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-centric blockchain, dedicated to promoting the large-scale adoption of crypto technology and building a low-threshold, participatory platform.
• Abstract Chain offers a good user experience brought by native account abstraction, while 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: having 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 users participating for an average of more than 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 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 level of activity.

Introduction

Abstract Chain was established in March 2024 and is a Layer 2 blockchain based on Ethereum that employs zero-knowledge proof (zk) technology, aiming to provide a seamless and differentiated Web3 experience for mainstream end users. 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 offers low-cost, high-throughput on-chain transaction capabilities, providing scalability and security guarantees for applications aimed at end users.

The competition in the blockchain ecosystem is fierce, but there is still a distance to true widespread adoption by mainstream users. Early projects like Arbitrum and Optimism have successfully addressed performance bottlenecks, attracting crypto-native users. However, to achieve what is called "end-user Crypto," it is necessary to build a Web3 platform that combines low barriers to entry with high user engagement.

Early explorations such as TON and Kaia attempted to reduce user acquisition costs by integrating Web3 into mainstream social platforms like Telegram and LINE. This has achieved some results, but this model relying on the ecological openness of Web2 platforms is still difficult to implement in mature markets like Europe and the United States.

Abstract Chain has chosen a different path: promoting 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 the portal platform "Portal" as the entry point for the game and application ecosystem. Portal is not only a content display window but also a highly interactive online destination, integrating live streaming, 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.

The Flywheel Effect of Abstract

The development of new chains usually starts with building a developer ecosystem, gradually increasing the on-chain locked value ( TVL ) through the introduction of on-chain application development and DeFi protocols. To attract users, projects often incentivize 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 boom, 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 trends. Using a business analogy, this approach is akin to having customers use a specific payment card that can only be spent at designated stores.

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

• Basic Services: Provides 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 revisit due to new content.

If we metaphorically compare it to a shopping mall, Abstract is similar to a thriving large shopping center: integrating multiple stores into one place, with a central stage continuously hosting performances, maintaining high foot traffic and activity, encouraging customers to keep coming back for enjoyment.

The following analysis focuses on three key growth areas: user traffic >> portal support >> application ecosystem drive. Together, these 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 its extremely simple and user-friendly design concept. Fans of Pudgy and $PENGU continue to flock to Abstract, but its smooth onboarding experience gives the chain a significant advantage in converting attention into actual users.

Easy onboarding experience

Abstract Chain is committed to eliminating traditional barriers and simplifying the onboarding process for users. Its native account abstraction feature allows users to easily create an Abstract account and enable their wallet just like 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. Additionally, 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 users create an account, they can immediately use all basic cryptocurrency tools through the Portal. The wallet in the upper left corner supports real-time trading functions and provides recharge options including cross-chain bridges and fiat deposit services, enabling fast fund deposits. The trading area of the Portal supports native coin 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, 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 the platform's functions greatly promoted the growth of Portal—1.61 million wallets were activated within 2 months after the mainnet launch.

Moreover, due to the widespread distribution of Pudgy and $PENGU fans, the user profile of Abstract is different from other consumer-facing crypto ecosystems like TON and Kaia. Abstract has attracted many users from 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 UK, France, Japan, South Korea, Singapore, and Hong Kong ). This user base is highly valuable for consumer-facing applications, providing a strong foundation for Abstract to build a high-quality consumer ecosystem.

B. Portal Platform

The Abstract portal platform is known as "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 outstanding. 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 Abstract global wallet ( AGW ) users, 40% returned to trade at least once within 30 days of wallet creation, a retention rate that is far above the industry average.

Live broadcasting feature

Live streaming is a media form favored by young people worldwide. Web2 platforms like Twitch attract 240 million unique users globally each month. For Abstract, live streaming not only serves as a reason for user return visits but also enhances platform stickiness and profit potential. Live streaming has been proven to boost game and merchandise sales, aligning perfectly with Abstract's goal of building an entertainment ecosystem.

The "Watch-to-Earn" ( Stream-to-Earn ) model introduced in the abstract encourages user participation through rewards, comments, and gifts, 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 engagement and social sharing.

As of the end of April 2025, Portal has gathered over 1,000 streamers, with a total watch time exceeding 500,000 hours. Some top streamers can even receive tips of up to 9 ETH per live stream. 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 mechanisms, but a truly complete loyalty and reputation system in the on-chain ecosystem is still rare. Abstract uses the XP and badge system (Badges) to build such infrastructure.

Abstract uses off-chain XP as the primary incentive tool to reward 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 by linking social accounts, using recommended applications, and other behaviors.

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, depending 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, developing into a loyalty and reputation framework that covers the whole ecosystem and is applicable to 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 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 the ability to 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 stipends. Developers can earn XP rewards based on user engagement each month, 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 the key to bringing Web2 users into the Web3 world.