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

Summary

• Abstract Chain is a consumer-oriented blockchain launched in January 2025, dedicated to promoting the mainstream adoption of cryptographic technology and building a platform that is easy to access and participate in.
• Abstract Chain provides a seamless user experience through local account abstraction and leverages the established Pudgy Penguins and PENGU fan community to offer unique differentiated value in user structure.
• Abstract's growth strategy revolves around building a digital entertainment theme park: having its own portal platform, integrating live streaming and rewards systems, and attracting application developers into the ecosystem.
• This live streaming platform has attracted over 10,000 broadcasters, with an average user participation time of over 7 minutes per day, 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: approximately 2 million registered wallet users, about 100,000 daily active wallets, and an average of 700,000 on-chain transactions per day, reflecting the platform's high activity level.

Introduction

Abstract Chain is a Layer 2 blockchain based on Ethereum, established in March 2024, which utilizes zero-knowledge encryption ( zk ) technology, aiming to provide mainstream consumers 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 consumer applications.

Despite the intense competition in the blockchain ecosystem, there is still a distance to go for true mass mainstream user adoption. Early projects like Arbitrum and Optimism have successfully addressed performance bottlenecks and attracted crypto-native users. However, to achieve what is known as "consumer-grade crypto," it is still necessary to build a Web3 platform with low entry barriers and high user stickiness.

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 progress has been made, this model relying on the openness of Web2 platform ecosystems is still difficult to achieve in mature markets like Europe and the United States.

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

The mainnet of Abstract will be launched in January 2025, along with the portal platform Portal, which serves as an entry point for games and application ecosystems. Portal is not just a simple content display window; it is a highly interactive online destination that integrates live streaming, rewards, collectibles, and Spotlight( application recommendations), creating a sticky user experience. This strategy differentiates Abstract from other chains and becomes the core engine for growth.

Abstract's business flywheel

The development of a new chain 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 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 dominated by the NFT craze, while Solana has recently gained popularity due to meme coins. These native assets lock users on-chain while also guiding developers to build applications around trends. From a business analogy perspective, this approach is similar to having customers use a specific payment card that can only be used for purchases in certain stores.

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

• Basic Services: Providing tools such as wallets, fiat entry, and token exchange, empowering the ability to access 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 continually attracted back by new content.

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

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

A. User Guide

The early user base of Abstract largely relies on its association with the Pudgy Penguins IP and an extremely simple and user-friendly design concept. Although 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 eliminating traditional barriers. With the native account abstraction feature, 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. In addition, the chain employs 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 functionality and offers deposit options, including cross-chain bridges and fiat recharge services, for quick fund deposits. 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 barrier 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 of Pudgy Penguins. Pudgy Penguins has over 3 million followers on X( Twitter), Instagram, and TikTok, as well as over 500,000 PENGU token holders, providing an existing user pool for the Abstract chain.

In the Abstract 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 platform functionalities 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 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, with the remaining users primarily located in European and East Asian countries such as ( Germany, the United Kingdom, France, Japan, South Korea, Singapore, and Hong Kong ). This user group is very 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 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 user session duration of over 7 minutes. Among the Abstract Global Wallet ) AGW ( users, 40% returned at least once to make a transaction within 30 days of creating their wallet, a retention rate 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 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 facilitate 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 methods such as tipping, commenting, 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 viewing time exceeding 500,000 hours. 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 from $4,000 to $5,000, and having over 4,000 interactive users.

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Reward and Reputation System

Many crypto projects encourage early user participation through point mechanisms, but a truly complete loyalty and reputation system on-chain is still scarce. 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 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, this system is still in its 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 comprehensive loyalty and reputation framework that covers both developers and users.

Application Discovery

Portal also serves as the "app store" for the Abstract ecosystem. In the "Discover" 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.

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) 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" consumer-facing applications from Web3 projects and mainstream institutions.

Web3 project

Abstract and EVM### Ethereum Virtual