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

Summary

• Abstract Chain will be launched in January 2025 as a user-centric blockchain, dedicated to promoting the widespread adoption of cryptocurrency technology and building an accessible and engaging platform.
• Abstract Chain provides a comfortable user experience through native account abstraction, leveraging the advantages of the established Pudgy Penguins and $PENGU fan base, with its unique user structure offering differentiated value.
• Abstract's growth strategy revolves around building 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 streamers, with users averaging more than 7 minutes of participation per day 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, about 100,000 daily active wallets, and around 700,000 on-chain transactions per day, reflecting the platform's high level of activity.

Introduction

Abstract Chain was established in March 2024 as a layer two blockchain based on Ethereum, utilizing zero-knowledge proof (zk) technology, aiming to provide mainstream end users with a seamless and differentiated Web3 experience. This chain employs an account abstraction mechanism, simplifying wallet setup and on-chain signing 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 applications aimed at end users.

The competition in the blockchain ecosystem is fierce, but there is still some distance to true large-scale mainstream user adoption. Early projects like Arbitrum and Optimism have successfully addressed performance bottlenecks and attracted crypto-native users. However, to realize what is referred to as "Crypto for End Users," 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 like Telegram and LINE. This has been somewhat successful, but this model that 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 embedding of cryptographic technology into applications aimed at end users, allowing users to utilize it unconsciously.

The mainnet of Abstract will be launched in January 2025, along with the introduction of the portal platform "Portal" as an entry point to 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, Spotlight( app recommendations), and other sections, creating a sticky user experience. This strategy differentiates Abstract from other chains, becoming the core engine of its growth.

The flywheel effect of Abstract

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 mainly rely on the on-chain assets held by users. For example, Ethereum was initially driven by the NFT craze, while Solana recently gained popularity due to meme coins. These native assets bind users to the blockchain while encouraging developers to build applications around hot topics. In a business analogy, this method is like making 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: Providing tools such as wallets, fiat gateways, token exchanges, etc., to enable access to 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 enables new users to quickly enter Web3, while existing users are continually recalled by new content.

Metaphorically likened to a shopping center, Abstract is similar to managing a prosperous large mall: integrating multiple stores in one place, with a central stage that continuously hosts performances, maintaining high traffic and activity, allowing customers to keep coming back to enjoy.

The following analysis focuses on three key growth areas: user traffic >> portal adoption >> application ecosystem drive. Together, these form the core components 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. Fans of Pudgy and $PENGU continue to flock to Abstract, and its smooth onboarding experience gives the chain a clear advantage in converting attention into actual users.

Easy Entry 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 a 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 easy as browsing the web or playing a game. Additionally, the chain utilizes ZK rollup technology, ensuring extremely low gas fees and high parallel processing capabilities, significantly reducing the cost of on-chain interactions.

After 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 functions and provides deposit options including bridging and fiat deposit services, allowing 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, 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 a total of over 3 million followers across X( original 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 as ubiquitous as Mickey Mouse in Disneyland: appearing in marketing banners, user avatars, live streaming 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 the platform's functionality has greatly facilitated the growth of Portal—activating 1.61 million wallets within two months after the mainnet launch.

Moreover, due to the broad distribution of Pudgy and $PENGU fans, Abstract's user profile is also different from other end-user-oriented crypto ecosystems like TON and Kaia. Abstract has attracted a large number of users from developed markets—17.4% of whom are from the United States, with the remaining users primarily distributed in 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 end-user-oriented applications, providing a strong foundation for Abstract to build a high-quality consumer ecosystem.

B. Portal Platform

The Abstract portal platform is known as "Digital Theme Park" ( Digital Theme Park of Fun ). It 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 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 session time exceeding 7 minutes. Among users of the Abstract Global Wallet ( AGW ), 40% returned at least once to transact 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 format 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 potential. Live streaming has been proven to facilitate game and merchandise sales, aligning perfectly with Abstract's goal of building an entertainment ecosystem.

The "Watch-to-Earn" model introduced by Abstract, ( Stream-to-Earn ), encourages user participation through rewards, comments, gifts, and other means, 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 receive tips of up to 9 ETH in a single 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 having over 4,000 interactive users.

Reward and Reputation System

Many crypto projects encourage early user participation through point mechanisms, but truly complete loyalty and reputation systems in on-chain ecosystems are still rare. Abstract uses the 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 live interaction, developers can earn XP by completing user activity tasks, and regular 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. Different types of badges are minted as on-chain NFTs or displayed within the app based on the level of behavior 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, 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 loyalty and reputation framework that covers the whole ecosystem, aimed at 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, etc. Users can log in to these applications directly using their Abstract ID, allowing them to start experiencing without the cumbersome registration process.

C. Application Ecosystem

For any blockchain, ultimate success depends on whether it can 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), and also supports the migration of existing Ethereum smart contracts, facilitating cross-chain deployment.