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-centered blockchain dedicated to promoting the large-scale adoption of cryptographic technology and building an easily accessible and engaging platform.
• Abstract Chain offers a great user experience brought by 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 into the ecosystem.
• This live streaming platform has attracted over 10,000 broadcasters, with an average user participation duration of over 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 applications: the number of registered wallet users is about 2 million, daily active wallets are about 100,000, and daily on-chain transactions are about 700,000, 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, aiming to provide seamless and differentiated Web3 experiences for mainstream end users. The chain employs an account abstraction mechanism that simplifies 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 a distance to true large-scale mainstream user adoption. 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 build a Web3 platform that combines low barriers to entry with high user retention.

Early explorations like TON and Kaia have attempted to reduce user acquisition costs by integrating Web3 into mainstream social platforms like Telegram or 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 such as Europe and the United States.

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 seamlessly.

The mainnet of Abstract will launch in January 2025, along with a portal platform called "Portal" serving as an entry point for the gaming and application ecosystem. Portal is not only a content showcase but also a highly interactive online destination that integrates live broadcasts, rewards, collectibles, Spotlight( application recommendations), and other sections to create a sticky user experience. This strategy differentiates Abstract from other chains and becomes the core engine of its growth.

Abstract's flywheel

The development of new chains usually starts with building 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, 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 has recently gained popularity due to meme coins. These native assets bind users to the chain, while also encouraging developers to build applications around the trends. To use a business analogy, this practice is akin to getting customers to use a specific payment card and only being able to spend it at certain stores.

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

• Basic services: provide tools such as wallets, fiat gateways, token swaps, etc., enabling access to the ecosystem.
• User Interaction: Enhance user engagement through live broadcasts and the rewards center
• Project Discovery: Guide users to explore new content through the Spotlight section.

This system allows new users to quickly enter Web3, while existing users continuously return due to new content.

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

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

A. User Guide

The early user base of Abstract largely relied on its association with the Pudgy Penguins IP, as well as 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.

Easy 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 create Abstract accounts and enable wallets as easily as registering for a regular website account. Users do not need to manage private keys or frequently sign transactions. Account recovery or transfer operations are 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 upper left corner supports real-time transaction features and provides funding options including bridging and fiat deposit services for convenient and quick funding. The trading section of the Portal supports native coin swaps without the need to search for third-party services. These integrated features together lower the barriers to use, 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 a total of 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 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 for $PENGU on Abstract.

The synergy between this IP and platform functionalities has greatly promoted the growth of Portal—within 2 months after the mainnet launch, 1.61 million wallets were activated.

More importantly, due to the wide distribution of Pudgy and $PENGU fans, Abstract's user profile is different from other end-user-focused crypto ecosystems like TON and Kaia. Abstract attracts 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 Europe 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 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 users spending an average of over 7 minutes per day. Among users of the Abstract Global Wallet ( AGW ), 40% revisit at least once to conduct transactions within 30 days of creating their wallet, which is significantly higher than the industry average retention rate.

Live Streaming Feature

Live streaming is a medium that is highly favored by young people around the world. 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 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 ). 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 duration exceeding 500,000 hours. Some top streamers can earn up to 9 ETH in tips per live stream. The top 100 streamers account for a significant share of the platform's tip revenue, with individual monthly incomes ranging from $4,000 to $5,000, and over 4,000 interactive users.

Reward and Reputation System

Many crypto projects encourage early user participation through point systems, 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 the target behavior. 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 based on behavior and task levels, becoming part of the user's identity and gradually forming a complete reputation system.

Currently, the 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 and targets developers and users.

Application Discovery

Portal also serves as the "app store" of 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 start experiencing without 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" applications aimed at end users 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 allowances. Developers can earn XP rewards monthly based on user participation, 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 the applications.

Games are an important entry point for bringing Web2 users into the Web3 world. Abstract ranks in the top 10.