Abstract Chain Panorama Analysis: How to Build a Public Chain Ecosystem for End Users?

Overview

• Abstract Chain is set to launch in January 2025 as a user-centric blockchain aimed at promoting the large-scale adoption of cryptographic technology and building an accessible and engaging platform.
• Abstract Chain offers a smooth user experience brought by native account abstraction, leveraging the established fan base of Pudgy Penguins and $PENGU to provide differentiated value through its unique user structure.
• Abstract's growth strategy revolves around creating a digital entertainment theme park: having its own portal platform, integrating live streaming and reward systems, and attracting application developers to join the ecosystem.
• This live streaming platform has attracted over 10,000 broadcasters, with an average daily user engagement 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 applications: approximately 2 million registered wallet users, about 100,000 daily active wallets, and an average of 700,000 on-chain transactions per day, reflecting the platform's high level of activity.

Introduction

Abstract Chain was established in March 2024 and is a Layer 2 blockchain based on Ethereum, utilizing zero-knowledge proof (zk) technology, dedicated to providing mainstream end users with a seamless and differentiated Web3 experience. The chain adopts an account abstraction mechanism, simplifying wallet setup and on-chain signing processes, thereby 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 true large-scale mainstream user adoption. Early projects like Arbitrum and Optimism have successfully addressed performance bottlenecks, attracting crypto-native users. However, to achieve what is called "end-user Crypto", it is necessary to establish a low-threshold and highly adhesive Web3 platform.

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 results, but this model of relying on the openness of Web2 platform ecosystems is still difficult to implement in mature markets like Europe and the United States.

Abstract Chain has chosen a different path: to promote the direct embedding of cryptographic technology into end-user applications, allowing users to use it seamlessly.

The mainnet of Abstract will go live in January 2025, along with the launch of the portal platform "Portal" as an entry point for games and application ecosystems. Portal is not only a content showcase but also a highly interactive online destination, integrating live broadcasts, rewards, collectibles, and Spotlight( app recommendations), creating a sticky user experience. This strategy differentiates Abstract from other chains and becomes the core engine of its growth.

Abstract Flywheel

The development of new chains usually starts with building a developer ecosystem, gradually increasing the on-chain locked value (TVL) through on-chain application development and DeFi protocols. To attract users, projects often encourage 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 recently gained popularity due to meme coins. These native assets bind users to the chain while encouraging developers to build applications around the trends. From a business perspective, this approach is akin to 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 instead builds 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: Increase user engagement through live streaming and the rewards center
• Project Discovery: Guiding users to explore new content through the Spotlight section

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

If we use a shopping mall as a comparison, the operation of Abstract is akin to a thriving large shopping center: integrating multiple shops in one place, with a central stage continuously hosting performances, maintaining high traffic and activity, allowing customers to keep coming back for enjoyment.

The following analysis will focus on three key growth areas: user traffic >> portal engagement >> application ecosystem drive. Together, these form 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 gives the chain a significant advantage in converting attention into actual users.

Simple onboarding experience

Abstract Chain is committed to eliminating traditional barriers and simplifying the onboarding process for users. Its native account abstraction feature allows users to easily create Abstract accounts and activate wallets just like registering for a regular website account. Users do not need to manage private keys, nor do they need to frequently sign transactions. Account recovery or transfer operations feel as simple as browsing the web or playing games. Additionally, the chain utilizes ZK Rollup technology, ensuring extremely low gas fees and high parallel 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 provides recharge options, including cross-chain bridges and fiat deposit services, enabling quick fund deposits. 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, 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 owned by Pudgy Penguins. Pudgy Penguins have over 3 million followers on X(, Twitter), Instagram, and TikTok, with more than 500,000 $PENGU token holders, providing a ready-made user pool for the Abstract chain.

In the Abstract Portal, the image of Pudgy Penguins is as ubiquitous as Mickey Mouse in Disneyland: appearing on marketing banners, user avatars, live streaming 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 platform functions has greatly promoted the growth of Portal---1.61 million wallets were activated within two months after the mainnet launch.

More importantly, due to the wide distribution of Pudgy and $PENGU fans, the user profile of Abstract is also different from other end-user-focused crypto ecosystems like TON and Kaia. Abstract attracts a large number of users from developed markets—17.4% of whom are from the United States, with the remaining users mainly distributed across European and East Asian countries such as ( Germany, the United Kingdom, France, Japan, South Korea, Singapore, and Hong Kong, etc. ). This user group is very valuable for end-user 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 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 daily user session length of over 7 minutes. Among users of the Abstract Global Wallet ) AGW (, 40% returned to make at least one transaction within 30 days of creating their wallets, a retention rate that is significantly higher than the industry average.

Live streaming feature

Live streaming is a medium favored by young people around the world. Web2 platforms like Twitch attract 240 million unique users each month. For Abstract, live streaming is not only a reason for user retention but also enhances platform stickiness and monetization potential. Live streaming has been proven to boost game and merchandise sales, aligning closely with Abstract's goal of building an entertainment ecosystem.

The "Watch and 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 (. In addition, the "Follow" and "Recommend" features help build a community atmosphere, promoting continuous user engagement and social sharing.

As of the end of April 2025, Portal has gathered over 1,000 broadcasters, with a total viewing time of over 500,000 hours. Some top broadcasters can earn up to 9 ETH in a single live stream from tips. The top 100 broadcasters account for a significant portion of the platform's tip revenue, with individual monthly incomes ranging from $4,000 to $5,000, and having over 4,000 interactive users.

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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, the system is still in its early stages, with functionalities limited to within the Portal. However, in the future, the XP and badge system is expected to expand to the entire Abstract ecosystem, evolving into a loyalty and reputation framework that covers the whole ecosystem, aimed at 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, categorized into: digital collectibles, games, NFTs, social, AI, trading, prediction markets, etc. Users can log in to these applications directly using their Abstract ID, allowing them to start experiencing without a cumbersome registration process.

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) 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" end-user applications from Web3 projects and mainstream enterprises.

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 stipends. Developers can earn XP rewards monthly based on user engagement, and outstanding projects have the opportunity to receive additional incentives. The live streaming platform also promotes featured games through embedded links to drive traffic to applications.

Games are an important entry point for bringing Web2 users into the Web3 world. Among the top 10 applications ranked by Abstract, already