Abstract Chain Panorama Analysis: How to Build a Consumer-Oriented Public Chain Ecosystem?

TL;DR

• Abstract Chain is a consumer-oriented blockchain that will be launched in January 2025, dedicated to promoting the popularization of cryptographic technology and building a platform that is easy to access and participate in.
• Abstract Chain provides a smooth user experience through native account abstraction, leveraging the advantages of established Pudgy Penguins and PENGU fan communities to offer differentiated value with a unique user structure.
• 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 daily user engagement time exceeding 7 minutes 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: 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 approximately 700,000, reflecting the platform's high activity level.

Introduction

Abstract Chain is an Ethereum-based Layer 2 blockchain established in March 2024, utilizing zero-knowledge encryption ( zk ) technology, aimed at providing a smooth and differentiated Web3 experience for mainstream consumers. This 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 capable of providing 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 a distance to true large-scale mainstream user adoption. Early projects like Arbitrum and Optimism have successfully addressed performance bottlenecks, attracting crypto-native users. However, to achieve what is known as "consumer-grade crypto," a Web3 platform with low entry barriers and high stickiness 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 and LINE. Although some progress has been made, this model, which relies on the openness of Web2 platform ecosystems, remains difficult to achieve in mature markets like Europe and the United States.

Abstract Chain has chosen a different path: directly embedding encryption technology into consumer applications, encouraging users to use it unknowingly.

The mainnet of Abstract will launch in January 2025, along with the Portal platform serving as an entry point for games and applications. The Portal is not just a showcase for content; it is 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 becomes the core engine for growth.

Abstract's Business Flywheel

The development of a new blockchain typically begins with building a developer ecosystem, gradually increasing the on-chain locked value ( TVL ) through the development of on-chain applications and the introduction of DeFi protocols. To attract users, projects encourage participation through methods such as airdrops.

The network effects of this model mainly rely on the on-chain assets held by users. For example, Ethereum was initially dominated by the NFT boom, while Solana recently gained popularity due to meme coins. These native assets bind users on-chain, while also guiding developers to build applications around trends. In business terms, 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 on asset accumulation, but instead builds the portal platform (Portal) as a vibrant online hub, designed around the following three main functions:

• Basic services: Provide tools such as wallets, fiat entry, and token exchange, empowering access to the ecosystem.
• User Interaction: Live streaming and reward center enhance user stickiness.
• Project Discovery: The Spotlight section guides users to explore new content.

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

Metaphorically likened to a shopping mall, Abstract is similar to operating a thriving large shopping center: integrating multiple stores in one place, continuously holding performance events on a central stage, maintaining high foot traffic and activity, and ensuring that customers keep coming back to enjoy.

The following analysis will focus on three core growth areas: user acquisition >> portal hosting >> application ecosystem drive. Together, they form the key components of the Abstract platform's business flywheel.

A. User Guide

The initial user base of Abstract heavily relies on its association with the Pudgy Penguins IP and its extremely simple and user-friendly design philosophy. Although fans of Pudgy and PENGU continue to flock to Abstract, it is its smooth onboarding experience that gives the chain a significant advantage in converting interest into actual users.

Easy to get started experience

Abstract Chain is committed to simplifying the user onboarding process, eliminating traditional barriers. With the native account abstraction feature, users can easily create an Abstract account and activate their wallet just like registering for an ordinary 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. Furthermore, 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 creating an account, users 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, for quick fund transfers. The trading section of the Portal supports native coin exchanges, eliminating 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 followers on X(, 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 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 for PENGU on Abstract.

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

More importantly, due to the wide distribution of fans for Pudgy and PENGU, Abstract's user profile differs from other consumer-grade crypto ecosystems like TON and Kaia. Abstract has attracted a large number of users in developed markets---with 17.4% from the United States, and 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 base is very 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 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.

According to early data, 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 Abstract Global Wallet ) AGW (, 40% return to make at least one transaction within 30 days of creating their wallet, a retention rate 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 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 boost game and merchandise sales, which aligns closely with Abstract's goal of building an entertainment ecosystem.

The "Watch and 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 (. Additionally, the "Follow" and "Recommend" features help build a community atmosphere, promoting continuous user engagement and social sharing.

By the end of April 2025, Portal has gathered more than 1,000 streamers, with a total viewing time exceeding 500,000 hours. Some top streamers have received 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 individual monthly incomes ranging from $4,000 to $5,000, and having over 4,000 interactive users.

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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 XP and badge system )Badges( to build this infrastructure.

Abstract uses off-chain XP as the main 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 connecting social accounts or using recommended applications.

At the same time, through the badge function, users can showcase their achievements. Different types of badges will be issued 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 the early stages, with functionality limited to within the Portal. However, in the future, the XP and badge system is expected to expand throughout the Abstract ecosystem, evolving into a comprehensive loyalty and reputation framework that encompasses 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 using their Abstract ID, allowing them to start experiencing immediately without a complicated registration process.

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) 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 consumer-facing "fun" applications from Web3 projects and mainstream institutions.

Web3 project

Abstract and EVM### Ethereum Virtual Machine( complete