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

TL;DR

• Abstract Chain is a consumer-oriented blockchain launched in January 2025, dedicated to promoting the mainstream adoption of cryptographic technology and creating an easy-to-use and engaging platform.
• Abstract Chain provides a smooth user experience through native account abstraction and leverages the advantages of the established Pudgy Penguins and PENGU fan communities to offer differentiated value with 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 its ecosystem.
• This live streaming platform has attracted over 10,000 broadcasters, with an average daily user participation duration exceeding 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 applications: 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 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 seamless and differentiated Web3 experiences for mainstream consumers. This chain adopts an account abstraction mechanism, simplifying wallet setup and on-chain signature processes, thereby lowering the entry barrier. Through zk-rollup technology, Abstract offers low-cost, high-throughput on-chain transaction capabilities, providing scalability and security guarantees for consumer applications.

Despite the intense competition in the blockchain ecosystem, there is still a distance to go for true large-scale mainstream user adoption. Early projects like Arbitrum and Optimism successfully addressed performance bottlenecks and attracted crypto-native users. However, to achieve so-called "consumer-grade crypto," a Web3 platform with low entry barriers and high stickiness still needs to be built.

Early explorations like 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 the model relying on the ecological openness of Web2 platforms is still difficult to realize in mature markets such as 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 Portal platform as an entry point for games and applications. The Portal is not just a content display window, but a highly interactive online destination that integrates sections such as live streaming, rewards, collectibles, and Spotlight( application recommendations) to create a sticky user experience. This strategy differentiates Abstract from other chains and becomes a core engine for 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 ) through the development of on-chain applications and the introduction of DeFi protocols. To attract users, projects incentivize 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 recently rose to fame due to meme coins. These native assets lock users onto the chain while attracting developers to build applications around the trends. In business terms, this is akin to having customers use a specific payment card that can only be spent at certain stores.

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

• Basic Services: Provides tools such as wallets, fiat gateways, and token exchanges, empowering entry into 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.

Metaphorically speaking, Abstract is akin to operating a thriving large shopping center: integrating multiple stores in one place, with a central stage continuously hosting performance activities, maintaining high foot traffic and activity levels, encouraging customers to keep coming back to enjoy.

The following analysis revolves around three core growth areas: user acquisition >> Portal hosting >> application ecosystem driving. Together, they form a key component of the Abstract platform's business flywheel.

A. User Guide

The initial user base of Abstract largely relies on its association with the Pudgy Penguins IP and its 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 clear advantage in converting interest into actual users.

Easy entry experience

Abstract Chain is dedicated 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 a 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.

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 features and offers recharge options including bridging and fiat deposits, 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 barrier to entry, 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 owned by Pudgy Penguins. Pudgy Penguins has over 3 million fans on Twitter(, Instagram, and TikTok before X), and has over 500,000 PENGU token holders, providing a ready 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 functions greatly promoted the growth of the Portal—1.61 million wallets were activated within 2 months after the mainnet launch.

More importantly, due to the broad 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 distributed across European and East Asian countries such as Germany, the United Kingdom, 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 the "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 performs impressively. 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. 40% of Abstract global wallet ) AGW ( users return 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 loved 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 users to return but also enhances the platform's 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 "Stream-to-Earn" model introduced by Abstract ) allows users to earn money through live streaming by encouraging participation via rewards, comments, gifts, etc. Both streamers and viewers can 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 broadcasters, with a total viewing time exceeding 500,000 hours. Some top broadcasters have received tips of up to 9 ETH in a single live broadcast. The top 100 broadcasters account for a significant portion of the platform's tip revenue, with individual monthly incomes ranging between $4,000 and $5,000, and 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 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 by linking social accounts or engaging in activities such as using recommended applications.

At the same time, through the badge function, users can showcase their achievements. Depending on behavior and task levels, different types of badges will be issued as on-chain NFTs or displayed within the application, 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 throughout the Abstract ecosystem, developing 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 in to these applications directly using their Abstract ID, allowing them to start experiencing immediately without a complicated registration process.

( C. Application Ecosystem

For any blockchain, ultimate success depends on whether it can cultivate a rich and diverse application ecosystem. For Abstract, this mission is to attract Web3 projects and mainstream institutions to develop "interesting" applications aimed at consumers.

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 XP rewards based on user engagement each month, with outstanding projects having the opportunity to receive additional incentives. The live streaming platform also promotes featured games through embedded links to drive traffic to applications.

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