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

Summary

• Abstract Chain will be launched in January 2025 as a user-centric blockchain, dedicated to promoting the widespread adoption of cryptographic technology and building a platform that is easily accessible and highly participatory.
• Abstract Chain offers a good user experience with native account abstraction, leveraging the established fan base of Pudgy Penguins and $PENGU to provide differentiated value through its 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 to join the ecosystem.
• This live streaming platform has attracted over 10,000 broadcasters, with users participating for an average of more than 7 minutes a 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 around 700,000 daily on-chain transactions, reflecting the platform's high activity level.

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. The chain employs an account abstraction mechanism to simplify wallet setup and on-chain signing processes, 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 applications targeting end users.

The competition in the blockchain ecosystem is fierce, but there is still some distance to go before true mass adoption by mainstream users. Early projects like Arbitrum and Optimism have successfully addressed performance bottlenecks, attracting crypto-native users. However, to achieve what is known as "end-user Crypto", it is necessary to establish 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 such as Telegram and LINE. This achieved some results, but this model, which relies 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: to promote the direct integration of blockchain technology into applications aimed at end users, allowing users to utilize it without any awareness.

The mainnet of Abstract will launch in January 2025, along with the portal platform "Portal" as the entrance to the gaming and application ecosystem. Portal is not only a window for content display but also a highly interactive online destination that integrates live streaming, rewards, collectibles, Spotlight( app recommendations), and other sections, creating a sticky user experience. This strategy differentiates Abstract from other chains and serves as 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 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 encouraging developers to build applications around trends. From a business perspective, this approach is similar to making customers use a specific payment card that can only be spent at certain stores.

Abstract Chain has taken a different approach. Instead of being centered around asset accumulation, it has built the portal platform (Portal) as a dynamic online hub, designed around the following three main functions:

• Basic services: Providing tools such as wallets, fiat entry, token exchange, etc., to enable 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 enables new users to quickly enter Web3, while existing users are continuously recalled by new content.

If we compare it to a shopping mall, Abstract is like operating a thriving large shopping center: integrating multiple stores in one place, with a central stage continuously hosting performances, maintaining high traffic and activity, encouraging customers to keep returning to 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 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.

Easy 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 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 are as easy 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 costs of on-chain interactions.

Once 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 offers recharge options including bridging and fiat currency recharge services, 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 entry barrier, 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(, Twitter), Instagram, and TikTok, and more than 500,000 $PENGU token holders, providing a ready user pool for the Abstract chain.

In Abstract's Portal, the image of Pudgy Penguins is as ubiquitous as Mickey Mouse in Disneyland: appearing on marketing banners, user avatars, live stickers, and more. For $PENGU holders, the Portal also has practical uses---they can use $PENGU tokens to tip during live broadcasts, which is one of the use cases for $PENGU on Abstract.

The synergy between this IP and platform functionality has greatly propelled the growth of Portal—1.61 million wallets were activated within two months of the mainnet launch.

Moreover, due to the wide distribution of Pudgy and $PENGU fans, the user profile of Abstract is also different from other end-user-oriented crypto ecosystems like TON and Kaia. Abstract attracts many users from 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 UK, France, Japan, South Korea, Singapore, and Hong Kong ). 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 "Digital Theme Park" ( 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.

The 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% have returned at least once to make a transaction within 30 days of creating their wallet, which is significantly higher than the industry average.

Live streaming feature

Live streaming is a medium favored by young people worldwide. 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 enhances platform stickiness and monetization potential. Live streaming has been proven to promote game and merchandise sales, aligning perfectly with Abstract's goal of building an entertainment ecosystem.

The "Watch and 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 streamers, with a total viewing time exceeding 500,000 hours. Some top streamers can receive tips of up to 9 ETH 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 having more than 4,000 interactive users.

Reward and Reputation System

Many crypto projects encourage early user participation through point systems, but truly complete loyalty and reputation systems in on-chain ecosystems are still rare. Abstract uses 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. Depending on the level of behavior and tasks, different types of badges will be minted as on-chain NFTs or displayed within the application, 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 system is expected to expand to the entire Abstract ecosystem, evolving into a loyalty and reputation framework that covers the whole ecosystem, aimed at both developers and users.

Application Discovery

Portal also serves as the "app store" for the Abstract ecosystem. The "Discover" section showcases excellent applications selected by user votes, categorized as: digital collectibles, games, NFTs, social, AI, trading, prediction markets, etc. Users can log in to these applications directly with their Abstract ID, allowing them to start experiencing immediately without the need for a 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" end-user applications from Web3 projects and mainstream enterprises.

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" (, providing developers with market support, technical guidance, and monthly stipends. Developers can earn XP rewards monthly based on user engagement, and outstanding projects have the chance to receive additional incentives. The live streaming platform also through