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

Summary

• Abstract Chain is a consumer-oriented blockchain that will be launched in January 2025, aimed at promoting the popularization of cryptographic technology and creating a platform with low barriers to entry and high participation.
• Abstract Chain provides a smooth user experience through native account abstraction and leverages the established Pudgy Penguins and PENGU fan communities to offer differentiated value with a unique user structure.
• 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.
• The 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 the main competitive advantages.
• Abstract Chain has currently achieved large-scale applications: the number of registered wallet users is about 2 million, with approximately 100,000 daily active wallets and an average of 700,000 on-chain transactions per day, reflecting the high activity of the platform.

Introduction

Abstract Chain is an Ethereum Layer 2 blockchain established in March 2024, utilizing zero-knowledge encryption (zk) technology, dedicated to providing mainstream consumers with a seamless and differentiated Web3 experience. This chain employs an account abstraction mechanism, simplifying wallet setup and on-chain signature processes, thereby lowering the access threshold. Through zk-rollup technology, Abstract is capable of providing 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 large-scale mainstream user adoption. Early projects like Arbitrum and Optimism successfully addressed performance bottlenecks and attracted crypto-native users. However, to achieve what is known as "consumer-grade cryptocurrency," it is necessary to build a low-barrier, highly engaging Web3 platform.

Early explorations like TON and Kaia attempted to reduce user acquisition costs by integrating Web3 into mainstream social platforms such as Telegram and LINE. This has been somewhat successful, but relying on the openness of these Web2 platform ecosystems remains difficult to achieve in mature markets like Europe and the USA.

Abstract Chain has chosen another path: to directly embed cryptocurrency technology into consumer applications, encouraging users to use it unconsciously.

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

The Business Flywheel of Abstract

The development of a new blockchain typically begins with building a developer ecosystem, gradually increasing the on-chain locked value ( TVL ) through the development of on-chain applications and the introduction 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 driven by the NFT boom, while Solana has recently gained popularity due to meme coins. These native assets lock users onto the chain while also attracting developers to build applications around trends. From a business perspective, this approach is similar 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 gateway platform (Portal) as a vibrant online hub, designed around three main features:

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

Metaphorically speaking, Abstract is similar to running a thriving large shopping center: integrating multiple stores in one place, continuously hosting performance events on a central stage, maintaining high foot traffic and activity, and ensuring customers keep coming back to enjoy.

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

A. User Guide

The early user base of Abstract heavily relied on its association with 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 distinct advantage in converting interest into actual users.

Easy onboarding experience

Abstract Chain is committed to simplifying the user onboarding process and 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, greatly reducing the cost of on-chain interactions.

After creating an account, users can immediately use all basic crypto tools through the Portal. The wallet in the upper left corner supports real-time trading features and offers recharge options including cross-chain bridges 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 barriers to entry, allowing users to access the on-chain world without hindrance.

Use Pudgy fans as the initial user base

Abstract leverages the large and active fan community owned by Pudgy Penguins. Pudgy Penguins has over 3 million followers on Twitter(, Instagram, and TikTok before X), and has over 500,000 PENGU token holders, providing a ready user pool for the Abstract chain.

In Abstract's Portal, the image of Pudgy Penguins is everywhere, just like Mickey Mouse in Disneyland: appearing in marketing banners, user avatars, live streaming stickers, and more. For PENGU holders, the Portal also has practical uses— they can use PENGU tokens to give tips during live broadcasts, which is one of the use cases for PENGU on Abstract.

The synergy between this IP and platform functions greatly promoted the growth of Portal - 1.61 million wallets were activated within two months after the mainnet launch.

Moreover, due to the wide distribution of Pudgy and PENGU fans, Abstract's user profile differs 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 UK, France, Japan, South Korea, Singapore, and Hong Kong ). This user group 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 "数字主题乐园(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 is performing exceptionally well. 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 users of the Abstract Global Wallet ( AGW ), 40% return to make at least one transaction within 30 days of creating their wallet, a retention rate that is significantly higher than the industry average.

Live Streaming Feature

Live streaming is a media format favored by young people worldwide. Web2 platforms like Twitch attract 240 million unique users every month. For Abstract, live streaming is not only a reason for user return, but also enhances platform stickiness and monetization capabilities. Live streaming has proven to boost game and merchandise sales, which aligns closely with Abstract's goal of building an entertainment ecosystem.

The "Watch and Earn ( Stream-to-Earn )" model introduced in the abstract encourages user participation through rewards, comments, gifts, etc., 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 continuous user engagement 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 even received tips of up to 9 ETH in a single live broadcast. The top 100 streamers account for a significant share of the platform's tip revenue, with individual monthly incomes ranging from $4,000 to $5,000, and they have over 4,000 interactive users.

Reward and Reputation System

Many crypto projects encourage early user participation through point mechanisms, 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 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 or using recommended applications.

At the same time, the badge feature allows users to showcase their achievements. Different types of badges will be issued as on-chain NFTs or displayed within the application 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 the 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 encompasses both developers and users.

Application Discovery

Portal also serves as the "app store" for the Abstract ecosystem. In the "Discover" section, it showcases high-quality applications selected by user votes, categorized into: digital collectibles, games, NFTs, social, AI, trading, prediction markets, etc. Users can log into these applications directly using their Abstract ID, allowing them to start experiencing immediately without a complicated registration process.

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 "interesting" consumer-facing applications from Web3 projects and mainstream institutions.

Web3 project

Abstract is fully compatible with EVM( Ethereum Virtual Machine), supporting existing