund inflows. The trading section of the Portal supports native token exchanges without the need to search for third-party services. These integrated features collectively lower the usage threshold, 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 owned by Pudgy Penguins. Pudgy Penguins has over 3 million fans on X(, Twitter), Instagram, and TikTok, with over 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 everywhere, just like 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 of PENGU on Abstract.

The synergy between this IP and platform functionalities has greatly boosted the growth of Portal—activating 1.61 million wallets within two months after the mainnet launch.

Moreover, due to the widespread fan distribution of Pudgy and PENGU, Abstract's user profile is also different from other consumer-grade crypto ecosystems like TON and Kaia. Abstract has attracted a large number of users in 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 United Kingdom, France, Japan, South Korea, Singapore, and Hong Kong, among others ). This user group is highly valuable for consumer-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 "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. Among users of the Abstract Global Wallet ( AGW ), 40% return 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 return visits but also enhances the platform's stickiness and monetization potential. Live streaming has been proven to boost 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 users to participate through tips, comments, gifts, and other means, allowing both streamers and viewers to obtain tokens, rewards, or experience points ( XP ). Additionally, the "Follow" and "Recommend" features help to build a community atmosphere, promoting continuous 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 have earned as much as 9 ETH in tips during a single live broadcast. The top 100 streamers account for a significant portion of the platform's tip income, with individual monthly earnings ranging from $4,000 to $5,000, and they have 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 scarce. Abstract uses the XP and badge system (Badges) to build this infrastructure.

Abstract uses off-chain XP as the primary incentive tool to encourage 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 linking social accounts or using recommended applications.

At the same time, through the badge feature, users can showcase their achievements. Different types of badges will be issued as on-chain NFTs or displayed within the application based on behavior and task levels, becoming a part of the user's identity and gradually forming a complete reputation system.

The system is currently 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, developing into a comprehensive loyalty and reputation framework covering both developers and users.

Application Discovery

Portal also serves as the "app store" for the Abstract ecosystem. In the "Discover" section, high-quality applications selected by user votes are displayed and categorized: digital collectibles, games, NFTs, social, AI, trading, prediction markets, etc. Users can log in to these applications directly with their Abstract ID, allowing them to start experiencing immediately without a complicated 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" consumer-facing applications from Web3 projects and mainstream institutions.

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 subsidies. Development