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

Overview

• Abstract Chain will be launched in January 2025, as a user-centric blockchain dedicated to promoting the widespread adoption of encryption technology and building a platform that is accessible and engaging.
• Abstract Chain provides a smooth user experience through native account abstraction, utilizing the established fan base of Pudgy Penguins and $PENGU, with its unique user composition offering differentiated value.
• 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 to join 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: approximately 2 million registered wallet users, around 100,000 daily active wallets, and about 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, dedicated to providing mainstream end users with a seamless and differentiated Web3 experience. The chain adopts an account abstraction mechanism, simplifying wallet setup and on-chain signing processes, lowering the barrier to entry. Through zk-rollup technology, Abstract is able to provide 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 long way to go before true mass mainstream user adoption. Early projects like Arbitrum and Optimism have successfully addressed performance bottlenecks and attracted crypto-native users. However, to achieve what is called "Crypto for the end user," it is necessary to build a Web3 platform with low entry barriers and high stickiness.

Early explorations like TON and Kaia attempted to lower user acquisition costs by integrating Web3 into mainstream social platforms such as Telegram and LINE. This has achieved some success, but this reliance on a model that depends on the openness of Web2 platform ecosystems is still difficult to realize in mature markets like Europe and the United States.

Abstract Chain has chosen a different path: promoting the direct integration of cryptographic technology into applications aimed at end users, allowing users to use it unconsciously.

The mainnet of Abstract will be launched in January 2025, along with the launch of a portal platform called "Portal" as the entry point for the game and application ecosystem. Portal is not only a showcase for content 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 becomes the core engine for its growth.

The flywheel effect of Abstract

The development of new chains usually starts with building a developer ecosystem, gradually increasing the on-chain locked value ( TVL ) through the introduction of on-chain application development and 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 instance, Ethereum was initially driven by the NFT boom, while Solana has recently gained popularity due to meme coins. These native assets bind users to the blockchain while encouraging developers to build applications around the trends. In a business analogy, this approach is akin to having customers 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 dynamic online hub centered around the following three main functions:

• Basic services: provide tools such as wallets, fiat entry, token exchange, etc., to enable access to the ecosystem.
• User Engagement: Enhance user stickiness through live streaming and the rewards center
• Project Discovery: The Spotlight section guides users to explore new content

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, Abstract is similar to a thriving large shopping center: it integrates multiple stores in one place, continuously hosts performances on the central stage, maintains high foot traffic and activity, allowing customers to return frequently and enjoy.

The following analysis will focus on three key growth areas: user traffic >> portal adoption >> application ecosystem drive. Together, these 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 this chain a significant advantage in converting attention into actual users.

Easy Entry Experience

Abstract Chain is dedicated 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 and transfer operations are as simple as browsing the web or playing games. Additionally, the chain employs ZK rollup technology, ensuring extremely low gas fees and high concurrency 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 top left corner supports real-time trading functions and provides recharge options including cross-chain and fiat currency deposit 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 barrier to use, allowing users to enter the on-chain world without obstacles.

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, and more than 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 the platform's features greatly promoted the growth of Portal---1.61 million wallets were activated within 2 months after the mainnet launch.

More importantly, 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 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 primarily distributed across European and East Asian countries such as ( Germany, the United Kingdom, France, Japan, South Korea, Singapore, and Hong Kong, etc. ). This user group is very valuable for end-user-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 "数字主题公园(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 exceptionally 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 retention time exceeding 7 minutes. Among users of the Abstract global wallet ( AGW ), 40% returned to conduct transactions at least once 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 around the world. Web2 platforms like Twitch attract 240 million unique users each month. For Abstract, live streaming is not only a reason for users to return, but also enhances platform stickiness and monetization potential. Live streaming has been proven to promote 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, etc., allowing both streamers and viewers to earn tokens, rewards, or experience points ( XP ). In addition, the "Follow" and "Recommend" features help build a community atmosphere, promoting continuous user visits and social sharing.

As of the end of April 2025, Portal has gathered over 1,000 broadcasters, with a total viewing time exceeding 500,000 hours. Some top broadcasters can even receive tips of up to 9 ETH per live stream. The top 100 broadcasters 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 more than 4,000 interactive users.

Reward and Reputation System

Many crypto projects encourage early user participation through point systems, 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 interactions, 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. Different types of badges will be minted 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.

Currently, the 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 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 "Discovery" section showcases outstanding applications selected by user votes, 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, allowing them to start experiencing without the cumbersome 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" applications from Web3 projects and mainstream enterprises aimed at end users.

Web3 project

Abstract is fully compatible with the 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. Developers can