Abstract Chain Panorama Analysis: How to Bring Public Chain Ecosystem to Mainstream Users?

TL;DR

• Abstract Chain will be launched in January 2025. It is a consumer-centric blockchain dedicated to promoting the popularization of cryptographic technology and creating an accessible, engaging platform.
• Abstract Chain offers a smooth user experience brought by native account abstraction, leveraging the established advantages of the Pudgy Penguins community and the PENGU fanbase, providing differentiated value through its unique user structure.
• The growth strategy of Abstract 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.
• As of the end of May this year, the live streaming platform has attracted over 10,000 broadcasters, with an average daily user engagement time exceeding 7 minutes and a 30-day retention rate of 40%. The live streaming feature has become one of the main competitive advantages.
• Abstract Chain has now achieved large-scale applications: nearly 2 million wallet registered users, about 100,000 daily active wallets, and approximately 700,000 on-chain transactions per day, reflecting a very high level of platform activity.

Introduction

Abstract Chain was established in March 2024 and is a Layer 2 blockchain based on Ethereum, utilizing zero-knowledge encryption (zk) technology, dedicated to providing mainstream consumers with a seamless and differentiated Web3 experience. This chain adopts an account abstraction mechanism to simplify wallet setup and on-chain signing processes, lowering the entry barrier. Through zk-rollup technology, Abstract provides low-cost, high-throughput on-chain transaction capabilities, bringing scalability and security assurance to consumer-oriented applications.

Despite the fierce competition in the blockchain ecosystem, there is still a long way to go before true mass mainstream user adoption. Early successes like Arbitrum and Optimism have addressed performance bottlenecks and attracted crypto-native users. However, to achieve what is known as "consumer-grade Crypto," it is necessary to build a Web3 platform that combines low barriers to entry with high stickiness.

TON and early explorations like Kaia attempted to reduce user acquisition costs by integrating Web3 into mainstream social platforms like Telegram and LINE. Although some success was achieved, this model, which relies on the openness of Web2 platform ecosystems, still struggles to take root in mature markets like Europe and the United States.

Abstract Chain has chosen another path: promoting seamless user adoption by directly embedding cryptographic technology into consumer applications. The mainnet of Abstract will go live in January 2025, along with the launch of the portal platform Portal, serving as the gateway to its gaming and application ecosystem. Portal is not only a content showcase but also a highly interactive online destination, integrating live streaming, rewards, collectibles, and Spotlight (application recommendations), creating a sticky user experience. This strategy distinguishes Abstract from other chains, becoming the core engine of its growth.

Abstract's business flywheel

The development of a new chain typically begins with establishing 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, project teams often incentivize 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 driven early on by the NFT craze, while Solana recently gained popularity due to meme coins. These native assets tie users to the blockchain while driving developers to build applications around trends. If we use merchants as an analogy, this approach is more like attracting customers to use a specific payment card that can only be spent at certain stores.

Abstract Chain takes a different approach. It does not focus on asset accumulation, but instead builds the portal platform (Portal) into a dynamic online center, designed around the following three main functions:

1. Basic services: Wallet, fiat currency entry, token exchange and other tools provide the ability to enter the ecosystem;
2. User Interaction: Live streaming and the rewards center enhance user engagement;
3. Project Discovery: The Spotlight section guides users to explore new content.

This system ensures that new users can quickly access Web3, while existing users are continuously attracted back by new content.

To use a shopping mall as an analogy, Abstract is more like operating a thriving large shopping center: integrating multiple shops in one location and continuously hosting performance events on the central stage to maintain high traffic and activity, encouraging customers to keep returning and enjoying the experience.

The following analysis will focus on three key growth areas: user inflow >> portal support >> application ecosystem drive. Together, they constitute the core components of the Abstract platform's business flywheel.

A. User Guide

The initial user base of Abstract largely benefits from its association with the Pudgy Penguins IP, along with a very simple and user-friendly design concept. Although fans of Pudgy and PENGU continue to flock to Abstract, its smooth onboarding experience gives this chain a significant advantage in converting attention into real users.

Easy to get started experience

Abstract Chain is committed to simplifying the user onboarding process by eliminating traditional barriers. Its native account abstraction feature allows users to easily create an Abstract account and enable a 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. In addition, the on-chain use of zero-knowledge rollup technology ensures extremely low gas fees and high concurrency capabilities, significantly reducing costs for on-chain interactions.

After users create an account, they can immediately use all basic crypto tools through the Portal. The wallet located in the upper left corner supports real-time trading functionality and provides deposit options, including bridging and fiat deposit services, for quick funding. The trading section of the Portal supports native currency exchanges without the need to search for third-party services. These integrated features collectively lower the barriers to entry, allowing users to seamlessly access the on-chain world.

Pudgy fans as an early user base

Abstract leverages the large and active fan community of Pudgy Penguins. Pudgy Penguins have over 3 million fans across X (formerly Twitter), Instagram, and TikTok, along with more than 500,000 PENGU holders, providing a ready user pool for Abstract's chain. In Abstract's Portal, the image of Pudgy Penguins is omnipresent, like Mickey Mouse in Disneyland: it appears in marketing banners, user avatars, and live stream stickers. For PENGU holders, the Portal also has practical uses—they can tip live streams using PENGU Token, which is one of the scenarios where PENGU can be used on Abstract.

The synergy between this IP and platform functions has greatly promoted the growth of Portal—attracting 1.61 million wallet activations within two months of the mainnet launch. More critically, due to the widespread fan distribution of Pudgy and PENGU, 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 from developed markets—17.4% of whom are from the United States, while the remaining users are mainly distributed across European and East Asian countries, including Germany, the UK, France, Japan, South Korea, Singapore, and Hong Kong. This user group is highly valuable for consumer applications, providing a strong foundation for Abstract to build a high-quality consumer ecosystem.

Source: Abstract Official

B. Gateway Platform

The portal platform of Abstract is called "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 is performing impressively. 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 stay time of over 7 minutes. Among Abstract's global wallet (AGW) users, 40% return for at least one transaction within 30 days of creating a wallet, which far exceeds the industry average retention rate.

Live Streaming Feature

Live streaming is a medium that is highly popular among young people globally. Web2 platforms like Twitch attract 240 million unique users each month from all over the world. 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, which is highly consistent with Abstract's goal of creating an entertainment ecosystem.

The "Stream-to-Earn" model launched by Abstract encourages users to participate interactively, including through tipping, commenting, gifting, 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 engagement and social sharing.

As of the end of April 2025, Portal has accumulated over a thousand broadcasters, with total live streaming watch time exceeding 500,000 hours. Some top broadcasters have even received tips as high as 9 ETH in a single session. The top 100 broadcasters account for a significant share of the platform's tip income, with personal monthly earnings ranging between $4,000 and $5,000, and interactive users exceeding 4,000.

Rewards and Reputation System

Many crypto projects incentivize early user participation through point systems, but truly comprehensive loyalty and reputation systems are still scarce in the on-chain ecosystem. Abstract builds such an infrastructure with the XP and Badges system.

Abstract Use 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 engagement tasks, and regular users can earn XP through actions such as linking social accounts or using recommended applications.

At the same time, the badge feature allows users to showcase their achievements. Depending on behavior and task levels, different types of badges will be minted as on-chain NFTs or displayed within the app, 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 the Portal. However, in the future, the XP and badge system is expected to expand throughout the Abstract ecosystem, developing into a comprehensive loyalty and reputation framework that serves both developers and users.

Application Discovery

Portal also plays the role of an "app store" for the Abstract ecosystem. The "Discover" section showcases high-quality applications selected by user votes and categorizes them into sections, including: digital collectibles, games, NFTs, social, AI, trading, and prediction markets, etc. Users can log in to these applications directly using their Abstract ID and start experiencing them immediately without the hassle of a complicated registration process.

C. Application Ecosystem

The ultimate success of any blockchain depends on its ability to incubate a rich and diverse application ecosystem. For Abstract, its mission is to attract consumer-oriented "fun" 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," providing developers with market support, technical guidance, and a monthly stipend. Developers can earn monthly XP rewards based on user engagement, and outstanding projects have the opportunity to receive additional incentives. The live streaming platform will also promote featured games through embedded links to drive traffic to applications.

Games are an important entry point for attracting Web2 users into the Web3 world. Among the top ten popular applications in Abstract, eight are game-related products. Popular games include Pudgy World, Bigcoin, BTC Mining Game, adventure titles like Onchain Heroes and LOL Land, as well as the Pudgy IP game launched by YGG, and community projects like Gigaverse.

By collaborating with NFT platforms such as Magic Eden and OpenSea, Abstract has enabled the buying and trading of game assets, further enriching the gaming ecosystem. Currently, there are over 120 projects deployed on Abstract, covering social applications like "Gacha", trading platforms like "BuzzFun" and "Myriad", as well as games like "Gigaverse", "Onchain Heroes", and "Multiplier".

The strong user base of Abstract allows new projects to quickly gain attention. For example, "Duper" and "Witty" attracted 50,000 users within just a few days of their launch; the prediction market "Myriad" attracted nearly 500,000 users within two months of its launch. These success stories greatly enhance developers' confidence and motivate more teams to invest in building.

Mainstream Institutions

Abstract is actively collaborating with consumer-facing institutions, such as music and sports brands, to migrate their Web3 products on-chain. For example, digital collectibles like NBA Top Shots will be issued in the form of NFTs, allowing fans to buy, hold, and trade. These sports and music enthusiasts align perfectly with Abstract's consumer positioning.

For institutions looking for on-chain partners, Abstract has natural advantages—Ethereum-level security, a user-friendly interface, and low barriers to access are its core selling points. Although specific collaborations have not all been officially announced yet, once launched, it is expected to bring a large number of mainstream Web3 users to Abstract, allowing them to truly immerse themselves in the on-chain experience.

Recently, Oracle Red Bull Racing launched an on-chain fan interaction project called In the Moment on Abstract, targeting Gen Z and Gen A youth. This project combines classic F1 moments with digital ownership and interactive experiences. It transforms viewers from passive spectators into active participants and is a multi-year strategic deployment aimed at attracting young people to convert their interests into a sense of belonging and even a "shareholder" mentality through collectible and interactive on-chain methods.

Core Concept: Consumer-grade Encryption

Abstract co-founder Luca Netz clearly stated: Abstract's mission is to create "consumer-grade crypto" - that is, to build a large-scale pathway for the widespread adoption of "blockchain applications that serve the daily lives of billions of people and meet their personal needs."

They believe that the best way to guide the first 50 million users into the crypto world is to focus on "non-essential consumption" scenarios, which are activities that bring joy, evoke emotional resonance, and can enhance the experience through crypto technology.

Abstract Chain is the main platform for this vision of consumption in cryptocurrency. The unique features of blockchain technology—digital ownership, censorship resistance, and borderless payment capabilities—enable unprecedented user experiences in consumption scenarios such as gaming, social interaction, meme culture, and collectibles. Abstract will thoroughly unleash this potential through user-centered product design, making the daily lives of millions of users more enjoyable.

As Michael Lee, co-founder and CEO of Abstract, stated, this generation of users has completely transformed the entertainment, music, and luxury industries: from publishers to streamers, from viewers to athletes, from businesses to creators, and from price tags to cultural value. Abstract's mission is to bring "happiness, ownership, and creativity" back into everyone's hands and make all of it accessible.

At the same time, this strategy of "growth driven by non-essential consumption" also means that Abstract may intentionally overlook certain technology stacks valued by mainstream blockchains, such as advanced DeFi modules, DePin (decentralized infrastructure networks), RWA (real-world assets), and so on. Therefore, users should not expect Abstract to rapidly increase TVL like DeFi-centric chains.

Initial chain performance

In July 2024, Abstract officially stepped into the spotlight, announcing the completion of a $11 million funding round led by Founders Fund, and simultaneously launching the public test network (Testnet). Subsequently, the mainnet officially went live on January 27, 2025, with over 120 applications deployed in the first batch.

By May 2025, Abstract has created nearly 2 million wallets, with a total of 1.4 million contracts deployed, and the total value secured (TVS) on the chain has reached 53.4 million dollars. At the beginning of March, the daily transaction volume once reached 1.5 million, then stabilized around 500,000; by May, the cumulative number of on-chain transactions had reached 60 million.

The platform's activity over the past 30 days has also shown strong momentum: the total revenue of the top five applications reached $1.85 million, and the total trading volume of NFTs surpassed $10.4 million. Abstract Chain has yet to release its native token. Since zk-rollup technology itself does not require an on-chain token for gas fee payments, future Abstract tokens will need to break away from traditional models in their functional design, endowing them with new practical value.

On-chain Indicator Comparison

Abstract's market strategy (GTM) focuses on consumer adoption rather than traditional DeFi total value locked (TVL) or developer ecosystem share. Therefore, its target user group includes NFT collectors, gamers, streamers, and casual users on social platforms.

From February to May 2025, Abstract's TVS (Total Value Secure) grew by 150%, jumping from $20 million to $50 million. The peak number of active addresses reached 2 million, then stabilized at around 500,000. During the same period, the cumulative transaction volume reached 60 million. Abstract's initial projects focused on the two verticals of NFT and gaming, accurately aligning with its "consumer-oriented" positioning, striving to capture the on-chain consumption market.

Compared to other chains, in the first three months after the mainnet launch, Abstract's growth has surpassed that of ZKsync Era (a leading zk Ethereum scaling network), with its active address count and transaction volume nearing that of TON. Mature rollups like Base and Arbitrum provide Abstract with comparable EVM success cases, becoming targets for its pursuit.

Conclusion

Abstract team was the first to propose a consumer-centric model for building the crypto ecosystem, aimed at advancing Web3 into the mainstream. Their vision, known as "consumer-grade crypto," has been validated through the successful expansion of the Pudgy Penguins IP, and now, through the Abstract chain as a carrier, it further amplifies into a vibrant, continuously operating online hub.

For online destinations to succeed, they must leverage network effects, which requires continuously attracting new users, engaging creators, and serving developers. Abstract has laid a solid foundation for user growth and retention by leveraging the Pudgy fan community and native live streaming platforms in its initial stage.

To achieve exponential growth in the future, Abstract needs to discover true "killer applications," likely breaking through first in the fields of gaming and popular culture, while attracting traffic-oriented creators and global brands to access its platform.

At the same time, the track of crypto consumption is also heating up rapidly. TON and Kaia are backed by social media platforms, while Base and BNB have exchange support, and Sonenium is driven by institutions. These competitors are all joining the battle for mainstream adoption. Although "crypto applications in the mainstream market" still represent a blue ocean, these diverse attempts are inspiring each other, sparking innovation, and accelerating the entire industry’s march towards the mainstream.