Abstract Chain Analysis: How to Build a Consumer-Oriented Public Blockchain Ecosystem?

TL;DR

• Abstract Chain is a consumer-oriented blockchain launched in January 2025, dedicated to promoting the popularization of encryption technology and building an easily accessible and participatory platform.
• Abstract Chain provides a smooth user experience through native account abstraction and leverages the advantages of the established Pudgy Penguins and PENGU fan community to offer differentiated value with a 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 into 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 its main competitive advantages.
• Abstract Chain has currently achieved large-scale application: the number of registered wallet users is about 2 million, with approximately 100,000 active wallets daily, and an average of about 700,000 on-chain transactions per day, reflecting the high activity level of the platform.

Introduction

Abstract Chain is an Ethereum-based Layer 2 blockchain established in March 2024, utilizing zero-knowledge encryption ( zk ) technology, aimed at providing mainstream consumers with a seamless and differentiated Web3 experience. This chain employs an account abstraction mechanism, simplifying wallet setup and on-chain signing processes, thereby lowering the entry barrier. Through zk-rollup technology, Abstract offers low-cost, high-throughput on-chain transaction capabilities, ensuring scalability and security for consumer applications.

Despite the fierce competition in the blockchain ecosystem, there is still a distance to go before true mass adoption by mainstream users. Early projects like Arbitrum and Optimism have successfully addressed performance bottlenecks, attracting crypto-native users. However, to achieve what is termed "consumer-grade crypto," it is still necessary to build a Web3 platform with a low entry barrier and 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. Although some success has been achieved, this model that relies on the open ecosystems of Web2 platforms still faces challenges in mature markets such as Europe and the United States.

Abstract Chain has chosen a different path: directly embedding encryption technology into consumer applications, encouraging users to use it unconsciously.

The mainnet of Abstract will go live in January 2025, along with the launch of Portal, a gateway platform serving as an entry point for gaming and application ecosystems. Portal is not just a simple content display window; it is a highly interactive online destination that integrates live streaming, rewards, collectibles, and Spotlight( app recommendations), creating a sticky user experience. This strategy distinguishes Abstract from other chains and positions it as a core engine for growth.

Abstract's business flywheel

The development of a new chain usually begins with building a developer ecosystem, gradually increasing the on-chain locked value ( TVL ) through the development of on-chain applications and the adoption of DeFi protocols. To attract users, projects encourage participation through methods such as airdrops.

The network effects of this model mainly rely on the on-chain assets held by users. For example, Ethereum was initially dominated by the NFT craze, and Solana has recently gained popularity due to meme coins. These native assets lock users onto the chain while attracting developers to build applications around the trends. From a business perspective, this approach is similar to making customers use a specific payment card that can only be spent at certain stores.

Abstract Chain has taken a different approach. Instead of focusing on asset accumulation, it 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 gateways, and token exchanges, enabling access to 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 enables new users to quickly enter Web3, while existing users are continuously drawn back by new content.

Analogous to a shopping mall, Abstract is similar to operating a thriving large shopping center: integrating multiple stores in one place, continuously hosting performance events on a central stage, maintaining high traffic and activity, encouraging customers to keep coming back to enjoy.

The following analysis revolves around three core growth areas: user acquisition >> portal hosting >> application ecosystem driving. Together, they form the core components of the Abstract platform's business flywheel.

A. User Guide

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

Easy onboarding experience

Abstract Chain is committed to simplifying the user onboarding process by eliminating traditional barriers. With the native account abstraction feature, users can easily create an Abstract account and activate their 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. In addition, the chain employs zero-knowledge rollup technology, ensuring extremely low gas fees and high parallel processing capabilities, significantly reducing on-chain interaction costs.

After creating an account, users can immediately use all basic crypto tools through the Portal. The wallet in the upper left corner of the page supports real-time trading functions and offers deposit options including bridging and fiat deposit services for quick fund deposits. The trading section of the Portal supports native token swaps without the need to search for third-party services. These integrated features collectively lower the barrier 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 of Pudgy Penguins. Pudgy Penguins has over 3 million followers on Twitter(, Instagram, and TikTok before X), and 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 everywhere, just like Mickey Mouse in Disneyland: appearing on marketing banners, user avatars, live stream 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 the platform's functionality has greatly driven the growth of Portal---activating 1.61 million wallets within two months after the mainnet launch.

Moreover, due to the wide distribution of fans for Pudgy and PENGU, Abstract's user profile is also different from other consumer-grade crypto ecosystems like TON and Kaia. Abstract has attracted a large number of users in developed markets—17.4% of whom are from the United States, while the remaining users are mainly distributed across European and East Asian countries such as Germany, the United Kingdom, France, Japan, South Korea, Singapore, and Hong Kong. This user base is highly valuable for consumer-oriented applications, providing a strong foundation for Abstract to build a high-quality consumer ecosystem.

( B. Portal Platform

The portal platform of Abstract is called "数字主题公园)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 user stay time exceeding 7 minutes. Among Abstract global wallet ( AGW ) users, 40% return to make at least one transaction within 30 days of wallet creation, a retention rate significantly 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 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 drive game and merchandise sales, which is highly aligned with Abstract's goal of building an entertainment ecosystem.

The "Watch-to-Earn(Stream-to-Earn)" model introduced by Abstract encourages user participation through rewards, comments, gifts, and other means, where both streamers and viewers can earn tokens, rewards, or experience points(XP). Additionally, the "Follow" and "Recommend" features help build a community atmosphere, promoting user retention and social sharing.

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

Reward and Reputation System

Many crypto projects encourage early user participation through point systems, but in on-chain ecosystems, truly complete loyalty and reputation systems are still scarce. Abstract uses the XP and badge system (Badges) to build this infrastructure.

Abstract uses off-chain XP as the main incentive tool to encourage participants who meet the target behavior. Content creators can earn XP through live interaction, developers can earn XP by completing user activity tasks, and regular users can earn XP by connecting social accounts or using recommended applications.

At the same time, through the badge feature, users can showcase their achievements. Different types of badges will be issued 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 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 covers both developers and users.

Application Discovery

Portal also serves as the "app store" for the Abstract ecosystem. In the "Discover" section, it showcases outstanding applications selected by user votes, categorized by: 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 immediately without complex registration processes.

( C. Application Ecosystem

For any blockchain, ultimate success depends on whether it can cultivate a rich and diverse application ecosystem. For Abstract, its mission is to attract consumer-facing "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"(, providing developers with market support, technical guidance, and monthly subsidies. Developers can earn monthly XP rewards based on user engagement, and outstanding projects.