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

Summary

• Abstract Chain will launch in January 2025 as a user-centric blockchain dedicated to promoting the large-scale application of cryptographic technology, building a platform that is easy to access and offers a strong sense of participation.
• Abstract Chain provides differentiated value through its unique user structure, leveraging the smooth user experience brought by native account abstraction and the established fan base of Pudgy Penguins and $PENGU.
• Abstract's growth strategy revolves around creating a digital entertainment theme park: it has its own portal platform, integrates live streaming and reward systems, and attracts 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 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, about 100,000 daily active wallets, and approximately 700,000 on-chain transactions per day, reflecting high platform 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 a seamless and differentiated Web3 experience for mainstream end users. This chain adopts an account abstraction mechanism to simplify wallet setup and on-chain signing processes, lowering the entry threshold. Through zk-rollup technology, Abstract offers 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 true large-scale mainstream user adoption. Early projects like Arbitrum and Optimism have successfully addressed performance bottlenecks and attracted crypto-native users. However, to achieve what's called "Crypto for end users," it is necessary to build a low-threshold and highly engaging Web3 platform.

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 has 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: directly embedding cryptographic technology into applications aimed at end users, allowing users to use it seamlessly without awareness.

The mainnet of Abstract will launch 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 sections such as live streaming, rewards, collectibles, and Spotlight( app recommendations), creating a sticky user experience. This strategy sets Abstract apart from other chains, making it the core engine of its growth.

The Flywheel Effect of Abstract

The development of a new chain usually begins with building a developer ecosystem, introducing on-chain application development and DeFi protocols, gradually increasing on-chain locked value ( TVL ). 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 example, Ethereum was initially driven by the NFT craze, while Solana recently gained popularity due to meme coins. These native assets bind users to the blockchain, while also encouraging developers to build applications around trends. In business terms, this approach is akin 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 focusing on asset accumulation, it has built the portal platform (Portal) as a dynamic online hub, designed around the following three main functions:

• Basic services: Provides tools such as wallets, fiat entry, token exchange, etc., offering ecological access capabilities.
• User Interaction: Enhance user engagement through live broadcasts and the rewards center.
• Project Discovery: The Spotlight section guides users to explore new content.

This system enables new users to quickly enter Web3, while existing users are continuously recalled through new content.

If compared to a shopping mall, Abstract is similar to a thriving large shopping center: integrating multiple stores in one place, the central stage continuously hosts performances, maintaining high foot traffic and activity, encouraging customers to return for enjoyment.

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

A. User Guide

Abstract's initial user base is highly dependent on the association with 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 this chain a significant advantage in converting attention into actual users.

Easy to use experience

Abstract Chain is committed to eliminating traditional barriers and simplifying the user onboarding process. Its native account abstraction feature allows users to easily create Abstract accounts and activate wallets 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 like browsing the web or playing games. Moreover, this chain employs ZK rollup technology, ensuring extremely low gas fees and high parallel processing capabilities, significantly reducing on-chain interaction costs.

After the user creates an account, they can immediately use all 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 recharge 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 usage threshold, 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 fans on X(, Twitter), Instagram, and TikTok, with over 500,000 holders of the $PENGU token, providing a ready user pool for the Abstract chain.

In the Abstract Portal, the image of Pudgy Penguins is as ubiquitous as 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 of $PENGU on Abstract.

The synergy between this IP and the platform's functions has greatly facilitated the growth of Portal—1.61 million wallets were activated within two months after the mainnet launch.

More importantly, due to the widespread distribution of Pudgy and $PENGU fans, Abstract's user profile is also different from other end-user-facing crypto ecosystems like TON and Kaia. Abstract attracts a large number of users from developed markets—17.4% of which are from the United States, while the remaining users are mainly distributed in European and East Asian countries such as ( Germany, the United Kingdom, France, Japan, South Korea, Singapore, and Hong Kong ). This user group is extremely valuable for end-user-oriented applications, providing a strong foundation for Abstract to build a high-quality consumption ecosystem.

B. Portal Platform

The Abstract portal platform is called "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 an average daily user stay time of over 7 minutes. Among Abstract Global Wallet )AGW( users, 40% returned to trade at least once within 30 days of creating their wallets, a retention rate significantly higher than the industry average.

Live streaming feature

Live streaming is a medium 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 user return visits 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 "Stream-to-Earn)" model introduced by Abstract encourages user participation through tipping, commenting, gifting, and other methods, allowing both streamers and viewers to earn tokens, rewards, or experience points(XP). Additionally, the "follow" and "recommend" features help build a community atmosphere and promote user retention and social sharing.

As of the end of April 2025, Portal has gathered more than 1,000 streamers, with total viewing hours exceeding 500,000. Some top streamers can earn up to 9 ETH in tips during 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.

Rewards and Reputation System

Many crypto projects encourage early user participation through point mechanisms, but a truly complete loyalty and reputation system in on-chain ecosystems is still rare. Abstract builds such infrastructure using the XP and badge system (Badges).

Abstract uses off-chain XP as the primary 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 like 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 based on behavior and task levels, becoming part of the user's identity and gradually forming a complete reputation system.

Currently, this system is still in the 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 serves as the "app store" for the Abstract ecosystem. The "Discovery" section showcases excellent 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 start experiencing without the 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" applications aimed at end users from Web3 projects and mainstream enterprises.

Web3 project

Abstract is fully compatible with EVM) Ethereum Virtual Machine### and also supports the migration of existing Ethereum smart contracts, facilitating cross-chain deployment. The platform has launched the "Builder-in-Residence Program"( to provide developers with market support, technical guidance, and monthly stipends. Developers can earn XP rewards monthly 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 applications in Abstract, 8 are occupied by gaming products. Popular games include "Pudgy World", "