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

TL;DR

• Abstract Chain is a consumer-centric blockchain launched in January 2025, dedicated to promoting the mainstream adoption of cryptocurrency technology and building an easily accessible and participatory platform.
• Abstract Chain provides a seamless user experience through native account abstraction and leverages the established Pudgy Penguins and PENGU fan community to offer differentiated value through a unique user structure.
• Abstract's growth strategy revolves around building a digital entertainment theme park: owning 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 time exceeding 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 adoption: 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 activity level.

Introduction

Abstract Chain is a second-layer blockchain based on Ethereum, established in March 2024, utilizing zero-knowledge encryption (zk) technology, dedicated to providing mainstream consumers with a seamless and differentiated Web3 experience. 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 is able to offer low-cost, high-throughput on-chain transaction capabilities, ensuring scalability and security for consumer applications.

Although the blockchain ecosystem is highly competitive, true large-scale mainstream user adoption is still a long way off. Early projects like Arbitrum and Optimism have successfully addressed performance bottlenecks, attracting crypto-native users. However, achieving what is known as "consumer-grade crypto" still requires building a Web3 platform that has a low entry barrier and high stickiness.

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 was made, this model, which relies on the ecosystem openness of Web2 platforms, remains difficult to realize 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 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; it is 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 a core engine for its growth.

Abstract's business flywheel

The development of a new blockchain usually 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 incentivize 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 driven by the NFT craze, 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 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 has taken a different approach. It has not focused on asset accumulation, but instead has built the portal platform (Portal) as a vibrant online hub, designed around the following three main functions:

• Basic Services: Provides tools such as wallets, fiat entry, token exchange, etc., enabling entry into the ecosystem.
• User interaction: Live streaming and reward 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 drawn back by new content.

Metaphorically, Abstract is similar to managing a thriving large shopping mall: integrating multiple stores in one place and continuously hosting performances on the central stage to maintain high traffic and activity, encouraging customers to return for enjoyment.

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

A. User Guide

Abstract's initial user base heavily relies on its association with the Pudgy Penguins IP and its extremely user-friendly design philosophy. While fans of Pudgy and PENGU continue to flock to Abstract, its smooth onboarding experience gives the platform a significant advantage in converting interest into actual users.

Easy onboarding experience

Abstract Chain is committed to simplifying the user onboarding process by eliminating traditional barriers. With the native account abstraction feature, users can 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 intuitive as browsing the web or playing games. Additionally, the chain utilizes zero-knowledge rollup technology, ensuring extremely low gas fees and high parallel processing capabilities, greatly reducing the cost of on-chain interactions.

Once 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 features and provides recharge options, including bridging and fiat deposit services, for 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 reduce barriers to use, 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 over 3 million followers on X( original Twitter), Instagram, and TikTok, as well as 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 at 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 the platform's functions has greatly driven the growth of Portal—activating 1.61 million wallets within two months after the mainnet launch.

Moreover, due to the widespread distribution of Pudgy and PENGU fans, the user profile of Abstract 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, with the remaining users primarily located in European and East Asian countries such as ( Germany, the United Kingdom, France, Japan, South Korea, Singapore, and Hong Kong ). This user group is very valuable for consumer-facing applications and provides 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)". It 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 users spending an average of over 7 minutes per day. 40% of Abstract Global Wallet ( AGW ) users return to trade at least once within 30 days of creating their wallet, which is significantly higher than the industry average.

Live streaming feature

Live streaming is a media 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 the platform's stickiness and profitability. Live streaming has been proven to boost 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 methods, 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 streamers, with a total viewing time exceeding 500,000 hours. Some top streamers have received tips as high as 9 ETH in a single live broadcast. The top 100 streamers account for a significant portion of the platform's tip revenue, with personal monthly incomes ranging between $4,000 and $5,000, and having over 4,000 interactive users.

Reward and Reputation System

Many crypto projects encourage early users to participate through point mechanisms, but a truly complete loyalty and reputation system is still scarce in the on-chain ecosystem. Abstract uses the 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 by connecting social accounts or using recommended applications.

At the same time, the badge feature allows users to showcase their achievements. Depending on behaviors and task levels, different types of badges will be issued as on-chain NFTs or displayed within the application, becoming part of the user's identity and gradually forming a complete reputation system.

The system is currently 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 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, excellent applications selected by user votes are showcased, categorized by: digital collectibles, games, NFTs, social, AI, trading, prediction markets, and more. Users can log in to these applications directly using their Abstract ID, allowing them to start experiencing immediately without a complicated 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" consumer-facing applications from Web3 projects and mainstream institutions.

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 market support, technical guidance, and monthly grants to developers. Developers can earn monthly XP rewards 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 to drive traffic to applications.

Games are an important entry point for bringing Web2 users into the Web3 world. Among the top 10 most popular applications on Abstract,