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

Overview

• Abstract Chain will be launched in January 2025, dedicated to being a user-centric blockchain that promotes the large-scale adoption of crypto technology and builds a platform that is easy to access and highly participatory.
• Abstract Chain provides a comfortable user experience through its original account abstraction, leveraging the established fan base of Pudgy Penguins and $PENGU to offer differentiated value through its unique user architecture.
• Abstract's growth strategy revolves around creating a digital entertainment theme park: having a dedicated portal platform, integrating live streaming and reward systems, and attracting application developers to join the ecosystem.
• This live streaming platform has attracted over 10,000 hosts, 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 an average of 700,000 on-chain transactions per day, reflecting the high activity level of the platform.

Introduction

Abstract Chain was established in March 2024 and is a Layer 2 blockchain based on Ethereum, employing zero-knowledge proof (zk) technology, dedicated to providing mainstream end users with a seamless and differentiated Web3 experience. 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 provides 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 a distance to go before true mass adoption by mainstream users. Early projects like Arbitrum and Optimism have successfully addressed performance bottlenecks and attracted crypto-native users. However, to achieve what is called "Crypto for end users", it is necessary to build a Web3 platform that combines low barriers to entry with high user engagement.

Early exploratory attempts like TON and Kaia aimed to reduce user acquisition costs by integrating Web3 into mainstream social platforms such as Telegram and LINE. This has yielded some results to a certain extent, 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 chosen a different path: to promote the direct embedding of cryptographic technology into applications aimed at end users, allowing users to use it seamlessly.

The mainnet of Abstract will be launched in January 2025, alongside the launch of the portal platform "Portal" as an entry point for the gaming and application ecosystem. Portal is not only a content showcase window but also a highly interactive online destination, integrating live streaming, rewards, collectibles, Spotlight( app 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 chain typically starts with building a developer ecosystem, gradually increasing the on-chain locked value ( TVL ) through on-chain application development and the introduction of 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 boom, while Solana has recently gained popularity due to meme coins. These native assets bind users on-chain while incentivizing developers to build applications around trends. From a business analogy perspective, this approach is akin to having customers use a specific payment card that can only be used at certain stores.

Abstract Chain takes a different approach. It is not centered on 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 gateways, and token exchanges, offering access to the ecosystem.
• User Interaction: Enhance user engagement through live streaming and the rewards center
• Project Discovery: Guide users to explore new content through the Spotlight section.

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

If we compare it to a shopping mall, Abstract is similar to managing a prosperous large shopping center: integrating multiple stores in one place, continuously hosting performances on a central stage, maintaining high foot traffic and activity, allowing customers to keep coming back and enjoy the experience.

The following analysis will focus on three key growth areas: user traffic >> portal reception >> application ecosystem drive. These together 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 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.

Easy Start Experience

Abstract Chain is committed to eliminating traditional barriers and simplifying the user onboarding process. Its native account abstraction feature allows users to easily create Abstract accounts and enable 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 feel as simple as browsing the web or playing games. In addition, the chain utilizes ZK rollup technology to ensure extremely low gas fees and high concurrent processing capability, 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 functions and provides deposit options including cross-chain bridges and fiat currency services, allowing for quick entry of funds. 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 barriers to use, enabling users to seamlessly enter the on-chain world.

Using Pudgy fans as the initial user base

Abstract leverages the vast 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 user pool for the Abstract chain.

In the Abstract Portal, the image of Pudgy Penguins is as ubiquitous as Mickey Mouse at Disneyland: appearing in marketing banners, user avatars, live streaming 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 available use cases for $PENGU on Abstract.

The synergy between this IP and the platform's functions greatly promoted the growth of Portal---1.61 million wallets were activated within two months after the mainnet launch.

More importantly, due to the widespread distribution of Pudgy and $PENGU fans, the user profile of Abstract is different from other end-user-oriented crypto ecosystems like TON and Kaia. Abstract has attracted a large number of users from developed markets – 17.4% from the United States, with the remaining users mainly distributed across European and East Asian countries such as ( Germany, the UK, France, Japan, South Korea, Singapore, Hong Kong, etc. ). This user group is highly valuable for end-user-oriented 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 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 is performing quite well. As of March 2025, Portal has over 600,000 monthly active users ) MAU ( and 100,000 daily active users ) DAU (, with an average daily user stay time exceeding 7 minutes. Among users of Abstract Global Wallet ) AGW (, 40% return at least once to make a transaction within 30 days of creating their wallet, which is significantly higher than the industry average retention rate.

Live streaming feature

Live streaming is a medium 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 increases 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 "Stream-to-Earn" model introduced by Abstract ) allows users to earn through watching and encourages participation through tips, comments, gifts, etc., enabling both streamers and viewers to receive tokens, rewards, or experience points ( XP ). Additionally, the "Follow" and "Recommend" features help build a community atmosphere, promoting users' continued 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 can earn up to 9 ETH in tips 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 they have over 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 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 activities 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 app, becoming part of the user's identity and gradually forming a complete reputation system.

Currently, this system is still in its early stages, with functions limited to within the Portal. However, in the future, the XP and badge system is expected to expand across the entire Abstract ecosystem, evolving into a loyalty and reputation framework that covers the whole ecosystem and serves both developers and users.

Application Discovery

Portal also serves as the "app store" for the Abstract ecosystem. The "Discover" section showcases outstanding applications voted on by users, categorized into: digital collectibles, games, NFTs, social, AI, trading, prediction markets, and more. Users can log in to these applications directly with their Abstract ID, starting their experience 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 the EVM) Ethereum Virtual Machine### and also supports the migration of existing Ethereum smart contracts, facilitating cross-chain deployment. The platform has launched the "Builder-in-Residence Program"(, which provides 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.