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

Overview

• Abstract Chain is a consumer-centric blockchain launched in January 2025, dedicated to promoting the mainstream adoption of cryptocurrency technology and creating an easy-to-use platform with a sense of participation.
• 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 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 exceeding 7 minutes and a 30-day retention rate of 40%. The live streaming feature has become one of its main competitive advantages.
• Abstract Chain has currently achieved large-scale application: the number of registered wallet users is about 2 million, daily active wallets are about 100,000, and the average daily on-chain transactions are about 700,000, reflecting the high activity level of the platform.

Introduction

Abstract Chain is a Layer 2 blockchain based on Ethereum that was established in March 2024. It adopts zero-knowledge ( zk ) cryptography technology and is committed to providing mainstream consumers with a seamless and differentiated Web3 experience. This chain uses an account abstraction mechanism to simplify wallet setup and on-chain signing processes, lowering the entry barriers. Through zk-rollup technology, Abstract provides low-cost, high-throughput on-chain transaction capabilities, ensuring scalability and security for consumer applications.

Despite the fierce competition in the blockchain ecosystem, there is still a distance to go for true mass adoption among mainstream users. Early projects like Arbitrum and Optimism have successfully addressed performance bottlenecks and attracted crypto-native users. However, to achieve what is known as "consumer-grade crypto," it is necessary to build a Web3 platform with low barriers to entry and high user retention.

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 results were achieved, this model relying on the openness of Web2 platform ecosystems remains difficult to implement 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 directly without being aware.

The mainnet of Abstract is set to launch in January 2025, along with the introduction of the Portal platform, which serves as an entry point for games and application ecosystems. The Portal is not just a window for content display but a highly interactive online destination that integrates sections such as live streaming, rewards, collectibles, and Spotlight( app recommendations), creating a sticky user experience. This strategy differentiates Abstract from other chains and positions it as a core engine for growth.

The business flywheel of Abstract

The development of a new blockchain usually starts with building a developer ecosystem, gradually increasing the on-chain locked value ( TVL ) by developing on-chain applications and introducing DeFi protocols. To attract users, projects will incentivize 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 dominated by the NFT craze, while Solana has recently gained popularity due to meme coins. These native assets lock users into the chain while also attracting developers to build applications around the trends. To draw an analogy from a business perspective, this approach is similar to having customers use a specific payment card that can only be used at certain stores.

Abstract Chain has taken a different approach. Instead of focusing on asset accumulation, it has built the portal platform (Portal) as a vibrant online hub designed around the following three main functions:

• Basic Services: Provide tools such as wallets, fiat gateways, token swaps, etc., empowering access to 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 access Web3, while existing users are continuously attracted back by new content.

Metaphorically likened to a shopping mall, Abstract is similar to managing a thriving large shopping center: integrating multiple stores in one place, continuously hosting performance activities on a central stage, maintaining high traffic and activity, allowing customers to keep returning for enjoyment.

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

A. User Guide

Abstract's initial user base heavily relies on its association with the Pudgy Penguins IP and its minimalist 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 attention into actual users.

Easy onboarding experience

Abstract Chain is committed to simplifying the user onboarding process and eliminating traditional barriers. With the native account abstraction feature, users can easily create an Abstract account and activate their wallet 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 and transfer operations are as intuitive as browsing the web or playing games. In addition, the chain employs zero-knowledge rollup technology, ensuring extremely low gas fees and high parallel processing capabilities, significantly reducing on-chain interaction costs.

After users create an account, they 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 offers recharge options including cross-chain bridges and fiat deposit services, enabling 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, and has 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 everywhere, much like Mickey Mouse in Disneyland: appearing on marketing banners, user avatars, live streaming stickers, and more. For PENGU holders, the Portal also has practical uses — they can tip in 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 features greatly promoted the growth of Portal—1.61 million wallets were activated within two months after the mainnet launch.

Moreover, due to the widespread 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, while the remaining users are mainly distributed across European and East Asian countries such as Germany, the United Kingdom, France, Japan, South Korea, Singapore, and Hong Kong. This user group is very valuable for consumer-oriented applications and provides a strong foundation for Abstract to build a high-quality consumer ecosystem.

( B. Portal Platform

The portal platform of Abstract 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.

According to early data, 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 of over 7 minutes. Among Abstract global wallet (AGW) users, 40% returned to make a transaction at least once within 30 days of creating their wallet, a retention rate that is far above the industry average.

Live streaming feature

Live streaming is a media favored by young people worldwide. 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 potential. It has been proven that live streaming can promote game and merchandise sales, which aligns closely 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., 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 visits and social sharing.

By the end of April 2025, Portal has gathered over 1,000 streamers, with total viewing time exceeding 500,000 hours. Some top streamers have received 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 income, with individual monthly earnings 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 is still scarce in on-chain ecosystems. 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 through actions such as connecting social accounts or using recommended applications.

At the same time, the badge feature allows users to 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 the early stages, with functionality limited to within the Portal. However, it is expected that in the future, the XP and badge system will expand to the entire Abstract ecosystem, evolving into a comprehensive loyalty and reputation framework that covers both developers and users.

Application Discovery

Portal also acts as an "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, etc. 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 Ecology

The ultimate success of any blockchain depends on whether it can cultivate a rich and diverse application ecosystem. For Abstract, its mission is to attract consumer-facing "interesting" 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 monthly XP rewards based on user participation, and outstanding projects have the opportunity to receive additional incentives. Live streaming platform.