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

Summary

• Abstract Chain is a consumer-centric blockchain launched in January 2025, dedicated to promoting the popularization of cryptocurrency technology and building a platform that is easy to access and participate in.
• Abstract Chain provides a seamless user experience through native account abstraction, leveraging the established Pudgy Penguins and PENGU fan communities as a unique user base to offer differentiated value.
• 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 of over 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 about 2 million, daily active wallets are about 100,000, and daily on-chain transactions are about 700,000, reflecting the high activity of the platform.

Introduction

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

Despite the intense competition in the blockchain ecosystem, there is still a distance to go before achieving widespread mainstream user adoption. 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 a low entry barrier 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 achieved some success, but this model, which relies on the ecological openness of Web2 platforms, 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 of it.

The mainnet of Abstract will be launched 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, integrating sections such as live streaming, rewards, collectibles, and Spotlight( application 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 new chains 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 incentivize participation through methods such as airdrops.

The network effects of this model mainly rely on the on-chain assets held by users. For example, Ethereum was dominated by the NFT boom in its early days, while Solana has recently gained popularity due to meme coins. These native assets tie users to the chain while guiding developers to build applications around trends. In business terms, 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. Instead of focusing on asset accumulation, it has built the portal platform (Portal) as a dynamic online hub designed around three main functions:

• Basic services: Provide tools such as wallets, fiat gateways, and token exchanges, empowering access to the ecosystem.
• User Interaction: Live broadcasts and reward center enhance user engagement.
• Project Discovery: The Spotlight section guides users to explore new content.

This system enables new users to quickly engage with Web3, while existing users are continuously drawn back by new content.

Metaphorically likened to a shopping mall, the operation of Abstract is similar to that of a thriving large shopping center: integrating multiple stores in one place, continuously holding performance events 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 hosting >> application ecosystem driving. These collectively constitute the key 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 user-friendly design concept. 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 onboarding experience

Abstract Chain is dedicated to simplifying the user onboarding process by 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 or sign transactions frequently. Account recovery and transfer operations are as intuitive as browsing the web or playing games. Furthermore, the chain employs zero-knowledge rollup technology, ensuring extremely low gas fees and high parallel processing capabilities, significantly reducing the cost of on-chain interactions.

Once users create an account, they can immediately access all basic crypto tools through Portal. The wallet in the upper left corner supports real-time trading features and offers recharge options including bridging and fiat deposit services, enabling quick fund deposits. The trading section of Portal supports native token swaps 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 of Pudgy Penguins. Pudgy Penguins has over 3 million followers on Twitter(, Instagram, and TikTok before X), along with more than 500,000 PENGU token holders, providing a ready user base for the Abstract chain.

In Abstract's Portal, the image of Pudgy Penguins is everywhere, just like Mickey Mouse at Disneyland: appearing on 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 for PENGU on Abstract.

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

Moreover, due to the widespread fan base 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 are from the United States, with the remaining users mainly distributed across European and East Asian countries ( Germany, the United Kingdom, 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 "(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.

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

Live Streaming Feature

Live streaming is a media loved 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 the platform's stickiness and monetization potential. Live streaming has been proven to promote game and merchandise sales, which is highly aligned with Abstract's goal of building an entertainment ecosystem.

The "Watch-to-Earn(Stream-to-Earn)" model introduced by Abstract 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 to 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 a total viewing time exceeding 500,000 hours. Some top streamers have received tips of up to 9 ETH during a single live broadcast. 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 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 are still rare 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 align with the target behavior. Content creators can earn XP through interactive live streaming, 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 credit system.

Currently, this system is still in its early stages, with functionality limited to within the Portal. However, it is anticipated that the XP and badge system will expand to the entire Abstract ecosystem in the future, evolving into a comprehensive loyalty and credibility framework that covers both developers and users.

Application Discovery

Portal also serves as the "app store" for the Abstract ecosystem. In the "Discover" section, it showcases outstanding 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 with their Abstract ID, allowing them to start experiencing immediately without a complicated registration process.

C. Application Ecosystem

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 "interesting" applications aimed at consumers 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 grants. Developers can earn XP rewards each month based on user participation, and outstanding projects have the opportunity to receive additional incentives. The live streaming platform also