Abstract Chain Panorama Analysis: How to Bring Public Chain Ecology to Mainstream Users?

Author: Animoca Research

TL;DR

Abstract Chain will launch in January 2025 and is a consumer-centric blockchain dedicated to promoting the widespread adoption of cryptocurrency technology, creating an easily accessible and engaging platform.

Abstract Chain offers a smooth user experience brought by native account abstraction and leverages the established advantages of the Pudgy Penguins fan base and PENGU, providing differentiated value through its unique user structure.

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.

As of the end of May this year, the live streaming platform has attracted over 10,000 broadcasters, with an average daily user engagement time of more than 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 now achieved large-scale application: nearly 2 million wallet registered users, about 100,000 daily active wallets, and approximately 700,000 on-chain transactions daily, reflecting a very high level of platform activity.

Introduction

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

Despite the fierce competition in the blockchain ecosystem, there is still some distance to go before true mass mainstream user adoption is achieved. Early projects like Arbitrum and Optimism successfully addressed performance bottlenecks and attracted crypto-native users. However, to achieve what is referred to as "consumer-grade Crypto," a Web3 platform that combines low barriers to entry with high user retention needs to be built.

TON and early explorations like Kaia attempted to reduce user acquisition costs by integrating Web3 into mainstream social platforms like Telegram and LINE. Although some progress was made, this model, which relies on the open ecosystems of Web2 platforms, still faces challenges in mature markets like Europe and the United States.

Abstract Chain has chosen a different path: by directly embedding encryption technology into consumer applications, it promotes a seamless user experience. The mainnet of Abstract will go live in January 2025, along with the launch of the portal platform Portal, which serves as the entry point for its gaming and application ecosystem. Portal is not only a content display window but also a highly interactive online destination, integrating live streaming, rewards, collectibles, and Spotlight (application recommendations), creating a sticky user experience. This strategy differentiates Abstract from other chains and becomes the core engine of its growth.

The business flywheel of Abstract

The development of a new chain usually starts with establishing a developer ecosystem, gradually increasing the on-chain locked value (TVL) by developing on-chain applications and introducing DeFi protocols. To attract users, project parties often incentivize 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 has recently gained popularity due to meme coins. These native assets bind users on-chain while driving developers to build applications around trends. If we use merchants as a comparison, this approach is more like attracting customers to use a specific payment card that can only be spent in certain stores.

Abstract Chain takes a different path. It does not focus on asset accumulation, but rather transforms the portal platform into a dynamic online center, designed around the following three main functions:

Basic services: wallet, fiat entry, token exchange and other tools, providing the ability to enter 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 ensures that new users can quickly access Web3, while existing users are continuously attracted back by new content.

Using a shopping mall as a comparison, Abstract is more like operating a thriving large shopping center: integrating multiple stores in one place and continuously hosting performances on a central stage to maintain high foot traffic and activity, encouraging customers to return and enjoy.

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

A. User Guide

The initial user base of Abstract largely benefits from its association with the Pudgy Penguins IP, complemented by an extremely easy-to-use design concept. Although fans of Pudgy and PENGU continue to flock to Abstract, its smooth onboarding experience gives this chain a significant advantage in converting attention into real users.

Easy to get started 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 activate 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. Moreover, the on-chain use 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 cryptocurrency tools through Portal. The wallet located in the upper left corner of the page supports real-time transaction functions and offers deposit options, including bridging and fiat deposit services, for quick fund deposits. The trading section of Portal supports native currency exchanges without the need to search for third-party services. These integrated features collectively lower the barrier to entry, allowing users to seamlessly access the on-chain world.

Pudgy fans as an early user base

Abstract leverages the large and active fan community of Pudgy Penguins. Pudgy Penguins has over 3 million fans across X (formerly Twitter), Instagram, and TikTok, along with over 500,000 PENGU holders, providing a ready-made user pool for Abstract. In Abstract's Portal, the image of Pudgy Penguins is omnipresent, much 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 the PENGU Token, which is one of the scenarios where PENGU can be used on Abstract.

The synergy between this IP and the platform's functions has greatly facilitated the growth of Portal—within two months of the mainnet launch, it attracted 1.61 million wallet activations. More importantly, due to the widespread fan distribution 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 from developed markets—17.4% of them are from the United States, while the remaining users are mainly distributed across European and East Asian countries, including Germany, the United Kingdom, 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.

Source: Abstract Official

B. Portal Platform

The portal platform of Abstract is called "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 indicates that Portal performs impressively. 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 the global wallet (AGW) users of Abstract, 40% return to conduct at least one transaction within 30 days of creating their wallet, which far exceeds the industry average retention rate.

Live streaming feature

Live streaming is a medium that is highly favored by young people around the world. Web2 platforms like Twitch attract 240 million unique users monthly from all over the globe. 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 promote game and merchandise sales, which is highly aligned with Abstract's goal of creating an entertainment ecosystem.

The "Stream-to-Earn" model launched by Abstract encourages users to participate in interactions, including tipping, commenting, and gifting, 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, driving users to continue visiting and sharing socially.

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

Reward and Reputation System

Many crypto projects incentivize early user participation through points mechanisms, but truly complete loyalty and reputation systems are still scarce in on-chain ecosystems. Abstract builds such infrastructure with the XP and Badge systems.

Abstract uses off-chain XP as the primary incentive tool to encourage participants who meet target behaviors. Content creators can gain XP through live interactions, developers can earn XP by completing user engagement tasks, and ordinary users can obtain XP by 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 part of the user's identity and gradually forming a complete reputation system.

The system is currently still in its early stages, with functions limited to the Portal. However, in the future, the XP and badge system is expected to expand to the entire Abstract ecosystem, developing into a comprehensive loyalty and reputation framework that serves 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 and categorizes them into sections, including: digital collectibles, games, NFTs, social, AI, trading, and prediction markets. Users can log in to these applications directly using their Abstract ID and start experiencing them immediately, without the need for a complicated registration process.

C. Application Ecosystem

For any blockchain, ultimate success 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 has launched the "Builder-in-Residence Program" to provide developers with market support, technical guidance, and a monthly stipend. 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 on Abstract, eight are game-related products. Popular games include "Pudgy World," "Bigcoin," and "BTC Mining Game," adventure titles such as "Onchain Heroes" and "LOL Land," as well as the Pudgy IP game launched by YGG, and community projects like "Gigaverse."

By collaborating with NFT platforms such as Magic Eden and OpenSea, Abstract has enabled the buying and trading of game assets, further enriching the gaming ecosystem. Currently, more than 120 projects have been deployed on Abstract, covering social applications like "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 their launch; the prediction market "Myriad" attracted nearly 500,000 users within two months of going live. These success stories greatly boosted developer confidence and motivated 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 onto the blockchain. For example, digital collectibles like NBA Top Shots are issued in the form of NFTs, allowing fans to purchase, hold, and trade them. These sports and music enthusiasts align perfectly with Abstract's consumer positioning.

For institutions looking for on-chain partners, Abstract has inherent advantages - Ethereum-level security, a user-friendly interface, and low-threshold access methods are all its core selling points. Although specific collaborations have not yet been officially announced, once launched, it is expected to bring a large number of mainstream Web3 users to Abstract, allowing them to truly immerse themselves in the on-chain experience.

Recently, Oracle Red Bull Racing launched an on-chain fan interaction project called In the Moment on Abstract, targeting Generation Z and Generation Alpha. This project combines classic F1 moments and introduces digital ownership and interactive experiences. It transforms viewers from passive spectators into active participants, representing a multi-year strategic initiative aimed at attracting young people to convert their interests into a sense of belonging and even a "shareholder" mentality through collectible and interactive on-chain methods.

Core Concept: Consumer-Level Cryptocurrency

Abstract co-founder Luca Netz clearly stated: Abstract's mission is to create "consumer-grade crypto" - that is, to build a large-scale popularization path for "blockchain applications that serve the daily lives of billions of people and meet their individual needs."

They believe that the best way to guide the first 50 million users into the world of cryptocurrency is to focus on "non-essential consumption" scenarios, which are activities that bring joy, evoke emotional resonance, and can enhance the experience through blockchain technology.

Abstract Chain is the main platform for this vision of consumer crypto. The unique characteristics of blockchain technology—digital ownership, censorship resistance, and borderless payment capabilities—enable unprecedented user experiences in consumption scenarios such as gaming, social media, meme culture, and collectibles. Abstract will fully unleash this potential through user-centered product design, making the daily lives of millions of users more enjoyable.

As Michael Lee, co-founder and CEO of Abstract, stated, this generation of users has completely transformed the entertainment, music, and luxury industries: transitioning from publishers to broadcasters, from viewers to athletes, from businesses to creators, and shifting from price tags to cultural value. Abstract's mission is to return "happiness, ownership, and creativity" to everyone and make all of this accessible.

At the same time, this strategy of "growth driven by non-essential consumer demand" also means that Abstract may deliberately overlook certain tech stacks valued by mainstream blockchains, such as advanced DeFi modules, DePin (decentralized infrastructure network), RWA (real-world assets), etc. Therefore, users should not expect Abstract to rapidly increase TVL like DeFi-centric chains.

Initial Chain Performance

In July 2024, Abstract officially stepped into the spotlight, announcing the completion of a $11 million funding round led by Founders Fund, and simultaneously launching the testnet. Subsequently, the mainnet officially went live on January 27, 2025, with over 120 applications deployed in the first batch.

By May 2025, Abstract has created nearly 2 million wallets, with a total of 1.4 million contracts deployed, and a total value secured (TVS) reaching 53.4 million USD. At the beginning of March, the daily trading volume once reached 1.5 million transactions, and later stabilized at around 500,000 transactions; by May, the cumulative number of on-chain transactions has reached 60 million.

The platform's activity over the past 30 days has also shown strong momentum: the total revenue of the top five applications reached $1.85 million, and the total trading volume of NFTs surpassed $10.4 million. Abstract Chain has not yet released a native token. Since the zk-rollup technology itself does not require an on-chain token to pay gas fees, the future Abstract token will need to break away from traditional models in its functional design, giving it new practical value.

On-chain indicator comparison

Abstract's market strategy (GTM) focuses on consumer adoption rather than traditional DeFi metrics like Total Value Locked (TVL) or developer ecosystem share. As a result, its target user base includes NFT collectors, gamers, streamers, and casual users on social platforms.

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

Compared to other chains, in the first three months after the mainnet launch, Abstract's growth has surpassed that of ZKsync Era (a leading zk Ethereum scaling network), with its number of active addresses and transaction volume approaching that of TON. Mature rollups like Base and Arbitrum provide Abstract with successful EVM benchmarks to aim for.

Conclusion

Abstract team is the first to propose a "consumer-centric" model for building a crypto ecosystem, aimed at advancing Web3 into the mainstream. Their vision, termed "consumer-grade crypto," has been validated through the successful expansion of the Pudgy Penguins IP, and is now further amplified into a vibrant, continuously operating online hub through the Abstract chain.

Online destinations must leverage network effects to succeed, which requires continuously attracting new users, engaging creators, and serving developers. Abstract has established a solid foundation for user growth and retention by utilizing the Pudgy fan base and the native live streaming platform in its initial stage.

In the future, to achieve exponential expansion, Abstract needs to explore real "killer applications," which are likely to break through first in the fields of gaming and popular culture, while attracting traffic-oriented creators and global brands to connect to its platform.

At the same time, the crypto consumption sector is rapidly heating up. TON and Kaia are backed by social media platforms, while Base and BNB have exchange support, and Sonenium is driven by institutions. These competitors are all joining the battle for mainstream adoption. Although "crypto applications in the mainstream market" still represent a blue ocean, these diverse attempts are inspiring each other, sparking innovation, and accelerating the entire industry's march toward mainstream.