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

Summary

• Abstract Chain is a consumer-oriented blockchain set to launch in January 2025, dedicated to promoting the popularization of cryptocurrency technology and creating an accessible and participatory platform.
• Abstract Chain provides a seamless user experience through native account abstraction, leveraging the established Pudgy Penguins and PENGU fan communities to offer differentiated value through a 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 daily user participation time of over 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: the number of registered wallet users is approximately 2 million, with around 100,000 active wallets daily and an average of about 700,000 on-chain transactions per day, 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 employs an account abstraction mechanism, simplifying 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 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 referred to as "consumer-grade crypto," a Web3 platform with low entry barriers and high stickiness 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. Although some results have been achieved, this model, which relies on the ecosystem openness of Web2 platforms, remains difficult to implement in mature markets like Europe and the United States.

Abstract Chain has chosen a different path: directly embedding encryption technology into consumer applications, encouraging users to use it unconsciously.

The mainnet of Abstract will be launched in January 2025, along with the release of Portal, a gateway platform serving as an entrance to the gaming and application ecosystem. Portal is not just a content display window, but a highly interactive online destination that integrates live streaming, rewards, collectibles, and Spotlight( app recommendations), creating a sticky user experience. This strategy differentiates Abstract from other chains and becomes the core engine of growth.

The Business Flywheel of Abstract

The development of new chains usually starts with building a developer ecosystem, gradually increasing the on-chain locked value ( TVL ) by developing on-chain applications and introducing DeFi protocols. To attract users, projects incentivize participation through methods such as airdrops.

The network effects of this model mainly depend on the on-chain assets held by users. For example, Ethereum was initially dominated by the NFT craze, while Solana has recently gained popularity due to meme coins. These native assets bind users to the blockchain while attracting developers to build applications around the trends. From a business perspective, this approach is similar to allowing customers to use a specific payment card that can only be spent at certain stores.

Abstract Chain takes a different approach. Instead of focusing on asset accumulation, it has built 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 access to the ecosystem.
• User Interaction: The live broadcast and rewards center enhance user engagement.
• Project Discovery: The Spotlight section guides users to explore new content.

This system allows new users to quickly engage with Web3, while existing users are continuously drawn back by new content.

If we metaphorically compare it to a shopping mall, Abstract's operation is similar to a thriving large shopping center: integrating multiple stores in one place, continuously hosting performances on a central stage, maintaining high traffic and activity, allowing customers to return repeatedly to enjoy.

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

A. User Guide

Abstract's initial user base is highly dependent on its association with Pudgy Penguins IP and its extremely simple and user-friendly design concept. While fans of Pudgy and PENGU continue to flock to Abstract, its smooth onboarding experience gives the chain a significant advantage in converting interest into actual users.

Easy onboarding experience

Abstract Chain is committed to simplifying the user onboarding process by removing traditional barriers. With native account abstraction features, users can easily create an Abstract account and activate their 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 utilizes 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 use all basic crypto tools through the Portal. The wallet in the upper left corner supports real-time trading features, providing recharge options including bridging and fiat deposit services for quick fund transfers. The trading section of the Portal supports native token swaps without the need to search for third-party services. These integrated features together lower the entry barrier, 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 of Pudgy Penguins. Pudgy Penguins has over 3 million followers on X(, Twitter), Instagram, and TikTok, with more than 500,000 PENGU token holders, providing a ready user pool for the Abstract chain.

In Abstract's Portal, the image of Pudgy Penguins is everywhere, just like 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 the platform's features has greatly propelled the growth of Portal—within 2 months of the mainnet launch, 1.61 million wallets were activated.

More importantly, due to the wide distribution of Pudgy and PENGU fans, the user profile of Abstract is also different from other consumer-grade crypto ecosystems such as 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 in Europe and East Asian countries such as ( Germany, the United Kingdom, France, Japan, South Korea, Singapore, and Hong Kong, etc. This user group is very valuable for consumer-facing applications, providing a strong foundation for Abstract to build a high-quality consumer ecosystem.

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) B. Portal Platform

The portal platform of Abstract 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.

According to early data, 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 duration of over 7 minutes. Among Abstract global wallet ( AGW ) users, 40% returned to make at least one transaction within 30 days of creating their wallet, which is significantly higher than the industry average.

Live streaming feature

Live streaming is a media that is popular among young people globally. Web2 platforms like Twitch attract 240 million unique users monthly. For Abstract, live streaming is not only a reason for user return visits but also enhances the platform's stickiness and monetization capabilities. Live streaming has been proven to promote game and merchandise sales, which is highly consistent 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, and gifting, allowing both streamers and viewers to earn tokens, rewards, or experience points ( XP ). Additionally, 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 total watch hours exceeding 500,000. Some top streamers have received 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 between $4,000 and $5,000, and having over 4,000 interactive users.

Reward and Reputation System

Many crypto projects encourage early user participation through points mechanisms, but a truly complete loyalty and reputation system is still scarce in the on-chain ecosystem. Abstract uses XP and badge system (Badges) to build this infrastructure.

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

At the same time, through the badge feature, users can 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, the system is still in its early stages, with functionality limited to within the Portal. However, in the future, the XP and badge systems are expected to expand throughout the Abstract ecosystem, evolving into a comprehensive loyalty and reputation framework that encompasses both developers and users.

Application Discovery

Portal also serves as the "app store" for the Abstract ecosystem. In the "Discovery" section, it 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 immediately without a complicated registration process.

( C. Application Ecosystem

The ultimate success of any blockchain depends on whether it can cultivate a rich and diverse application ecosystem. For Abstract, its mission is to attract consumer-facing "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.