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 widespread adoption of cryptographic technology and building an accessible and participatory platform.
• Abstract Chain offers a good user experience brought by native account abstraction and leverages the established fan base of Pudgy Penguins and $PENGU to provide differentiated value through its unique user structure.
• Abstract's growth strategy revolves around creating a digital entertainment theme park: having its own portal platform, integrating live streaming and reward systems, and attracting application developers to join the ecosystem.
• This live streaming platform has attracted over 10,000 broadcasters, with users averaging more than 7 minutes of participation time daily, 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 activity level.

Introduction

Abstract Chain was established in March 2024 and is a Layer 2 blockchain based on Ethereum, utilizing zero-knowledge proof (zk) technology, dedicated to providing mainstream end users with a seamless and differentiated Web3 experience. 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, ensuring scalability and security for applications aimed at end users.

The competition in the blockchain ecosystem is fierce, but there is still a way to go before 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 referred to as "crypto for the end user," it is necessary to build a Web3 platform that combines low barriers to entry with high user engagement.

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 this model, which relies on the ecological openness of Web2 platforms, is still difficult to realize 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 gaming and application ecosystem. Portal is not only a content showcase but also 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 serves as the core engine for its growth.

Abstract's flywheel

The development of new chains typically begins 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 encourage participation through methods such as airdrops.

The network effects of these models largely depend on the on-chain assets held by users. For instance, 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 encouraging developers to build applications around trends. From a business perspective, this approach is akin to having customers use a specific payment card that can only be spent at certain stores.

Abstract Chain adopts 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 on-ramps, token exchanges, etc., to enable entry into the ecosystem.
• User Interaction: Enhance user engagement through live streaming and the rewards center.
• Project Discovery: Guiding users to explore new content through the Spotlight section

This system allows new users to quickly enter Web3, while existing users are continuously recalled through new content.

If we analogize to a shopping mall, Abstract is similar to operating a thriving large shopping center: integrating multiple stores in one place, continuously hosting performances on a central stage to maintain high foot traffic and activity, encouraging customers to return and enjoy.

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

A. User Guidance

The early user base of Abstract largely relies on its association with the Pudgy Penguins IP and its extremely simple and user-friendly design philosophy. Fans of Pudgy and $PENGU continue to flock to Abstract, and its smooth 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 Abstract accounts and activate wallets just like registering for a regular website account. Users do not need to manage private keys, nor do they need to frequently sign transactions. Account recovery or transfer operations feel as easy as browsing the web or playing games. Additionally, the chain employs ZK rollup technology, ensuring extremely low gas fees and high concurrent 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 top left corner supports real-time trading features, offering recharge options including bridging and fiat deposit services for quick fund transfers. The trading section 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, enabling users to access the on-chain world seamlessly.

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 Abstract chain.

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

The synergy between this IP and platform functionalities has greatly driven the growth of Portal - activating 1.61 million wallets within 2 months after the mainnet launch.

Moreover, due to the widespread distribution of Pudgy and $PENGU fans, Abstract's user profile also differs from other end-user-focused crypto ecosystems like TON and Kaia. Abstract attracts a large number of users from developed markets --- with 17.4% from the United States, and 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 end-user 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 their assets and rewards.

Initial data shows that Portal performs remarkably well. 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 of over 7 minutes per day. Among Abstract global wallet)AGW( users, 40% returned to make at least one transaction within 30 days of wallet creation, a retention rate that far exceeds the industry average.

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Live function

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 users to return 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 to Earn" ) Stream-to-Earn ( model introduced in this abstract encourages user participation through rewards, 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 total viewing hours exceeding 500,000. Some top streamers can even receive 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 they have more than 4,000 interactive users.

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Reward and Reputation System

Many crypto projects encourage early users to participate 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 Using off-chain XP as the main incentive tool to reward participants who meet the target behaviors. Content creators can earn XP through live interaction, developers can earn XP by completing user activity tasks, and regular users can earn XP by linking social accounts, using recommended applications, and other actions.

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 based on the level of actions and tasks, becoming part of the user's identity and gradually forming a complete reputation system.

Currently, this system is still in its early stages, and its functionality is limited to within the Portal. However, in the future, the XP and badge system is expected to expand throughout the entire Abstract ecosystem, evolving into a loyalty and reputation framework that covers the whole ecosystem, catering to both developers and users.

Application Discovery

Portal also serves as the "app store" of 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.

![Overview Analysis of Abstract Chain: En