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 popularization of cryptographic technology and creating an easily accessible and engaging platform.
• Abstract Chain provides a seamless user experience through native account abstraction and leverages 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 to enter the ecosystem.
• This live streaming platform has attracted over 10,000 broadcasters, with an average daily user engagement time 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 application: the number of registered wallet users is approximately 2 million, daily active wallets are about 100,000, and there are approximately 700,000 on-chain transactions per day, reflecting a high level of platform activity.

Introduction

Abstract Chain is a Layer 2 blockchain based on Ethereum, established in March 2024, utilizing zero-knowledge encryption (zk) technology, dedicated to providing a seamless and differentiated Web3 experience for mainstream consumers. This chain adopts an account abstraction mechanism, simplifying wallet setup and on-chain signing processes, reducing the entry threshold. Through zk-rollup technology, Abstract can offer low-cost, high-throughput on-chain transaction capabilities, providing scalability and security guarantees for consumer applications.

Despite the fierce competition in the blockchain ecosystem, there is still a distance to go before achieving large-scale mainstream user adoption. Early projects like Arbitrum and Optimism have successfully addressed performance bottlenecks, attracting crypto-native users. However, to realize what is referred to as "consumer-grade cryptocurrency," a Web3 platform with low barriers to entry and high user retention needs to be built.

Early explorations like TON and Kaia attempted to reduce user acquisition costs by integrating Web3 into mainstream social platforms such as Telegram and LINE. Although some progress has been made, this model, which relies on the openness of Web2 platform ecosystems, remains difficult to achieve in mature markets like Europe and the United States.

Abstract Chain has chosen a different path: integrating encryption technology directly into consumer applications, encouraging users to use it directly without being aware.

The mainnet of Abstract will launch in January 2025, along with the portal platform Portal, which serves as an entry point for games and application ecosystems. 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 becomes the core engine of growth.

Abstract's business flywheel

The development of a new chain typically 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 will encourage participation through methods such as airdrops.

The network effect of this model mainly relies on the on-chain assets held by users. For example, Ethereum was initially driven by the NFT craze, while Solana has recently gained popularity due to meme coins. These native assets bind users to the chain while also attracting developers to build applications around the trends. Metaphorically, 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 has taken 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., empowering the ability to enter the ecosystem.
• User interaction: The live broadcast and rewards center strengthen user engagement.
• Project Discovery: The Spotlight section guides users to explore new content.

This system allows new users to quickly access Web3, while existing users are continuously attracted back by new content.

Metaphorically likened to a shopping center, Abstract is similar to operating a thriving large mall: integrating multiple stores together, continuously hosting performance events on a central stage, maintaining high foot traffic and activity levels, and encouraging customers to return to enjoy.

The following analysis revolves around three core growth areas: user acquisition >> portal hosting >> application ecosystem drive. Together, they form the core components of the Abstract platform's business flywheel.

A. User Guidance

The initial user base of Abstract largely relies on its association with the Pudgy Penguins IP and its extremely simple and user-friendly design philosophy. While fans of Pudgy and PENGU continue to flock to Abstract, its smooth onboarding experience gives the chain a significant advantage in converting interest into actual users.

Easy Getting Started 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 Abstract accounts and activate wallets 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 employs zero-knowledge rollup technology, ensuring extremely low gas fees and high concurrent 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 of the page supports real-time trading functions and provides recharge options including cross-chain bridges and fiat deposit services, enabling quick fund deposits. The trading section of the Portal supports native token swaps without the need to search for third-party services. These integrated features collectively lower the usage threshold, 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 fans on X(, Twitter), Instagram, and TikTok, 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 at Disneyland: appearing in 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 of PENGU on Abstract.

The synergy between this IP and the platform's functions greatly promoted the growth of Portal—activating 1.61 million wallets within two months after the mainnet launch.

More importantly, due to the widespread fan distribution of Pudgy and PENGU, the user profile of Abstract 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 come from the United States, while the remaining users are mainly distributed in European and East Asian countries such as ( Germany, the UK, France, Japan, South Korea, Singapore, Hong Kong, etc. ). This user group is very valuable for consumer-facing applications, providing a strong foundation for Abstract to build a high-quality consumer ecosystem.

B. Portal Platform

The portal platform of Abstract is called "数字主题乐园(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.

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 exceeding 7 minutes. Among users of the Abstract Global Wallet ( AGW ), 40% return to make at least one transaction within 30 days of creating their wallet, a retention rate that far exceeds the industry average.

Live Streaming Feature

Live streaming is a medium favored by young people around the world. Web2 platforms like Twitch attract 240 million unique users globally each month. For Abstract, live streaming is not only a reason for user return visits but also enhances platform stickiness and monetization capabilities. Live streaming has been proven to promote game and merchandise sales, which is highly consistent with Abstract's goal of building an entertainment ecosystem.

The "Stream-to-Earn(" model introduced by Abstract encourages user participation through 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 streamers, with total viewing hours exceeding 500,000. Some top streamers have received tips of up to 9 ETH in a single live stream. The top 100 streamers account for a significant portion of the platform's tipping revenue, with individual monthly incomes ranging from $4,000 to $5,000, and having over 4,000 interactive users.

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Reward and Reputation System

Many crypto projects encourage early user participation through point mechanisms, but in on-chain ecosystems, truly complete loyalty and reputation systems are still scarce. Abstract uses the 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 connecting social accounts or using recommended applications.

At the same time, through the badge feature, users can 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, in the future, the XP and badge system is expected to expand to the entire 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 outstanding 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 the ability to 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)" to provide developers with market support, technical guidance, and monthly subsidies. Developers can earn XP rewards monthly based on user engagement, and outstanding projects have the opportunity to receive additional incentives. Live streaming platform