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

Summary

• Abstract Chain will be launched in January 2025, dedicated to being a user-centric blockchain that promotes the large-scale application of cryptographic technology, building an accessible and participatory platform.
• Abstract Chain offers a comfortable user experience brought by account abstraction, leveraging the established fan base of Pudgy Penguins and $PENGU to provide differentiated value through its unique user composition.
• Abstract's growth strategy revolves around building a digital entertainment theme park: featuring a unique portal platform that integrates live streaming and reward systems, attracting application developers into the ecosystem.
• The live streaming platform has attracted over 10,000 broadcasters, with users spending 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 applications: approximately 2 million registered wallet users, about 100,000 daily active wallets, and an average of around 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, aimed at providing mainstream end users with a seamless and differentiated Web3 experience. This chain employs an account abstraction mechanism to simplify wallet setup and on-chain signing processes, lowering the entry barrier. Through zk-rollup technology, Abstract offers low-cost, high-throughput on-chain transaction capabilities, providing scalability and security guarantees for applications aimed at end users.

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

Early explorations like TON and Kaia attempted 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 ecological openness of Web2 platforms, remains difficult to realize in mature markets like Europe and the United States.

Abstract Chain has chosen a different path: to promote the direct integration of cryptographic technology into applications aimed at end users, allowing users to utilize it directly without being aware of it.

The mainnet of Abstract will launch in January 2025, along with the portal platform "Portal" as the entry point for the gaming and application ecosystem. Portal is not only a content showcase but also a highly interactive online destination that integrates live streaming, rewards, collectibles, Spotlight) app recommendations(, and other sections to create a sticky user experience. This strategy differentiates Abstract from other chains and serves as the core engine for its growth.

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) Abstract Flywheel

The development of new chains 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 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 similar to having customers use a specific payment card that can only be spent at certain stores.

Abstract Chain takes a different approach. It is not centered around asset accumulation, but builds the portal platform )Portal( as a dynamic online hub, designed around the following three main functions:

• Basic Services: Provides tools such as wallets, fiat gateways, and token swaps, enabling 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 enter Web3, while existing users are continually recalled through new content.

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

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

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) 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. 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.

Simple onboarding experience

Abstract Chain is committed to eliminating traditional barriers and simplifying the onboarding process for users. Its native account abstraction feature allows users to easily create an Abstract account and activate their wallet 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 games. Additionally, the chain utilizes ZK 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 crypto tools through the Portal. The wallet in the upper left corner supports real-time trading functions and provides deposit options including bridging and fiat recharge 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 a total of over 3 million followers on X### original Twitter(, Instagram, and TikTok, with more than 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 in 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 greatly facilitated the growth of Portal—activating 1.61 million wallets within two months after the mainnet launch.

Moreover, due to the widespread fan base of Pudgy and $PENGU, the user profile of Abstract is also different from other end-user-oriented crypto ecosystems such as 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, and Hong Kong. This user group is highly valuable for end-user-oriented applications and provides a strong foundation for Abstract to build a high-quality consumer ecosystem.

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) 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.

Initial 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 engagement time of over 7 minutes. Among Abstract Global Wallet ) AGW ( users, 40% returned 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 medium 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 potential. Live streaming has been proven to drive 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 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 more than 1,000 streamers, with a total viewing time exceeding 500,000 hours. Some top streamers can even receive tips of up to 9 ETH per live broadcast. The top 100 streamers account for a significant portion of the platform's tip income, with personal monthly incomes ranging between $4,000 and $5,000, and they have over 4,000 interactive users.

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Reward and Reputation System

Many crypto projects encourage early users to participate through point mechanisms, 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. 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, the 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 to the entire Abstract ecosystem, evolving into a loyalty and reputation framework that covers the whole ecosystem and is aimed at developers and users.

Application Discovery

Portal also serves as the "app store" for the Abstract ecosystem. The "Discover" section showcases outstanding applications voted by users, 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 immediately without the cumbersome 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 "interesting" applications aimed at end users from Web3 projects and mainstream enterprises.

Web3 project

Abstract is fully compatible with 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"###, 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 embeds links.