TL;DR

Abstract Chain was launched in January 2025. It is a consumer-centric blockchain dedicated to promoting the popularization of encryption technology and creating an easy-to-access and engaging platform.
Abstract Chain has a smooth user experience brought by native account abstraction, and leverages the established advantages of Pudgy Penguins and PENGU fan groups to provide differentiated value with its unique user structure.
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 to join the ecosystem.
As of the end of May this year, the live broadcast platform has attracted more than 10,000 anchors, with an average daily user participation time of more than 7 minutes and a 30-day retention rate of 40%. The live broadcast function has become one of its main competitive advantages.
Abstract Chain has now achieved large-scale application: there are nearly 2 million registered wallet users, about 100,000 daily active wallets, and about 700,000 daily on-chain transactions, reflecting the extremely high activity of the platform.

introduction

Abstract Chain was founded in March 2024. It is a Layer 2 blockchain based on Ethereum that uses zero-knowledge encryption (zk) technology and is committed to providing a seamless and differentiated Web3 experience for mainstream consumers. The chain uses an account abstraction mechanism to simplify wallet settings and on-chain signature processes, lowering the entry threshold. Through zk-rollup technology, Abstract provides low-cost, high-throughput on-chain transaction capabilities, bringing scalability and security to consumer applications.

Despite the fierce competition in the blockchain ecosystem, there is still some distance to go before it can be truly adopted by large-scale mainstream users. Early projects such as Arbitrum and Optimism successfully solved the performance bottleneck and attracted crypto-native users. However, to achieve the so-called "consumer-grade Crypto", it is necessary to create a Web3 platform with both low barriers to entry and high stickiness.

Early explorations such as TON and Kaia have attempted to reduce user acquisition costs by integrating Web3 into mainstream social platforms such as Telegram and LINE. Although some results have been achieved, this model that relies on the openness of the Web2 platform ecosystem is still difficult to implement in mature markets such as Europe and the United States.

Abstract Chain has chosen another path: by embedding encryption technology directly into consumer applications, it promotes direct and seamless use on the user side. Abstract's mainnet will be launched in January 2025, and the portal platform Portal will be launched at the same time as the entrance to its game and application ecosystem. Portal is not only a content display window, but also a highly interactive online destination that integrates live broadcasts, rewards, collectibles, and Spotlight (application recommendations) to create a sticky user experience. This strategy distinguishes Abstract from other chains and becomes the core engine of its growth.

Abstract Chain Panoramic Analysis: How to Promote the Public Chain Ecosystem to Mainstream Users?

Abstract's Business Flywheel

The development of a new chain usually starts with the establishment of a developer ecosystem, and gradually increases the on-chain locked volume (TVL) by developing on-chain applications and introducing DeFi protocols. In order to attract users, project parties often incentivize participation through airdrops and other means.

The network effects of these models mainly rely on the on-chain assets held by users. For example, Ethereum was driven by the NFT craze in its early days, while Solana has recently become popular due to meme coins. These native assets bind users to the chain and drive developers to build applications around trends. If we use a merchant analogy, this approach is more like attracting customers to use a specific payment card, which can only be used in certain stores.

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

Basic services: wallets, fiat currency entry, token exchange and other tools, providing the ability to enter the ecosystem;
User interaction: Live broadcast and reward center enhance user stickiness;
Project Discovery: The Spotlight section guides users to explore new content.

This system ensures that new users can quickly access Web3, while old users continue to be attracted to return with new content.

To use the shopping mall as an analogy, Abstract is more like running a thriving large shopping mall: integrating multiple stores in one place and continuously hosting performances on the central stage to maintain high traffic and activity, so that customers continue to return and enjoy themselves.

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

Abstract Chain Panoramic Analysis: How to Promote the Public Chain Ecosystem to Mainstream Users?

A. User Guidance

Abstract's initial user base was largely due to its association with the Pudgy Penguins IP, as well as its extremely simple and easy-to-use design concept. Although fans of Pudgy and PENGU are still pouring into Abstract, its smooth onboarding experience gives this chain a significant advantage in converting attention into real users.

Easy to use experience

Abstract Chain is committed to simplifying the user onboarding process by removing traditional barriers. Its native account abstraction function allows users to easily create an Abstract account and enable a wallet just like registering a regular website account. Users do not need to manage private keys or frequently sign transactions. Account retrieval and transfer operations are as intuitive as browsing the web or playing games. In addition, the chain uses zero-knowledge rollup technology to ensure extremely low gas fees and high concurrency, which greatly reduces the cost of on-chain interactions.

Once a user creates an account, they can immediately use all basic crypto tools through Portal. The wallet located in the upper left corner of the page supports real-time trading functions and provides recharge options, including bridging and fiat currency deposit services, for quick deposit of funds. Portal's trading section supports native currency exchange without the need to search for additional third-party services. Together, these integrated features lower the barrier to use and allow users to access the on-chain world without any obstacles.

Pudgy fans as early user base

Abstract leverages the large and active fan community of Pudgy Penguins. Pudgy Penguins has more than 3 million fans on X (formerly Twitter), Instagram and TikTok, and more than 500,000 PENGU holders, providing a ready-made user pool for the Abstract chain. In Abstract's Portal, Pudgy Penguins' image is everywhere, like Mickey Mouse in Disneyland: it appears in marketing banners, user avatars, and live broadcast stickers. For PENGU holders, Portal also has practical uses - they can use PENGU Token to reward live broadcasts, which is one of the scenarios where PENGU can be used on Abstract.

This synergy between IP and platform functionality has greatly promoted the growth of Portal - 1.61 million wallets were activated within two months of the mainnet launch. More importantly, due to the wide distribution of Pudgy and PENGU fans, Abstract's user profile is also different from other consumer-grade crypto ecosystems such as TON and Kaia. Abstract has attracted a large number of users from developed markets - 17.4% of them are from the United States, and the rest are mainly distributed in Europe and East Asian countries, including Germany, the United Kingdom, France, Japan, South Korea, Singapore and Hong Kong. This user group is extremely valuable for consumer applications and provides a strong foundation for Abstract to create a high-quality consumer ecosystem.

Abstract Chain Panoramic Analysis: How to Promote the Public Chain Ecosystem to Mainstream Users?

 Source: Abstract Official

B. Portal Platform

Abstract’s portal platform is called “Digital Theme Park of Fun”. It is not only a place for users to discover popular applications and creators, but also a core interface for users to manage assets and rewards.

Early data shows that Portal is performing well. As of March 2025, Portal has more than 600,000 monthly active users (MAU) and 100,000 daily active users (DAU), with an average daily user stay of more than 7 minutes. 40% of Abstract's global wallet (AGW) users will return to make at least one transaction within 30 days of creating a wallet, a retention rate far exceeding the industry average.

Abstract Chain Panoramic Analysis: How to Promote the Public Chain Ecosystem to Mainstream Users?

Live streaming

Live streaming is a popular medium among young people around the world. Web2 platforms such as Twitch attract 240 million unique users per month from all over the world. For Abstract, live streaming is not only a reason for users to return, but also a way to increase platform stickiness and monetization potential. Live streaming has been proven to promote game and merchandise sales, which is highly consistent with Abstract's goal of building an entertainment ecosystem.

Abstract Chain Panoramic Analysis: How to Promote the Public Chain Ecosystem to Mainstream Users?

Abstract's "Stream-to-Earn" model encourages users to participate in interactions, including tips, comments, gifts, etc., so that both anchors and viewers can earn tokens, rewards or experience points (XP). In addition, the "Follow" and "Recommend" functions help build a community atmosphere and promote users' continuous visits and social communication.

As of the end of April 2025, Portal has accumulated more than 1,000 anchors, with a total live viewing time of more than 500,000 hours. Some top anchors even received rewards of up to 9 ETH at a time. The top 100 anchors account for a significant share of the platform's reward income, with personal monthly income ranging from $4,000 to $5,000, and more than 4,000 interactive users.

Reward and reputation system

Many crypto projects use a points mechanism to incentivize early user participation, but truly complete loyalty and reputation systems are still scarce in the on-chain ecosystem. Abstract uses XP and badges to build such an infrastructure.

Abstract Use off-chain XP as the main incentive tool to encourage participants who meet the target behavior. Content creators can get XP through live broadcast interaction, developers can get XP by completing user active tasks, and ordinary users can get XP by binding social accounts or using recommended applications.

At the same time, the badge function allows users to showcase their achievements. Depending on the level of behavior and task, different types of badges will be minted as NFTs on the chain or displayed in the App, becoming part of the user's identity and gradually forming a complete reputation system.

Currently, the system is still in its early stages and its functions are limited to Portal. However, in the future, the XP and badge system is expected to be expanded to the entire Abstract ecosystem and develop into a loyalty and reputation framework covering the entire ecosystem, serving both developers and users.

Application Discovery

Portal also plays the role of "app store" in the Abstract ecosystem. The "Discover" section displays high-quality applications voted by users and is divided into sections according to categories, including: digital collections, games, NFTs, social networking, AI, transactions, and prediction markets. Users can log in to these applications directly with Abstract ID and start experiencing them immediately without the tedious registration process.

C. Application Ecosystem

For any blockchain, the ultimate success depends on whether it can incubate a rich and diverse application ecosystem. For Abstract, its mission is to attract consumer "fun" applications from Web3 projects and mainstream institutions.

Web3 Projects

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 a "Builder -in-Residence Program" to provide developers with market support, technical guidance and monthly allowances. Developers can receive monthly XP rewards based on user engagement, and outstanding projects have the opportunity to receive additional incentives. The live broadcast platform will also promote featured games through embedded links to divert traffic to the application.

Games are an important entry point for attracting Web2 users to the Web3 world. Among the top ten popular applications on Abstract, eight are gaming products. Popular games include Pudgy World, Bigcoin , BTC Mining Game, adventure games such as Onchain Heroes and LOL Land , Pudgy IP games launched by YGG, and community projects such as Gigaverse.

By cooperating with NFT platforms such as Magic Eden and OpenSea, Abstract has realized the buying, selling and trading of game assets, further enriching the game ecosystem. Currently, more than 120 projects have been deployed on Abstract, covering social applications such as " Gacha ", trading platforms such as " BuzzFun " and " Myriad ", and games such as " Gigaverse ", " Onchain Heroes ", " Multiplier ", etc.

Abstract’s strong user base enables new projects to quickly gain attention. For example, Duper and Witty attracted 50,000 users within just a few days of launch, and the prediction market Myriad attracted nearly 500,000 users within two months of launch. These success stories have greatly boosted developer confidence and inspired more teams to invest in building.

Abstract Chain Panoramic Analysis: How to Promote the Public Chain Ecosystem to Mainstream Users?

Mainstream institutions

Abstract is actively working with consumer-facing organizations, such as music and sports brands, to migrate their Web3 products to the chain. For example, digital collections such as NBA Top Shots will be issued in the form of NFTs, allowing fans to buy, hold and trade. These sports and music fans are highly consistent with Abstract's consumer positioning.

For institutions looking for on-chain partners, Abstract has natural advantages - Ethereum-level security, user-friendly interface, and low-threshold access methods are its core selling points. Although the specific cooperation has 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 young people of Generation Z and Generation A, combining classic F1 moments with digital ownership and interactive experience. The project transforms viewers from passive viewers to active participants. It is a multi-year strategic deployment that aims to attract young people to transform their interest into a sense of belonging and even "shareholder" awareness through collectible and interactive methods on the chain.

Core Concept: Consumer-Grade Encryption

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

They believe that the best way to guide the first 50 million users into the crypto world is to focus on "non-essential consumption" scenarios, that is, activities that bring fun, stimulate emotional resonance, and enhance the experience through crypto technology.

Abstract Chain is the main carrier platform for this consumer crypto vision. The unique characteristics of blockchain technology - digital ownership, anti-censorship, and borderless payment capabilities - enable unprecedented user experience in consumer scenarios such as games, social networking, memes, and collectibles. Abstract will fully unleash this potential through user-centric product design, making the daily lives of millions of users more interesting.

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

At the same time, this strategy of "driven growth based on non-rigid consumption" also means that Abstract may deliberately ignore the technology stacks valued by some mainstream blockchains, such as advanced DeFi modules, DePin (decentralized infrastructure network), RWA (real world assets), etc. Therefore, users should not expect Abstract to push up TVL as quickly as DeFi-centric chains.

Abstract Chain Panoramic Analysis: How to Promote the Public Chain Ecosystem to Mainstream Users?

Initial chain performance

In July 2024, Abstract officially stepped out from behind the scenes and announced the completion of a $11 million financing led by Founders Fund, and simultaneously launched a public test network (Testnet). Subsequently, the main network was officially launched on January 27, 2025, with more than 120 applications deployed in the first batch.

As of the end of May 2025, Abstract has created nearly 2 million wallets, deployed a total of 1.4 million contracts, and the total value guaranteed (TVS) on the chain has reached 53.4 million US dollars. In early March, the daily transaction volume once reached 1.5 million, and then stabilized at around 500,000; as of May, the cumulative number of on-chain transactions has reached 60 million.

The platform 's activity within 30 days also showed strong momentum: the total revenue of the top five applications reached $1.85 million, and the total transaction volume of NFT exceeded $10.4 million. Abstract Chain has not yet released a native token. Since zk-rollup technology itself does not require on-chain tokens to pay gas fees, the future Abstract token will need to break away from the traditional model in terms of functional design and give it a new practical value.

Abstract Chain Panoramic Analysis: How to Promote the Public Chain Ecosystem to Mainstream Users?

Comparison of on-chain indicators

Abstract's go-to-market strategy (GTM) focuses on consumer adoption rather than traditional DeFi lock-in volume (TVL) or developer ecosystem share. Therefore, its target user groups include NFT collectors, players, anchors, and casual users of social platforms.

From February to May 2025, Abstract's TVS (Total Value Secure) increased by 150%, from $20 million to $50 million. The peak number of active addresses reached 2 million, and then stabilized at about 500,000. The cumulative transaction volume reached 60 million during the same period. Abstract's initial projects focused on two vertical fields, NFT and games, accurately echoing its "consumer-oriented" positioning, and striving to seize the on-chain consumer market.

Compared with other chains, in the first three months after the launch of the mainnet, Abstract's growth has surpassed ZKsync Era (a leading zk Ethereum extension network), and its number of active addresses and transaction volume are close to TON. Mature rollups such as Base and Arbitrum provide Abstract with benchmark EVM success cases, becoming its target to catch up.

Abstract Chain Panoramic Analysis: How to Promote the Public Chain Ecosystem to Mainstream Users?

Conclusion

The Abstract team pioneered a consumer-centric crypto ecosystem model to push Web3 towards the mainstream. Their vision of "consumer-grade crypto" has been proven in the successful expansion of Pudgy Penguins IP, and now it has been further amplified into a lively and continuously operating online gathering place through the Abstract chain.

To be successful, online destinations must rely on network effects, which requires constantly attracting new users, connecting creators, and serving developers. In its early stages, Abstract relied on the Pudgy fan base and native live streaming platform to provide a solid foundation for its user growth and retention.

To achieve exponential expansion in the future, Abstract needs to discover true “killer apps,” most likely starting with games and pop culture, while also attracting traffic-generating creators and global brands to its platform.

At the same time, the consumer crypto market is also heating up rapidly. TON and Kaia are backed by social media platforms, Base and BNB are supported by exchanges, and Sonenium is driven by institutions. These competitors are joining the battle for mainstream adoption. Although "crypto applications in the mainstream market" are still a blue ocean, these diverse attempts are inspiring each other, stimulating innovation, and accelerating the pace of the entire industry towards the mainstream.

Pudgy Penguins CEO: Abstract mainnet will be launched next Monday

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