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

TL;DR

• Abstract Chain is a consumer-centric blockchain launched in January 2025, dedicated to promoting the widespread adoption of cryptocurrency technology and building an accessible and participatory platform.
• Abstract Chain provides a seamless user experience through native account abstraction and leverages the established Pudgy Penguins and PENGU fan community to offer a unique user base.
• 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 into the ecosystem.
• This live streaming platform has attracted over 10,000 streamers, with an average daily user engagement time exceeding 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, daily active wallets are about 100,000, and the average daily on-chain transactions are about 700,000, reflecting the high activity of the platform.

Introduction

Abstract Chain is a layer two blockchain based on Ethereum, established in March 2024, which utilizes zero-knowledge encryption (zk) technology, aiming to provide mainstream consumers with a seamless and differentiated Web3 experience. The chain adopts an account abstraction mechanism that simplifies wallet setup and on-chain signing processes, lowering the entry barrier. Through zk-rollup technology, Abstract is able to offer low-cost, high-throughput on-chain transaction capabilities, ensuring scalability and security for consumer applications.

Although the blockchain ecosystem is highly competitive, there is still a distance to true widespread mainstream user adoption. Early projects like Arbitrum and Optimism have successfully addressed performance bottlenecks, attracting crypto-native users. However, to achieve what is referred to as "consumer-grade cryptocurrency," it is necessary to build a Web3 platform with low entry barriers and high user engagement.

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

Abstract Chain has chosen a different path: directly embedding cryptographic technology into consumer applications, encouraging users to use it directly without realizing it.

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

The business flywheel of Abstract

The development of a new chain typically starts by building a developer ecosystem, gradually increasing the on-chain locked value ( TVL ) through the development of on-chain applications and the deployment of DeFi protocols. To attract users, projects will 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, while Solana has recently gained popularity due to meme coins. These native assets bind users on-chain while attracting developers to build applications around trends. In a business analogy, this method is similar to having customers use a specific payment card that can only be spent at certain stores.

Abstract Chain takes a different approach. It is not centered around asset accumulation, but instead builds the portal platform (Portal) as a dynamic online hub designed around three main functions:

• Basic services: Provide tools such as wallets, fiat entry, token exchange, etc., empowering 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 allows new users to quickly engage with Web3, while existing users are continually attracted back by new content.

Metaphorically likened to a shopping mall, the operation of Abstract is similar to a thriving large shopping center: integrating multiple stores in one place, continuously hosting performances on a central stage, maintaining high traffic and activity, allowing customers to return repeatedly to enjoy.

The following analysis focuses on 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 largely relies on its association with the Pudgy Penguins IP and its extremely simple and user-friendly design concept. Although fans of Pudgy and PENGU continue to flock to Abstract, its smooth onboarding experience gives the chain a significant advantage in converting interest into actual users.

Easy entry 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, nor do they need to sign transactions frequently. Account recovery and transfer operations are as intuitive as browsing the web or playing games. Additionally, the chain employs zero-knowledge rollup technology, ensuring extremely low gas fees and high parallel processing capabilities, significantly reducing the cost of on-chain interactions.

After creating an account, users can immediately access all basic crypto tools through the Portal. The wallet in the upper left corner supports real-time trading functions and provides deposit options including cross-chain bridge and fiat deposit services, enabling quick fund inflow. 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 usage threshold, allowing users to enter the on-chain world seamlessly.

Using Pudgy fans as the initial user base

Abstract leverages the vast and active fan community of Pudgy Penguins. Pudgy Penguins have over 3 million followers across Twitter(, Instagram, and TikTok, and boast over 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 tip during live streams using PENGU tokens, which is one of the use cases for PENGU on Abstract.

The synergy between this IP and the platform's functionality greatly facilitated the growth of Portal—1.61 million wallets were activated within two months after the mainnet launch.

More importantly, due to the widespread fan distribution of 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, with the rest primarily distributed across 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 consumer-facing applications, providing a strong foundation for Abstract to build a high-quality consumer ecosystem.

![Abstract Chain Overview Interpretation: How to Build a Consumer-Friendly Public Chain Ecosystem?])https://img-cdn.gateio.im/webp-social/moments-a7a514aaeb776a4f63b0013de6836367.webp(

) B. Portal Platform

The portal platform of Abstract is called "Digital Theme Park of Fun" ### 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 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 users spending an average of over 7 minutes per day. Abstract Global Wallet ) AGW ( users have a 40% retention rate, returning at least once for a transaction within 30 days of creating their wallet, which is much 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 globally each month. For Abstract, live streaming is not only a reason for user return visits but also enhances the platform's stickiness and monetization potential. Live streaming has been proven to promote game and merchandise sales, which aligns closely 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, etc., 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 visits and social sharing.

As of the end of April 2025, Portal has gathered over 1,000 streamers, with a total viewing time exceeding 500,000 hours. Some top streamers have received tips of up to 9 ETH in a single live stream. The top 100 streamers 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.

![Abstract Chain Overview Interpretation: How to Build a Consumer-Friendly Public Chain Ecosystem?])https://img-cdn.gateio.im/webp-social/moments-d1e514208b4c338d2fe26bc2b840fc72.webp(

Reward and Reputation System

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

Abstract uses off-chain XP as the main incentive tool to encourage 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 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, evolving into a comprehensive loyalty and reputation framework that covers both developers and users.

App Discovery

Portal also serves as the "app store" for the Abstract ecosystem. In the "Discover" section, high-quality applications selected by user votes are showcased, 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 immediately without a complicated registration process.

![Abstract Chain Overview Interpretation: How to Build a Consumer-Friendly Public Chain Ecosystem?])https://img-cdn.gateio.im/webp-social/moments-f56512c1a76052d0800ff4825806dbf0.webp(

) C. Application Ecosystem

The ultimate success of any blockchain depends on the ability to cultivate a rich and diverse application ecosystem. For Abstract, its mission is to attract "interesting" consumer-facing applications from Web3 projects and mainstream institutions.

Web3 project

Abstract is fully compatible with the 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 XP rewards based on user participation each month, 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 the applications.

Games are an important entry point for bringing Web2 users into the Web3 world. Among the top 10 most popular applications ranked on Abstract, 8 are gaming products. Popular games include Pudgy World, BigCoin, and Bitcoin mining games.