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

TL;DR

• Abstract Chain is a consumer-oriented blockchain launched in January 2025, dedicated to promoting the popularization of encryption technology and creating a platform with excellent usability and engagement.
• Abstract Chain provides a seamless user experience through native account abstraction and leverages the established advantages of the 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 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 its main competitive advantages.
• Abstract Chain has currently achieved large-scale application: the number of registered wallet users is approximately 2 million, daily active wallets are about 100,000, and the average daily on-chain transactions are around 700,000, reflecting a high level of platform activity.

Introduction

Abstract Chain is an Ethereum-based Layer 2 blockchain 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, 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.

Although the blockchain ecosystem is highly competitive, there is still a distance to go for true mainstream user adoption at scale. Early projects like Arbitrum and Optimism have successfully addressed performance bottlenecks, attracting crypto-native users. However, achieving what is referred to as "consumer-grade crypto" requires building a Web3 platform with low barriers to entry and high user retention.

Early explorations like TON and Kaia attempted to reduce user acquisition costs by integrating Web3 into mainstream social platforms like Telegram and LINE. Although some results were achieved, this model, which relies on the openness of Web2 platform ecosystems, is still difficult to realize in mature markets like Europe and America.

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

The mainnet of Abstract will go live in January 2025, simultaneously launching Portal, a gateway platform serving 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( app 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 begins 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 encourage participation through methods such as airdrops.

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

Abstract Chain adopts a different approach. Rather than focusing on asset accumulation, it builds the portal platform (Portal) as an active online hub designed around the following three main functions:

• Basic Services: Provides tools such as wallets, fiat on-ramps, and token swaps, empowering access to 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 engage with Web3, while existing users are continuously drawn back by new content.

If compared to a shopping mall, Abstract is similar to managing a thriving large shopping center: integrating multiple stores in one place, continuously hosting performances on a central stage, maintaining high foot traffic and activity, and encouraging customers to keep coming back to enjoy.

The following analysis revolves around three core growth areas: user acquisition >> portal hosting >> application ecosystem driving. These together constitute the key components of the Abstract platform's business flywheel.

A. User Guide

The initial user base of Abstract largely relies on its association with Pudgy Penguins IP and its extremely user-friendly design concept. Fans of Pudgy and PENGU continue to flock to Abstract, but its smooth onboarding experience gives the chain a clear 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 and do not need to 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 concurrency processing capabilities, significantly reducing the cost of on-chain interactions.

Once 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 functions and provides deposit options including cross-chain and fiat currency services, enabling quick fund transfers. 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 usage threshold, allowing users to access the on-chain world without barriers.

Using Pudgy fans as the initial user base

Abstract utilizes the large and active fan community of Pudgy Penguins. Pudgy Penguins has over 3 million fans 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, much 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 functions has greatly driven the growth of Portal—1.61 million wallets were activated within 2 months after the mainnet launch.

Moreover, due to the widespread distribution of fans for Pudgy and PENGU, 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 base is very valuable for consumer-facing applications and provides a strong foundation for Abstract to build a high-quality consumer ecosystem.

( B. Portal Platform

The portal platform of Abstract is referred to as "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 user stay time of over 7 minutes per day. Among global wallet ) AGW ( users, 40% returned to conduct at least one transaction within 30 days of wallet creation, a retention rate 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 user return visits, but also enhances the platform's stickiness and monetization potential. Live streaming has been proven to boost game and merchandise sales, aligning closely with Abstract's goal of building an entertainment ecosystem.

The "Watch-to-Earn" ) Stream-to-Earn ( model introduced in the abstract encourages users to participate through tips, comments, and gifts, 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.

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 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 more than 4,000 interactive users.

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Reward and Reputation System

Many crypto projects encourage early user participation through point systems, but a truly complete loyalty and reputation system in the on-chain ecosystem is still scarce. 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 the 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, 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 within the Portal. However, it is expected that in the future, the XP and badge system will 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. The "Discover" section showcases high-quality applications selected by user votes, categorized into: digital collectibles, games, NFTs, social, AI, trading, prediction markets, and more. Users can log into 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 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 subsidies. Developers can earn monthly XP rewards 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 applications.

Games are an important entry point for bringing Web2 users into the Web3 world. Among the top 10 most popular applications on Abstract, 8 are gaming products. Popular games include Pudgy World, BigCoin, Bitcoin mining games, and adventure.