Overview of Abstract Chain: How to Build a User-Friendly Public Chain Ecosystem for End Users?

TL;DR

• Abstract Chain will be launched in January 2025, working to promote the mass adoption of cryptography (the state of being widely used by many people) as a blockchain centered around end users, and to build an accessible and participatory platform.
• Abstract Chain offers a pleasant user experience through original account abstraction, leveraging the strengths of the established fanbase of Pudgy Penguins and $PENGU, providing differentiated value through its unique user structure.
• Abstract's growth strategy revolves around the construction of a digital entertainment theme park: it has its own portal platform, integrates live streaming and a reward system, and attracts app developers to its ecosystem.
• This live streaming platform has already gathered over 10,000 streamers, with an average user engagement time of over 7 minutes per day, and a 30-day retention rate reaching 40%, making the live streaming feature one of its key competitive advantages.
• Abstract Chain currently achieves large-scale applications: the number of registered wallet users is approximately 2 million, daily active wallets are about 100,000, and the number of transactions on the chain per day is around 700,000, reflecting the platform's high level of activity.

Introduction

Abstract Chain was established in March 2024 as an Ethereum-based layer 2 blockchain that adopts zero-knowledge proof (zk) technology, dedicated to providing a seamless and differentiated Web3 experience to mainstream end users. This chain employs an account abstraction mechanism that simplifies wallet setup and the signing process on the chain, lowering the entry barrier. With zk-rollup technology, Abstract offers low-cost, high-throughput transactional capabilities on the chain, ensuring scalability and security for end-user applications.

The competition in the blockchain ecosystem is fierce, but there is still a distance to go before true large-scale mainstream user adoption is achieved. Early projects like Arbitrum and Optimism have succeeded in addressing performance bottlenecks and attracting crypto-native users. However, to realize the so-called "end-user Crypto," it is necessary to build Web3 platforms that combine low barriers with high stickiness.

Early explorations like TON and Kaia attempted to reduce user acquisition costs by integrating Web3 into mainstream social platforms like Telegram and LINE. While they achieved some results, the model that relies on the ecosystem opening of such Web2 platforms is still difficult to realize in mature markets such as Europe and the United States.

Abstract Chain has chosen a different path: it promotes the direct integration of cryptographic technology into end-user applications, allowing users to use it directly without being aware of it.

The mainnet of Abstract will be operational in January 2025, and at the same time, the portal platform "Portal" was launched as the entrance to the gaming and application ecosystem. Portal is not only a content display window 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 serves as the core engine for its growth.

Abstract Flywheel

The development of a new chain typically begins with the establishment of a developer ecosystem, gradually increasing the total value locked (TVL) on the chain through application development and the introduction of DeFi protocols. To attract users, projects often encourage participation through methods such as airdrops.

The network effects of these models primarily depend on the assets held by users on the chain. For example, the early days of Ethereum were driven by the NFT boom, while Solana has recently gained popularity with meme coins. These native assets tie users to the chain while simultaneously encouraging developers to build applications around trends. Commercially speaking, this approach is akin to making customers use a specific payment card that can only be spent at certain stores.

Abstract Chain takes a different approach. Instead of focusing on asset accumulation, it is built as a dynamic online hub designed around the Portal platform with the following three key functions:

• Basic Services: Provides tools such as wallets, fiat currency gateways, and token exchanges, enabling access to the ecosystem.
• User Interaction: Live streaming and the rewards center increase user engagement.
• Project Discovery: Guide users to explore new content in the Spotlight section

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

If we compare it to a shopping mall, Abstract is similar to managing a thriving large shopping center: by integrating multiple stores in one location and continuously hosting performances on a central stage, it maintains high foot traffic and vibrancy, ensuring customers keep coming back to enjoy.

The following analysis focuses on three key growth areas: user flow >> portal adoption >> application ecosystem driven. Together, these constitute the core components of the Abstract platform's business flywheel.

Platform Business Flywheel: Users > Portal Frontend > Ecosystem > Users

A. User Guidance

The initial user base of Abstract heavily relies on its association with the Pudgy Penguins IP and its extremely simple and user-friendly design philosophy. Fans of Pudgy and $PENGU continue to flow into Abstract, and its smooth onboarding experience gives this chain a significant advantage in converting attention into actual users.

Easy Getting Started Experience

Abstract Chain is working to eliminate traditional barriers and simplify the user onboarding process. With its 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 fund transfer operations feel like browsing web pages or playing games. Additionally, the chain adopts ZK rollup technology, ensuring extremely low gas fees and high concurrency capabilities, significantly reducing the interaction costs on the chain.

When 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 features and provides charging options, including bridging and fiat deposit services, allowing for quick fund deposits. The trading section of the Portal supports the exchange of native coins, eliminating the need to search for third-party services. These integrated features work together to lower barriers to use and enable users to access the on-chain world without obstacles.

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 across X (formerly Twitter), Instagram, and TikTok, and has more than 500,000 holders of $PENGU tokens, providing an existing user pool to the Abstract chain.

In the Abstract Portal, the image of Pudgy Penguins is present everywhere like Mickey Mouse at Disneyland: appearing on marketing banners, user avatars, live streaming stickers, and more. For $PENGU holders, the Portal also has real-world applications—they can use $PENGU tokens to tip during live streams, which is one scenario where $PENGU can be used in Abstract.

The synergy of this IP and platform features greatly promotes the growth of Portal—1.61 million wallets were activated within two months after the mainnet went live.

Furthermore, it is important to note that the fans of Pudgy and $PENGU are widely distributed, which makes Abstract's user profile different from other end-user crypto ecosystems like TON and Kaia. Abstract attracts many users from developed markets—17.4% of whom are from the United States, while the remaining users are mainly distributed across European and East Asian countries (including Germany, the UK, France, Japan, South Korea, Singapore, Hong Kong, etc.). This user group is highly valuable for end-user applications, providing a strong foundation for Abstract to build a high-quality consumer ecosystem.

B. Portal Platform

The Abstract portal platform is called the "Digital Theme Park of Fun," and it 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.

According to initial data, the performance of Portal is outstanding. 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 more than 7 minutes per day. Among Abstract's global wallet (AGW) users, 40% return for at least one transaction within 30 days of creating their wallet, which significantly 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 from around the globe every month. For Abstract, live streaming is not only a reason for users to come back but also enhances the platform's stickiness and monetization potential. Live streaming has been proven to promote gaming and product sales, which aligns highly with Abstract's goal of building an entertainment ecosystem.

The "Stream-to-Earn" model introduced by Abstract encourages user participation through methods such as tips, comments, and gifts, allowing both streamers and viewers to earn tokens, rewards, or experience points (XP). Additionally, the "Follow" and "Recommend" features help build the community atmosphere and promote users' continuous visits and social dissemination.

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 earnings ranging from $4,000 to $5,000, and they have over 4,000 interactive users.

Reward and Reputation System

Many crypto projects encourage early user participation through point mechanisms, but a truly comprehensive loyalty and reputation system in on-chain ecosystems is still rare. Abstract is building such infrastructure using an XP and badge system.

Abstract uses off-chain XP as a primary incentive tool to encourage participants who align with the target behaviors. Content creators can earn XP through live interactions, developers can earn XP by completing user activity tasks, and general users can earn XP through actions such as linking social accounts or using recommended apps.

At the same time, the badge feature allows users to showcase their achievements. Depending on the level of actions and tasks, different types of badges are minted on the chain as NFTs or displayed within the app, becoming a part of the user's identity and gradually forming a complete reputation system.

Currently, this system is still in its early stages, and its functions are limited to within the Portal. However, in the future, it is expected that the XP and badge system will be expanded throughout the Abstract ecosystem, developing into a loyalty and reputation framework that covers the entire ecosystem catering to both developers and users.

Application Discovery

Portal also serves as an "app store" for the Abstract ecosystem. The "Discovery" section showcases outstanding applications selected by user votes, categorized into: digital collectibles, games, NFTs, social, AI, trading, prediction markets, and more. Users can log in to these applications directly using their Abstract ID and start experiencing them immediately without the hassle of a registration process.

C. Application Ecosystem

The ultimate success for any blockchain depends on its ability to foster a rich and diverse application ecosystem. For Abstract, its mission is to attract "fun" applications for end users from Web3 projects and mainstream companies.

Web3 project

Abstract is fully compatible with EVM (Ethereum Virtual Machine), supports the migration of existing Ethereum smart contracts, and facilitates cross-chain deployment. The platform has launched the "Builder-in-Residence Program" to provide developers with market support, technical guidance, and a monthly allowance. Developers can earn monthly XP rewards based on user engagement, and projects that demonstrate excellent performance also have the chance to earn additional incentives. The live streaming platform promotes distinctive games through embedded links, driving traffic to applications.

Games are an important gateway for Web2 users to enter the Web3 world. Among the top 10 applications on Abstract, 8 are already occupied by gaming 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 announced by YGG, and community projects like "Gigaverse."

Through partnerships with NFT platforms such as Magic Eden and OpenSea, Abstract facilitates the buying and selling of game assets, further enriching the gaming ecosystem.

Currently, over 120 projects have been launched on Abstract, including social applications like "Gacha", trading platforms such as "BuzzFun" and "Myriad", and games like "Gigaverse", "Onchain Heroes", and "Multiplier".

Thanks to Abstract's strong user base, new projects can quickly gain attention. For example, "Duper" and "Witty" attracted 50,000 users within just a few days of their launch, and the prediction market "Myriad" attracted about 500,000 users within two months of its launch. These success stories greatly enhance developers' confidence and encourage more teams to invest in building.

mainstream companies

Abstract is actively collaborating with end-user companies such as music and sports brands to transition their Web3 products onto the chain. For example, digital collectibles like NBA Top Shots are issued in NFT format, allowing fans to purchase, hold, and trade them. These sports and music fans are highly aligned with Abstract's end-user target.

For companies looking for partners on the chain, Abstract has a natural advantage—Ethereum-level security, a user-friendly interface, and low barriers to entry are all core selling points. Currently, specific collaborations have not yet been officially announced, but once initiated, it is expected that Abstract will bring many mainstream Web3 users, allowing them to truly immerse themselves in on-chain experiences.

Recently, Oracle Red Bull Racing launched an on-chain fan interaction project called "In the Moment" with Abstract, targeting Generation Z and Generation Alpha. This initiative combines iconic F1 moments with digital ownership and interactive experiences. The project aims to transform audiences from passive viewers into active participants, representing a strategic rollout over multiple years, and seeks to shift the interests of young people towards a sense of belonging and even a "shareholder" mentality through collectible and interactive methods on-chain.

Core Concept: Crypto for End Users

Luca Netz, the co-founder of Abstract, clearly states: Abstract's mission is to build "crypto for the end user"—that is, to pave the way for the widespread adoption of blockchain applications that "serve the daily lives of billions of people and meet individual needs."

They believe that the best way to lead the first 50 million users into the world of cryptocurrency is to build around the scenario of "extraordinary consumption." In other words, activities that bring joy, evoke emotional resonance, and enhance experiences through cryptographic technology.

Abstract Chain is a key player in this consumer crypto vision. The unique characteristics of blockchain technology—digital ownership, censorship resistance, and borderless payment capability—create unprecedented user experiences in consumer scenarios such as gaming, social, meme culture, and collectibles. Abstract fully unlocks these possibilities through user-centered product design, making everyday life more enjoyable for millions of users.

As Michael Lee, co-founder and CEO of Abstract, stated, "Users of this generation have completely transformed the entertainment, music, and luxury goods industries." From publishers to distributors, from audiences to athletes, from companies to creators, from price tags to cultural value. Abstract's mission is to return "fun, ownership, and creativity" to everyone's hands and make it all accessible.

At the same time, this "growth-driven by non-essential consumption" strategy may deliberately overlook some of the technology stacks (such as advanced DeFi modules, DePin (decentralized infrastructure networks), RWA (real-world assets), etc.) that mainstream blockchains emphasize. Therefore, users should not expect Abstract to rapidly push up TVL like a DeFi-centric chain.

Abstract Chain User Base Growth Graph

Initial chain performance

In July 2024, Abstract officially made its debut and announced a $11 million funding round led by Founders Fund, while also launching its test network (Testnet). Subsequently, the mainnet officially went live on January 27, 2025, with over 120 applications launched as the first batch.

As of late May 2025, Abstract has already created approximately 2 million wallets, and the total number of launched contracts has reached 1.4 million, with the total value secured (TVS) on the chain reaching 53.4 million dollars. At the beginning of March, the daily transaction volume temporarily reached 1.5 million, and has since stabilized at around 500,000. By May, the cumulative number of transactions on the chain has already reached 60 million.

The platform's 30-day activity also shows strong momentum: the total revenue of the top 5 applications reached $1.85 million, and the total amount of NFT transactions exceeded $10.4 million. Abstract Chain has not yet released its native token. Since the zk-rollup technology itself does not require on-chain tokens for gas fee payments, future Abstract tokens need to go beyond traditional models in functional design and provide entirely new practical value.

Abstract Chain Indicator

Comparison of on-chain indicators

Abstract's market strategy (GTM) focuses on acquiring end-users rather than traditional DeFi locked value (TVL) or the share of the developer ecosystem. Therefore, its target user group includes NFT collectors, gamers, streamers, and casual users of social platforms.

From February to May 2025, Abstract's TVS (Total Value Secure) grew by 150%, surging from $20 million to $50 million. The peak of active addresses reached 2 million and stabilized at around 500,000 thereafter. The cumulative transaction volume during the same period reached 60 million. Abstract's initial projects focused on two verticals: NFT and gaming, accurately aligning with its "end-user oriented" positioning, aiming to capture the on-chain consumption market.

Compared to other chains, Abstract has already achieved growth surpassing ZKsync Era (a major zk-Ethereum scaling network) in the first three months after the mainnet launch, with the number of active addresses and transaction volume approaching that of TON. Mature rollups like Base and Arbitrum are referenced as successful examples of EVM that Abstract aims for.

Conclusion

The Abstract team proposes a pioneering model for building a "user-centered" cryptocurrency ecosystem, aiming to drive Web3 towards mass adoption. Their vision of "End User Crypto" has already been validated through the successful expansion of the Pudgy Penguins IP and is currently expanding into a more vibrant, continuously operated online hub, with the Abstract chain as the bearer.

For online destinations to succeed, it is necessary to leverage network effects, which require continuous acquisition of new users, entry of creators, and provision of services to developers. Abstract utilized the Pudgy fan community and native live streaming platforms during the launch phase, providing a solid foundation for user growth and retention.

In order to achieve exponential growth in the future, Abstract needs to discover the true "killer application," and the first breakthrough will likely emerge from the realms of gaming and pop culture, while simultaneously attracting traffic-based creators and global brands to the platform.

At the same time, the end-user crypto sector is rapidly heating up. TON and Kaia are supported by social media platforms, while Base and BNB are backed by exchanges, and Sonenium is driven by Web2 companies. These competitors are joining the battle for mainstream adoption one after another. The "mainstream market for crypto applications" is still a blue ocean, but these diverse attempts stimulate each other, promote innovation, and accelerate the industry's journey towards mainstream acceptance.