Abstract Chain Analysis: How to Build a Consumer-Friendly Public Chain Ecosystem?

TL;DR

• Abstract Chain is a consumer-oriented blockchain set to launch in January 2025, dedicated to promoting the popularization of cryptography and building an accessible and highly participatory platform.
• Abstract Chain provides a seamless user experience through native account abstraction and leverages the established Pudgy Penguins and PENGU fan communities to offer differentiated value with a unique user base.
• 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 of over 7 minutes and a 30-day retention rate of 40%. The live streaming feature has become one of its main competitive advantages.
• Abstract Chain has currently achieved large-scale application: the number of registered wallet users is about 2 million, daily active wallets are about 100,000, and the average daily on-chain transactions are about 700,000, reflecting the high activity level of the platform.

Introduction

Abstract Chain is a Layer 2 blockchain based on Ethereum, established in March 2024, 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 that simplifies 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, ensuring scalability and security for consumer applications.

Despite the fierce competition in the blockchain ecosystem, 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 the so-called "consumer-grade cryptocurrency," a Web3 platform with low entry barriers and high stickiness still needs to be built.

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 success, but relying on the open model of these Web2 platform ecosystems remains difficult to implement in mature markets like Europe and the United States.

Abstract Chain has chosen a different path: directly embedding cryptographic technology into consumer applications to encourage users to use it directly without being aware.

The mainnet of Abstract will go live in January 2025, along with the launch of the Portal platform, which serves as an entry point for games and application ecosystems. The Portal is not just a content showcase; it is a highly interactive online destination that integrates live streaming, rewards, collectibles, and Spotlight( app recommendations), creating a sticky user experience. This strategy sets Abstract apart from other chains and positions it as a core engine for growth.

Abstract's Business Flywheel

The development of new chains typically 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 encourage participation through methods such as airdrops.

The network effects of this model 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 attracting developers to build applications around the trends. From a business analogy, this approach is similar to having customers use a specific payment card that can only be used at certain stores.

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

• Basic services: Provide tools such as wallets, fiat entry, token exchange, etc., empowering the ability to enter the ecosystem.
• User Interaction: Live streaming and reward center enhance user engagement.
• Project Discovery: The Spotlight section guides users to explore new content.

This system allows new users to quickly access Web3, while existing users are continuously attracted back by new content.

Metaphorically likened to a shopping mall, Abstract is similar to running a thriving large shopping center: integrating multiple stores together, continuously holding performances on a central stage, maintaining high foot traffic and activity, allowing customers to continuously return for enjoyment.

The following analysis revolves around three core growth areas: user acquisition >> portal integration >> application ecosystem driving. Together, they form the core components of the Abstract platform's business flywheel.

A. User Guide

The initial user base of Abstract largely relies on its association with the Pudgy Penguins IP and its extremely user-friendly design concept. While fans of Pudgy and PENGU continue to flock to Abstract, its smooth onboarding experience gives the chain a distinct advantage in converting interest into actual users.

Easy entry experience

Abstract Chain is committed to simplifying the user onboarding process and eliminating traditional barriers. With the native account abstraction feature, users can easily create an Abstract account and activate 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. Additionally, the chain adopts zero-knowledge rollup technology, ensuring extremely low gas fees and high parallel processing capabilities, significantly reducing the cost of on-chain interactions.

After users create an account, they can immediately access all basic crypto tools through the Portal. The wallet in the upper left corner supports real-time trading functions and offers deposit options including bridging and fiat currency deposit services for quick fund inflow. The trading section of the Portal supports native token exchanges without the need to search for third-party services. These integrated features collectively 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 of Pudgy Penguins. Pudgy Penguins has over 3 million followers on X(, Twitter), Instagram, and TikTok, along with more than 500,000 PENGU token holders, providing a ready-made user pool for Abstract chain.

In the Abstract Portal, the image of Pudgy Penguins is as omnipresent as 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 the platform's functions has greatly driven the growth of Portal—activating 1.61 million wallets within 2 months after the mainnet launch.

Moreover, due to the widespread distribution of Pudgy and PENGU fans, 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 in developed markets—17.4% of whom are from the United States, while the remaining users are mainly distributed across European and East Asian countries such as Germany, the United Kingdom, France, Japan, South Korea, Singapore, and Hong Kong. This user base is highly valuable for consumer-oriented 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###. 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.

Preliminary 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. 40% of Abstract global wallet ( AGW ) users return to make at least one transaction within 30 days of creating their wallet, a retention rate that is significantly higher than the industry average.

Live streaming feature

Live streaming is a media format 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 users to return but also enhances platform engagement and profitability 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 in the abstract encourages user participation through rewards, comments, gifts, etc. Both hosts and viewers can earn tokens, rewards, or experience points (XP). Additionally, 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 time exceeding 500,000 hours. Some top streamers have received tips as high as 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 having 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 is still scarce in on-chain ecosystems. Abstract uses the XP and badge system (Badges) to build this infrastructure.

Abstract uses off-chain XP as the main incentive tool to encourage participants who meet the target behavior. Content creators can earn XP through live interaction, developers can earn XP by completing user activity tasks, and ordinary users can earn XP by connecting social accounts or using recommended applications.

At the same time, the badge feature allows users to showcase their achievements. Different types of badges will be issued 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 its early stages, with functionality limited to the Portal. However, it is expected that the XP and badge system will expand to the entire Abstract ecosystem in the future, evolving into a comprehensive loyalty and reputation framework covering both developers and users.

Application Discovery

Portal also serves as the "app store" for the Abstract ecosystem. In the "Discover" section, high-quality applications voted by users are showcased, 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 a complicated 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 consumer-oriented "fun" applications from Web3 projects and mainstream institutions.

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 a monthly subsidy. Developers can earn XP rewards monthly based on user participation, and outstanding projects.