Comprehensive Analysis of Abstract Chain: How to Drive the Public Chain Ecosystem Towards the General Public?

Key Points

• Abstract Chain will launch in January 2025, dedicated to creating a consumer-centric blockchain aimed at promoting the proliferation of crypto technology and establishing a platform that is accessible and engaging.

• Abstract Chain adopts native account abstraction technology to provide a smooth user experience. At the same time, leveraging the Pudgy Penguins( IP and the advantages of the PENGU fan community, it offers differentiated value through a unique user structure.

• Abstract's growth strategy revolves around building a digital entertainment theme park: establishing its own portal platform, integrating live streaming and reward systems, and attracting developers to join the ecosystem.

• As of May 2025, the platform has attracted over 10,000 streamers, 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 the main competitive advantages.

• Abstract Chain has achieved large-scale application: nearly 2 million registered wallet users, about 100,000 daily active wallets, and approximately 700,000 on-chain transactions per day, demonstrating a very high level of platform activity.

) Introduction

Abstract Chain was established in March 2024 as an Ethereum-based Layer 2 blockchain that utilizes zero-knowledge encryption technology, aiming to provide mainstream users with a seamless Web3 experience. This chain employs an account abstraction mechanism to simplify wallet setup and transaction signing processes, reducing the barrier to entry. Through zk-rollup technology, Abstract offers low-cost, high-throughput transaction capabilities, bringing scalability and security guarantees to consumer applications.

Despite the fierce competition in the blockchain ecosystem, there is still a distance to true mass adoption. Early successes like Arbitrum and Optimism have addressed performance bottlenecks, attracting crypto-native users. However, to achieve "consumer-grade Crypto," it is necessary to build a Web3 platform that combines low barriers to entry with high user retention.

TON and projects like Kaia have attempted to reduce customer acquisition costs by integrating Web3 into mainstream social platforms. Although there have been some results, this model that relies on the openness of Web2 platforms is difficult to implement in mature markets.

Abstract Chain has chosen a different path: embedding encryption technology directly into consumer applications to enable seamless user experience. The mainnet will go live in January 2025, along with the launch of the Portal platform as an entry point into the gaming and application ecosystem. The Portal not only showcases content but also serves as a highly interactive online destination, integrating features such as live streaming, rewards, collectibles, and application recommendations to create a sticky user experience. This strategy distinguishes Abstract from other public chains and becomes the core of its growth.

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) Abstract's business flywheel

Abstract Chain has adopted a development path different from traditional public chains. It does not focus on asset accumulation, but instead builds the portal platform ###Portal( into a dynamic online center, designed around three main functions:

1. Basic Services: Provide tools such as wallets, fiat currency entry, token exchange, etc., to facilitate entry into the ecosystem;
2. User Interaction: Enhance user engagement through live broadcasts and the rewards center;
3. Project Discovery: The Spotlight section guides users to explore new content.

This system ensures that new users can quickly access Web3, while existing users are continually attracted back by new content.

Abstract is more like operating a thriving large shopping mall: integrating multiple shops, continuously hosting events in the center, maintaining high traffic and activity, and encouraging users to return frequently.

The following analysis will focus on three key growth areas: user inflow >> portal reception >> application ecosystem drive. Together, they form the core components of the Abstract platform's business flywheel.

![Abstract Chain Overview: How to Bring Public Chain Ecosystems to Mainstream Users?])https://img-cdn.gateio.im/webp-social/moments-ca76d4de91408f1712db42558bd03e5f.webp(

) A. User Guide

The initial user base of Abstract greatly benefited from its association with Pudgy Penguins### and the extremely user-friendly design philosophy. Although fans of Pudgy and PENGU continue to pour in, its smooth onboarding experience gives this chain a significant advantage in converting attention into actual users.

(# Easy to Use Experience

Abstract Chain is committed to simplifying the user onboarding process by eliminating traditional barriers. 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 and transfer operations are as intuitive as browsing the web or playing games. In addition, the on-chain implementation of zero-knowledge rollup technology ensures extremely low gas fees and high concurrency capabilities, significantly reducing costs for on-chain interactions.

After users create an account, they can immediately use all basic crypto tools through the Portal. The wallet located in the upper left corner of the page supports real-time trading functions and provides deposit options, including bridging and fiat deposit services, making it easy to quickly fund accounts. The trading section of the Portal supports native currency exchanges without the need to search for third-party services. These integrated features collectively lower the entry barriers, allowing users to seamlessly connect to the on-chain world.

)# Pudgy fans as an early user base

Abstract leverages the large and active fan community owned by Pudgy Penguins. Pudgy Penguins has a total of over 3 million fans on major social platforms, and more than 500,000 PENGU token holders, providing a ready user pool for the Abstract chain. In Abstract's Portal, the image of Pudgy Penguins is everywhere, just like Mickey Mouse in Disneyland: it appears in marketing banners, user avatars, and live stream stickers. For PENGU holders, the Portal also has practical uses—they can tip live streams using PENGU tokens, which is one of the scenarios where PENGU can be used on Abstract.

The synergy between this IP and platform functions has greatly facilitated the growth of Portal—attracting 1.61 million wallet activations within two months of the mainnet launch. More importantly, due to the widespread fan distribution of Pudgy and PENGU, the user profile of Abstract differs from other consumer-level crypto ecosystems. Abstract attracts a large number of users from developed markets—17.4% of whom are from the United States, while the remaining users are primarily located in European and East Asian countries, including Germany, the UK, France, Japan, South Korea, Singapore, and Hong Kong. This user group is highly valuable for consumer applications, providing a strong foundation for Abstract to build a high-quality consumer ecosystem.

![Abstract Chain Overview: How to Bring Public Chain Ecosystem to Mainstream Users?]###https://img-cdn.gateio.im/webp-social/moments-6938f57b0d9409c0c6443f6a55bbc6c0.webp###

( 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.

Early data indicates that Portal is performing well. 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 over 7 minutes per day. Among Abstract's global wallet ) AGW ( users, 40% return to conduct at least one transaction within 30 days of wallet creation, a retention rate that far exceeds the industry average.

)# Live Streaming Feature

Live streaming is a medium that is highly favored by young people around the world. For Abstract, live streaming is not only a reason for users to revisit, but it also enhances platform stickiness and monetization potential. Live streaming has been proven to promote game and product sales, which aligns closely with Abstract's goal of building an entertainment ecosystem.

The "Watch and Earn" ( Stream-to-Earn ) model launched by Abstract encourages users to engage interactively, including tipping, commenting, giving gifts, and other methods, allowing both streamers and viewers to earn tokens, rewards, or experience points ### XP (. In addition, the "Follow" and "Recommend" features help to build a community atmosphere, promoting users' continuous visits and social sharing.

As of the end of April 2025, Portal has accumulated over a thousand broadcasters, with total live viewing hours exceeding 500,000. Some top broadcasters have even received tips as high as 9 ETH in a single session. The top 100 broadcasters account for a significant share of the platform's tip revenue, with individual monthly incomes ranging between $4,000 and $5,000, and interactive users exceeding 4,000.

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)# Rewards and Reputation System

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 engagement tasks, and regular users can acquire XP through actions such as linking 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 minted as on-chain NFTs or displayed within the app based on behavior and task levels, becoming a part of the user's identity and gradually forming a complete reputation system.

The system is still in its early stages, with functionalities limited to the Portal. However, in the future, the XP and badge system is expected to expand throughout the entire Abstract ecosystem, evolving into a comprehensive loyalty and reputation framework that serves both developers and users.

(# Application Discovery

Portal also plays the role of an "app store" for the Abstract ecosystem. The "Discover" section showcases high-quality applications selected by user votes and categorizes them into sections, including: digital collectibles, games, NFTs, social, AI, trading, and prediction markets, etc. Users can log into these applications directly using their Abstract ID, allowing them to start experiencing immediately without a complicated registration process.

![Abstract Chain Overview: How to Bring Public Chain Ecosystem to Mainstream Users?])https://img-cdn.gateio.im/webp-social/moments-f56512c1a76052d0800ff4825806dbf0.webp###

C. Application Ecosystem

The ultimate success of any blockchain depends on whether it can incubate a rich and diverse application ecosystem. For Abstract, its mission is to attract consumer-oriented "fun" 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 launched the "Builder-in-Residence Program"###, providing market support, technical guidance, and a monthly allowance for developers. Developers can earn monthly XP rewards based on user engagement, and outstanding projects have the opportunity to receive additional incentives. The live streaming platform will also promote featured games through embedded links to drive traffic to applications.

Games are an important entry point for attracting Web2 users into the Web3 world. Among the top ten popular applications of Abstract, eight are game-related products. Popular games include "Pudgy World," "Bigcoin," "BTC Mining Game," adventure titles like "Onchain Heroes" and "LOL Land," as well as the Pudgy IP game launched by YGG, along with community projects like "Gigaverse."

By collaborating with mainstream NFT platforms, Abstract has enabled the buying and selling of game assets, further enriching the gaming ecosystem. Currently, over 120 projects have been deployed on Abstract, covering social applications such as "Gacha", trading platforms like "BuzzFun" and "Myriad", as well as games like "Gigaverse", "Onchain Heroes", and "Multiplier".

The strong user base of Abstract allows new projects to quickly gain attention. For example, "Duper" and "Witty" attracted 50,000 users within just a few days of launching; the prediction market "Myriad" attracted nearly 500,000 users within two months of its launch. These successful cases greatly enhance developers' confidence and encourage more teams to invest in building.

(# Mainstream institutions

Abstract is actively collaborating with consumer-facing institutions, such as music and sports brands, to migrate their Web3 products on-chain. For example, digital collectibles like NBA Top Shots will be issued in the form of NFTs, allowing fans to buy, hold, and trade. These sports and music enthusiasts perfectly align with Abstract's consumer positioning.

For institutions looking for on-chain partners, Abstract has natural advantages – Ethereum-level security, a user-friendly interface, and low barriers to entry.