Abstract Chain Panorama Analysis: How to Build a Public Chain Ecosystem for End Users?

Overview

• Abstract Chain will be launched in January 2025 as a user-centric blockchain dedicated to promoting the widespread adoption of encryption technology and building an accessible and engaging platform.
• Abstract Chain offers a comfortable user experience brought by native account abstraction, leveraging the established fan base of Pudgy Penguins and $PENGU to provide differentiated value through its unique user composition.
• 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: approximately 2 million registered wallet users, around 100,000 daily active wallets, and an average of about 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, employing zero-knowledge proof (zk) technology, dedicated to providing mainstream end-users with a seamless and differentiated Web3 experience. The chain utilizes an account abstraction mechanism, simplifying wallet setup and on-chain signing processes, thereby lowering the entry barrier. Through zk-rollup technology, Abstract is able to offer low-cost, high-throughput on-chain transaction capabilities, providing scalability and security assurances for applications aimed at end users.

The competition in the blockchain ecosystem is fierce, but there is still some distance to go before achieving true mass mainstream user adoption. Early projects like Arbitrum and Optimism have successfully addressed performance bottlenecks and attracted crypto-native users. However, to realize what is called "Crypto for End-users"(Crypto for End-users), it is necessary to build a Web3 platform that offers both low barriers to entry and high user retention.

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

Abstract Chain has chosen a different path: to promote the direct integration of cryptocurrency technology into applications aimed at end users, allowing users to use it seamlessly.

The mainnet of Abstract will be launched in January 2025, along with the portal platform "Portal" as an entry point for the gaming and application ecosystem. Portal is not only a content showcase but also a highly interactive online destination, integrating sections such as live streaming, rewards, collectibles, Spotlight( app recommendations), creating a sticky user experience. This strategy distinguishes Abstract from other chains and serves as the core engine for its growth.

Abstract's Flywheel

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

The network effects of these models mainly rely on the on-chain assets held by users. For example, Ethereum was early driven by the NFT craze, while Solana recently gained popularity due to meme coins. These native assets bind users to the chain while encouraging developers to build applications around trends. From a business perspective, this approach is similar to making customers use a specific payment card, which can only be spent at certain stores.

Abstract Chain takes 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: Provide tools such as wallets, fiat entry, token exchange, etc., to enable access to the ecosystem.
• User Interaction: Enhance user engagement through live streaming 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 continue to return for new content.

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

The following analysis will focus on three key growth areas: user traffic >> portal adoption >> application ecosystem drive. Together, these constitute the core components of the Abstract platform's business flywheel.

A. User Guide

Abstract's initial user base largely relies on the relevance of 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 seamless onboarding experience gives the chain a significant advantage in converting attention into actual users.

Simple 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 the 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 feel as simple as browsing the web or playing games. In addition, 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 creating an account, users 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 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 barriers 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 owned by Pudgy Penguins. Pudgy Penguins has over 3 million fans on X(, Twitter), Instagram, and TikTok, with over 500,000 $PENGU token holders, providing a ready-made user pool for the Abstract chain.

In the Abstract Portal, the image of Pudgy Penguins is as ubiquitous as Mickey Mouse at Disneyland: appearing in marketing banners, user avatars, live-stream stickers, and more. For $PENGU holders, the Portal also has practical uses— they can tip during live streams using $PENGU tokens, which is one of the use cases for $PENGU on Abstract.

The synergy between this IP and the platform's functions has 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, Abstract's user profile is different from other crypto ecosystems aimed at end-users, such as TON and Kaia. Abstract attracts many users from developed markets—17.4% of whom are from the United States, while the remaining users are primarily distributed across European and East Asian countries like ( Germany, the UK, France, Japan, South Korea, Singapore, Hong Kong, etc. ). This user group is extremely valuable for applications aimed at end-users, 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), 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 quite 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 more than 7 minutes per day. Among users of Abstract Global Wallet ( AGW ), 40% of users revisit at least once for transactions within 30 days of wallet creation, which is far higher than the industry average retention rate.

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 platform stickiness and monetization potential. Live streaming has been proven to promote game and merchandise sales, aligning closely with Abstract's goal of building an entertainment ecosystem.

The "Watch and Earn" ( Stream-to-Earn ) model introduced by Abstract encourages user participation through tips, comments, gifts, etc., 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 a total viewing time exceeding 500,000 hours. Some top streamers can even receive tips of up to 9 ETH per live broadcast. The top 100 streamers account for a significant portion of the platform's tip revenue, with personal 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 in on-chain ecosystems is still rare. Abstract uses XP and badge system (Badges) to build such infrastructure.

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

At the same time, the badge feature allows users to showcase their achievements. Depending on the level of behavior and tasks, different types of badges will be minted as on-chain NFTs or displayed within the app, 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 loyalty and reputation framework that covers the whole ecosystem and is aimed at developers and users.

Application Discovery

Portal also serves as the "app store" for the Abstract ecosystem. The "Discover" section showcases outstanding 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, enabling them to start experiencing immediately 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 the applications.

Games are an important entry point for bringing Web2 users into the Web3 world. Among the top 10 applications ranked by Abstract, 8 are occupied by gaming products. Popular games include "Pudgy World", "Bigcoin", "BTC Mining Game", and adventure titles such as "