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

TL;DR

• Abstract Chain is a consumer-oriented blockchain launched in January 2025, dedicated to promoting the popularization 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 while leveraging the established Pudgy Penguins and PENGU fan community 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 user participation duration of over 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: 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 around 700,000, reflecting the platform's high level of activity.

Introduction

Abstract Chain is a Layer 2 blockchain based on Ethereum, established in March 2024, using zero-knowledge encryption ( zk ) technology, dedicated to providing a smooth and differentiated Web3 experience for mainstream consumers. The chain employs an account abstraction mechanism, simplifying wallet setup and on-chain signing processes, thereby lowering the entry barrier. Through zk-rollup technology, Abstract offers low-cost, high-throughput on-chain transaction capabilities, ensuring scalability and security for consumer applications.

Despite the intense competition in the blockchain ecosystem, there is still some distance to go before achieving true widespread mainstream user adoption. Early projects like Arbitrum and Optimism have successfully addressed performance bottlenecks and attracted crypto-native users. However, to realize the so-called "consumer-grade cryptocurrency," it is necessary to build a Web3 platform with a low entry barrier and high user stickiness.

Early explorations such as TON and Kaia attempted to reduce user acquisition costs by integrating Web3 into mainstream social platforms like Telegram and LINE. Although some success has been achieved, this model, which relies on the openness of the Web2 platform ecosystem, is still difficult to realize in mature markets like Europe and the United States.

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

The mainnet of Abstract will be launched in January 2025, along with the portal platform Portal, which serves as an entry point for games and application ecosystems. Portal is not just a content display window, but a highly interactive online destination that integrates sections such as 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.

The Business Flywheel of Abstract

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 will 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 has recently gained popularity due to meme coins. These native assets bind users to the chain, while also attracting developers to build applications around the trends. In a commercial analogy, 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 around asset accumulation, but instead 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., empowering the ability to enter the ecosystem.
• User Interaction: Live streaming and the 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 attracted by new content.

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

The following analysis revolves around three core growth areas: user acquisition >> portal hosting >> application ecosystem driving. Together, they form the core components of the Abstract platform's business flywheel.

A. User Guidance

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 the chain a significant advantage in converting interest into actual users.

Easy onboarding experience

Abstract Chain is dedicated to simplifying the user onboarding process and eliminating traditional barriers. Through 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. In addition, the chain uses zero-knowledge rollup technology, ensuring extremely low gas fees and high parallel processing capabilities, greatly 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 functionality and offers deposit options including cross-chain bridges and fiat currency deposits, enabling quick fund deposits. The trading section of the Portal supports native token swaps without the need to search for third-party services. These integrated features collectively lower the barriers to entry, 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 of Pudgy Penguins. Pudgy Penguins has over 3 million fans on X(, Twitter), Instagram, and TikTok, and has 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 for PENGU on Abstract.

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

Moreover, due to the wide distribution of Pudgy and PENGU fans, 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, while the remaining users are primarily distributed across European and East Asian countries ( Germany, the United Kingdom, France, Japan, South Korea, Singapore, Hong Kong, etc. ). This user group is very valuable for consumer-facing 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.

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 daily user retention time exceeding 7 minutes. Among users of the Abstract Global Wallet ) AGW (, 40% return to conduct 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 around the world. 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 capabilities. Live streaming has been proven to facilitate game and merchandise sales, which aligns closely with Abstract's goal of building an entertainment ecosystem.

The "Watch-to-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 foster 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 duration 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 truly complete loyalty and reputation systems are still rare in on-chain ecosystems. Abstract builds this infrastructure using XP and badge system )Badges(.

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 by connecting 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 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 functionality limited to within the Portal. However, in the future, the XP and badge systems are expected to expand to the entire Abstract ecosystem, developing into a comprehensive loyalty and reputation framework that covers both developers and users.

Application Discovery

Portal also acts 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, etc. Users can log into these applications directly using their Abstract ID, allowing them to start experiencing them immediately without a complex 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 "interesting" 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"), which provides developers with market support, technical guidance, and monthly subsidies. Developers can participate based on user engagement.