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

Overview

• Abstract Chain will be launched in January 2025 as a user-centric blockchain dedicated to promoting the large-scale adoption of cryptographic technology and building an accessible and engaging platform.
• Abstract Chain offers a good user experience brought by native account abstraction, leveraging the advantages of established Pudgy Penguins and $PENGU fan communities to provide differentiated value through its unique user composition.
• Abstract's growth strategy revolves around building a digital entertainment theme park: owning its own portal platform, integrating live streaming and rewards systems, and attracting application developers into the ecosystem.
• This live streaming platform has attracted over 10,000 streamers, with users averaging more than 7 minutes of participation 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 high activity level of the platform.

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, thereby lowering the entry barrier. Through zk-rollup technology, Abstract provides 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 distance to go before true mass mainstream user adoption. Early projects like Arbitrum and Optimism have successfully addressed performance bottlenecks, attracting crypto-native users. However, to achieve what is termed "crypto for end users," a Web3 platform that combines low barriers to entry with high user engagement needs to be built.

Early explorations like TON and Kaia tried to reduce user acquisition costs by integrating Web3 into mainstream social platforms like Telegram and LINE. This has been somewhat successful, but this model, which relies on the openness of Web2 platform ecosystems, remains difficult to achieve in mature markets such as Europe and America.

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

The mainnet of Abstract will be launched 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, integrating live broadcasts, rewards, collectibles, Spotlight( app recommendations), and other sections to create 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 a new chain 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 encouraging developers to build applications around trends. In business terms, this approach is like getting customers to use a specific payment card and only allowing them to spend it at certain stores.

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

• Basic Services: Provide tools such as wallets, fiat currency entry, token exchange, etc., to enable access to the ecosystem.
• User Interaction: Enhance user engagement through live streaming and reward center
• Project Discovery: Guiding users to explore new content through the Spotlight section.

This system enables new users to quickly enter Web3, while existing users continually return for new content.

If compared to a shopping mall, Abstract is like managing a thriving large shopping center: integrating multiple stores in one place, continuously hosting performances on the central stage, maintaining high traffic and activity, allowing customers to return repeatedly to enjoy.

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

A. User Guidance

The initial user base of Abstract largely relies on the relevance of the Pudgy Penguins IP and its extremely simple and user-friendly design philosophy. Fans of Pudgy and $PENGU continue to flow into Abstract, but its smooth onboarding experience shows a significant advantage in converting attention into actual users.

Easy introductory 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 enable 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 easy as browsing the web or playing games. Additionally, the chain employs ZK rollup technology, ensuring extremely low gas fees and high concurrent processing capabilities, significantly reducing the cost of on-chain interactions.

After users create an account, they can immediately use all the basic crypto tools through the Portal. The wallet in the upper left corner supports real-time trading features and offers deposit options including bridging and fiat deposit 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 barriers to entry, allowing users to access the on-chain world seamlessly.

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, with 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 omnipresent, much like 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 has greatly promoted the growth of Portal—1.61 million wallets were activated within 2 months after the mainnet launch.

Moreover, due to the widespread fan distribution of Pudgy and $PENGU, Abstract's user profile also differs from other end-user facing 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, 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 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'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 averaging over 7 minutes of daily engagement. Among Abstract Global Wallet ( AGW ) users, 40% return to make at least one transaction within 30 days of creating their wallet, a retention rate that far exceeds the industry average.

Live streaming feature

Live streaming is a media format favored by young people worldwide. 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 boost game and merchandise sales, aligning perfectly with Abstract's goal of building an entertainment ecosystem.

The "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 engagement 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 up to 9 ETH in tips during a single live stream. The top 100 streamers account for a significant portion of the platform's tip income, with individual monthly earnings between $4,000 and $5,000, and having over 4,000 interactive users.

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Reward and Reputation System

Many crypto projects encourage early user participation through point systems, 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 interactions, developers can earn XP by completing user engagement 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 app according to behavior and task levels, 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 developers and users.

Application Discovery

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

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 stipends. Developers can earn XP rewards based on user engagement each month, and outstanding projects have the opportunity to receive additional incentives.