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 driving large-scale adoption of cryptographic technology and building an accessible and highly engaging platform.
• Abstract Chain offers a comfortable user experience brought by original account abstraction, leveraging the existing fan base of Pudgy Penguins and $PENGU to provide differentiated value through its unique user structure.
• Abstract's growth strategy revolves around building a digital entertainment theme park: it has a unique portal platform that integrates live streaming and reward systems to attract application developers to join the ecosystem.
• This live streaming platform has attracted over 10,000 broadcasters, with an average daily user participation time exceeding 7 minutes and a 30-day retention rate of 40%. The live streaming function has become one of its main competitive advantages.
• Abstract Chain has currently achieved large-scale application: the number of registered wallet users is approximately 2 million, with about 100,000 daily active wallets, and approximately 700,000 on-chain transactions per day, reflecting the platform's high activity.

Introduction

Abstract Chain was established in March 2024 and is a Layer 2 blockchain based on Ethereum, using zero-knowledge proof (zk) technology, dedicated to providing seamless and differentiated Web3 experiences for mainstream end users. This chain adopts an account abstraction mechanism, simplifying wallet setup and on-chain signing processes, lowering the entry barrier. Through zk-rollup technology, Abstract is able to provide low-cost, high-throughput on-chain transaction capabilities, ensuring scalability and security for applications aimed at end users.

The competition in the blockchain ecosystem is fierce, but there is still a distance to go before true mass mainstream user adoption. Early projects like Arbitrum and Optimism have successfully addressed performance bottlenecks, attracting crypto-native users. However, to achieve what is known as "end-user crypto," it is necessary to build a Web3 platform that combines low barriers to entry with high user retention.

Early explorations such as 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 openness of Web2 platform ecosystems, is still difficult to realize in mature markets like Europe and America.

Abstract Chain has chosen a different path: promoting the direct integration of encryption technology into applications aimed at end users, allowing users to utilize it seamlessly without even realizing it.

The mainnet of Abstract will be launched in January 2025, along with the portal platform "Portal" as the entry point for 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 becomes the core engine of its growth.

The Flywheel Effect of Abstract

The development of new chains usually starts 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 like 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 to the chain, while also encouraging developers to build applications around the trends. In a business analogy, this approach is like having 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 has built the portal platform (Portal) as a dynamic online hub designed around the following three main functions:

• Basic Services: Provide tools such as wallets, fiat entry, token exchange, 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 continuously recalled by new content.

If we compare it to a shopping mall, Abstract is like running a thriving large shopping center: integrating multiple stores in one place, continuously hosting performances on a central stage, maintaining high traffic and activity, and encouraging customers to keep coming back to enjoy.

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

A. User Guide

The early user base of Abstract largely 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 flock to Abstract, but its smooth onboarding experience shows a clear advantage in converting attention into actual users.

Simple onboarding experience

Abstract Chain is dedicated to eliminating traditional barriers and simplifying the user onboarding process. Its native account abstraction feature allows users to easily create Abstract accounts and enable wallets just like registering for a regular website account. Users do not need to manage private keys or frequently sign transactions. Account recovery or sending transactions is as simple as browsing the web or playing games. Additionally, the chain employs ZK rollup technology, ensuring extremely low gas fees and high concurrent processing capabilities, significantly reducing the cost of on-chain interactions.

After users create an account, they can immediately use all basic cryptocurrency tools through the Portal. The wallet in the upper left corner supports real-time trading functions and offers recharge options including bridging and fiat deposit services, allowing for quick fund inflow. 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 barriers to entry, enabling 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 prior to X), as well as 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 as ubiquitous as Mickey Mouse in Disneyland: appearing in marketing banners, user avatars, live stickers, and more. For $PENGU holders, the Portal also has practical uses—they can tip during live broadcasts using $PENGU tokens, which is one of the use cases for $PENGU on Abstract.

The synergy between this IP and platform functions has greatly promoted the growth of Portal---161,000 wallets were activated within 2 months after the mainnet launch.

Moreover, due to the widespread 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 attracts many users from developed markets—of which 17.4% are from the United States, while the remaining users are mainly distributed in European and East Asian countries such as Germany, the United Kingdom, France, Japan, South Korea, Singapore, Hong Kong, etc. This user group is very valuable for end-user-oriented applications and provides 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" ) 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 remarkable. 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 users of the Abstract Global Wallet ( AGW ), 40% returned to trade at least once within 30 days of creating their wallet, a retention rate that is far higher than 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 promote game and merchandise sales, aligning closely with Abstract's goal of building an entertainment ecosystem.

The "Watch to Earn" ( Stream-to-Earn ) model introduced in the abstract encourages user participation through rewards, comments, and gifts, 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 user retention and social sharing.

As of the end of April 2025, Portal has gathered over 1,000 broadcasters, with a total viewing time exceeding 500,000 hours. Some top broadcasters can receive tips of up to 9 ETH per live session. The top 100 broadcasters account for a significant portion of the platform's tip revenue, with individual monthly incomes between $4,000 and $5,000, and more than 4,000 interactive users.

Reward and Reputation System

Many crypto projects encourage early user participation through point systems, but a truly complete loyalty and reputation system in on-chain ecosystems is 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 interactions, 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 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.

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 throughout the Abstract ecosystem, developing into a loyalty and reputation framework that covers the entire ecosystem, aimed at developers and users.

Application Discovery

Portal also serves as the "app store" of the Abstract ecosystem. The "Discover" section showcases high-quality applications selected by user votes, categorized into: digital collectibles, gaming, NFTs, social, AI, trading, prediction markets, and more. Users can log in to these applications directly with their Abstract ID, allowing them to start experiencing immediately without a cumbersome registration process.

( C. Application Ecosystem

For any blockchain, ultimate success depends on the ability to 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 the EVM) Ethereum Virtual Machine###, supporting the migration of existing Ethereum smart contracts, and also facilitates cross