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

Summary

• Abstract Chain will launch in January 2025 as a user-centric blockchain dedicated to promoting the widespread 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 an established fan base of Pudgy Penguins and $PENGU. Its unique user structure provides differentiated value.
• 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 daily user participation 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 currently achieved large-scale application: approximately 2 million wallet registered users, about 100,000 daily active wallets, and approximately 700,000 on-chain transactions per day, reflecting the platform's high level of activity.

Introduction

Abstract Chain was established in March 2024 and is a layer two 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 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 some distance to go before true mass adoption by mainstream users. Early projects like Arbitrum and Optimism have successfully addressed performance bottlenecks and attracted crypto-native users. However, to achieve what is referred to as "end-user Crypto", it is necessary to build a Web3 platform with a low barrier to entry and high user retention.

Early explorations such as TON and Kaia attempted to reduce user acquisition costs by integrating Web3 into mainstream social platforms like Telegram or LINE. This achieved some success, but this model, which relies on the openness of Web2 platform ecosystems, remains difficult to implement in mature markets like Europe and America.

Abstract Chain has chosen a different path: to promote the direct integration of cryptographic technology into applications aimed at end users, allowing users to use it directly without even realizing it.

The mainnet of Abstract will be launched in January 2025, along with the portal platform "Portal" as the gateway to the gaming and application ecosystem. Portal is not only a content showcase 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 begins 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 driven by the early 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. Using a business analogy, this approach is like getting customers to use a specific payment card that can only be used at certain stores.

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

• Basic Services: Provide tools such as wallets, fiat entry, token exchange, etc., enabling access to the ecosystem.
• User Interaction: Enhance user engagement through live broadcasts and the rewards 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 are continuously brought back through new content.

If we use a shopping mall as a metaphor, Abstract is like operating a thriving large shopping mall: integrating multiple stores together, continuously hosting performances on the central stage, maintaining high foot traffic and activity, and encouraging customers to return 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 Guide

The initial user base of Abstract largely relies on the association with 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 gives the chain a significant advantage in converting attention into actual users.

Simple entry 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 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 as simple as browsing the web or playing games. In addition, the chain employs ZK rollup technology, ensuring extremely low gas fees and high parallel processing capabilities, significantly reducing the cost of on-chain interactions.

After creating an account, users can immediately use all basic crypto tools through the Portal. The wallet in the top left corner supports real-time trading functions and offers recharge options, including bridging and fiat recharge services, to facilitate 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 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 across X(, Twitter), Instagram, and TikTok, and has over 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 stream stickers, and more. For $PENGU holders, the Portal has practical uses as well---they can use $PENGU tokens to tip during live streams, which is one of the use cases of $PENGU in Abstract.

The synergy between this IP and the platform's features has greatly boosted the growth of Portal---161,000 wallets were activated within 2 months after the mainnet launch.

Moreover, due to the wide fan distribution of Pudgy and $PENGU, Abstract's user profile is also different from other end-user-focused crypto ecosystems like TON and Kaia. Abstract attracts many users from developed markets—17.4% of which are from the United States, while the remaining users are primarily distributed across European and East Asian countries such as Germany, the United Kingdom, France, Japan, South Korea, Singapore, and Hong Kong, among others. This user base is highly valuable for end-user-focused 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 ###, 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 session time exceeding 7 minutes. Among Abstract Global Wallet ( AGW ) users, 40% returned at least once to transact within 30 days of wallet creation, a retention rate that is significantly higher than 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 globally each month. For Abstract, live streaming not only serves as a reason for users to return but also enhances platform stickiness and monetization potential. Live streaming has been proven to facilitate game and merchandise sales, which aligns 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, etc., allowing both streamers and viewers to earn tokens, rewards, or experience points ( XP ). Additionally, the "Follow" and "Recommend" features help to build a community atmosphere, promoting continuous user visits and social sharing.

By the end of April 2025, Portal has attracted over 1,000 streamers, with a total viewing time exceeding 500,000 hours. Some top streamers can even receive tips of up to 9 ETH in 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 each having more than 4,000 interactive users.

Reward 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 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 interactive live broadcasts, 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. 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, developing into a loyalty and reputation framework that covers the whole ecosystem, catering to both developers and users.

Application Discovery

Portal also serves as the "app store" for the Abstract ecosystem. The "Discover" section showcases outstanding 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 immediately without the cumbersome 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" end-user 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, with outstanding performance.