Abstract Chain: A Comprehensive Analysis – How to Bring Public Blockchain Ecosystems to the Mainstream User?
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Abstract Chain: A Comprehensive Analysis – How to Bring Public Blockchain Ecosystems to the Mainstream User?
Through zk-rollup technology, Abstract delivers low-cost, high-throughput on-chain transactions, providing scalability and security for consumer-facing applications.
Navigating Web3 tides with focused insightsAuthor: Animoca Research
TL;DR
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Launched in January 2025, Abstract Chain is a consumer-centric blockchain focused on mainstream adoption of crypto through an accessible and engaging platform.
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Leveraging native account abstraction for seamless user experience and the established Pudgy Penguins and PENGU fanbase, Abstract offers differentiated value through its unique user composition.
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Abstract’s growth strategy centers on building a digital entertainment theme park with its own portal integrating live streaming and rewards, attracting application developers into its ecosystem.
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By the end of May this year, the live streaming platform had attracted over 10,000 streamers, averaging more than 7 minutes of daily user engagement time and achieving a 40% 30-day retention rate—making live streaming one of its key competitive advantages.
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Abstract Chain has already achieved large-scale adoption: nearly 2 million wallet sign-ups, around 100,000 daily active wallets, and approximately 700,000 on-chain transactions per day—indicating high platform activity.
Introduction
Founded in March 2024, Abstract Chain is an Ethereum Layer 2 blockchain utilizing zero-knowledge (zk) cryptography, aiming to deliver seamless and differentiated Web3 experiences to mainstream consumers. The chain implements account abstraction to simplify wallet setup and transaction signing, lowering entry barriers. Through zk-rollup technology, Abstract enables low-cost, high-throughput on-chain transactions, providing scalability and security for consumer-facing applications.
Despite intense competition within the blockchain ecosystem, true mass mainstream adoption remains elusive. Early leaders like Arbitrum and Optimism solved performance bottlenecks and attracted crypto-native users. However, achieving so-called "consumer-grade crypto" requires creating Web3 platforms that are both easy to use and highly engaging.
Early attempts by TON and Kaia sought to integrate Web3 into mainstream social platforms such as Telegram and LINE to reduce user acquisition costs. While these efforts saw some success, their reliance on open ecosystems from Web2 platforms makes them difficult to replicate in mature markets like Europe and North America.
Abstract Chain has chosen a different path: embedding crypto directly into consumer applications to enable frictionless, invisible usage at the user end. Abstract launched its mainnet in January 2025 alongside Portal—the gateway to its gaming and application ecosystem. More than just a content showcase, Portal serves as a highly interactive online destination featuring live streaming, rewards, collectibles, and Spotlight (app recommendations), creating sticky user experiences. This strategy sets Abstract apart from other chains and forms the core engine behind its growth.
Abstract's Business Flywheel
New blockchains typically begin by building developer ecosystems—launching dApps and introducing DeFi protocols to gradually increase total value locked (TVL). To attract users, projects often rely on incentives such as airdrops.
These models derive network effects primarily from users’ holdings of on-chain assets. For example, Ethereum was initially driven by the NFT boom, while Solana recently gained traction due to meme coins. These native assets anchor users to the chain and drive developers to build trend-based applications. By analogy, this approach resembles promoting a specific payment card usable only at select stores.
Abstract Chain takes a different route. Instead of focusing on asset accumulation, it positions Portal as a dynamic central hub built around three core functions:
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Core services: tools such as wallets, fiat on-ramps, and token swaps that enable access to the ecosystem;
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User engagement: live streaming and reward centers that enhance stickiness;
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Discovery: the Spotlight section guides users to explore new content.
This system ensures new users can quickly enter Web3, while existing users are continuously drawn back by fresh content.
Using another analogy, Abstract operates more like a thriving shopping mall: consolidating multiple vendors under one roof while hosting regular performances on a central stage to maintain foot traffic and engagement, encouraging repeat visits and immersive experiences.
The following analysis will focus on three key growth drivers: user acquisition → portal engagement → app ecosystem momentum. Together, they form the core components of Abstract’s business flywheel.
A. User Onboarding
Abstract’s initial user base benefited significantly from its association with the Pudgy Penguins IP and its emphasis on extreme ease of use. While fans of Pudgy and PENGU continue to flow into Abstract, its smooth onboarding experience gives the chain a distinct advantage in converting interest into real users.
Frictionless Onboarding Experience
Abstract Chain simplifies user onboarding by removing traditional obstacles. Its native account abstraction allows users to create an Abstract account and activate a wallet as easily as registering for any standard website. There’s no need to manage private keys or manually sign every transaction. Account recovery and fund transfers feel as intuitive as browsing the web or playing games. Additionally, powered by zero-knowledge rollups, the chain ensures extremely low gas fees and high concurrency, drastically reducing the cost of on-chain interactions.
Once users create an account, they can immediately use all core crypto tools via Portal. The wallet located in the top-left corner supports real-time transactions and offers deposit options including bridging and fiat on-ramps for quick funding. The exchange section enables native token swaps without requiring third-party services. These integrated features collectively lower the barrier to entry, enabling seamless access to the on-chain world.
Pudgy Fans as Early Adopters
Abstract leverages the massive and active community surrounding Pudgy Penguins. With over 3 million combined followers across X (formerly Twitter), Instagram, and TikTok, and more than 500,000 PENGU holders, Pudgy provides Abstract with a ready-made user pool. Within Abstract’s Portal, Pudgy Penguins imagery is omnipresent—like Mickey Mouse in Disneyland—appearing in banners, avatars, and livestream stickers. For PENGU holders, Portal also offers practical utility: they can tip streamers using PENGU tokens, one of several use cases for PENGU on Abstract.
This synergy between IP and platform functionality has greatly accelerated Portal’s growth—1.61 million wallets were activated within two months of mainnet launch. More importantly, because Pudgy and PENGU fans are globally distributed, Abstract’s user demographics differ from those of other consumer-focused crypto ecosystems like TON and Kaia. Abstract attracts a significant number of users from developed markets—17.4% from the U.S., with others mainly from Europe and East Asia, including Germany, the UK, France, Japan, South Korea, Singapore, and Hong Kong. This user base is highly valuable for consumer applications, laying a strong foundation for building a high-quality consumer ecosystem.
Source: Abstract Official
B. The Portal Platform
Abstract’s portal is described as a “Digital Theme Park of Fun”—not only a place for discovering trending apps and creators but also the central interface for managing assets and rewards.
Early data shows strong performance. As of March 2025, Portal had over 600,000 monthly active users (MAU) and 100,000 daily active users (DAU), with average daily session duration exceeding seven minutes. Among Abstract Global Wallet (AGW) users, 40% return to conduct at least one transaction within 30 days of creation—a retention rate far above industry averages.
Live Streaming Functionality
Live streaming is a beloved medium among young people worldwide. Web2 platforms like Twitch attract 240 million unique monthly visitors globally. For Abstract, live streaming isn’t just a reason for users to return—it enhances platform stickiness and monetization potential. Proven to boost game and merchandise sales, live streaming aligns perfectly with Abstract’s goal of building an entertainment ecosystem.
Abstract’s “Stream-to-Earn” model encourages user participation through tipping, commenting, and gifting, allowing both streamers and viewers to earn tokens, rewards, or experience points (XP). In addition, “follow” and “recommend” features help foster community and encourage repeated visits and social sharing.
As of April 2025, Portal hosted over 1,000 streamers, accumulating more than 500,000 hours of total viewing time. Top streamers have received single tips as high as 9 ETH. The top 100 streamers capture a significant share of tipping revenue, earning between $4,000 and $5,000 per month, each engaging over 4,000 interactive users.
Rewards and Reputation System
Many crypto projects use point systems to incentivize early participation, but comprehensive loyalty and reputation systems remain rare in on-chain ecosystems. Abstract builds this infrastructure using XP and badge systems.
Abstract uses off-chain XP as the primary incentive tool to encourage desired behaviors. Content creators earn XP through live stream engagement, developers gain XP by completing user activation tasks, and regular users accumulate XP by linking social accounts or trying recommended apps.
Badge functionality allows users to display achievements. Based on behavior and task completion levels, different badges are minted as on-chain NFTs or displayed within the app, becoming part of users’ digital identities and gradually forming a complete reputation system.
The system is still in early stages, currently limited to Portal. But in the future, the XP and badge system could expand across the entire Abstract ecosystem, evolving into a full-fledged loyalty and reputation framework serving both developers and users.
App Discovery
Portal also acts as the “app store” for the Abstract ecosystem. The “Discover” section showcases high-quality apps selected by user votes, categorized into digital collectibles, gaming, NFTs, social, AI, trading, and prediction markets. Users can log in directly to these apps using their Abstract ID and start experiencing them instantly—no cumbersome registration required.
C. Application Ecosystem
For any blockchain, long-term success ultimately depends on cultivating a rich and diverse application ecosystem. For Abstract, the mission is to attract fun, consumer-oriented applications from both Web3 projects and mainstream institutions.
Web3 Projects
Abstract is fully EVM-compatible (Ethereum Virtual Machine), supporting migration of existing Ethereum smart contracts and cross-chain deployment. The platform launched a Builder-in-Residence Program, offering market support, technical mentorship, and monthly stipends to developers. Builders earn monthly XP rewards based on user engagement, and top-performing projects may receive additional incentives. The live streaming platform also promotes featured games via embedded links, driving traffic to apps.
Gaming is a crucial entry point for bringing Web2 users into Web3. Eight out of Abstract’s top ten most popular apps are games. Notable titles include *Pudgy World*, *Bigcoin*, and *BTC Mining Game*, adventure games like *Onchain Heroes* and *LOL Land*, Pudgy IP games launched by YGG, and community-driven projects like *Gigaverse*.
Through partnerships with NFT platforms such as Magic Eden and OpenSea, Abstract enables buying, selling, and trading of in-game assets, further enriching the gaming ecosystem. Over 120 projects have now been deployed on Abstract, spanning social apps like *Gacha*, trading platforms like *BuzzFun* and *Myriad*, and games including *Gigaverse*, *Onchain Heroes*, and *Multiplier*
Abstract’s strong user base enables rapid visibility for new projects. For instance, *Duper* and *Witty* attracted 50,000 users within days of launch; the prediction market *Myriad* drew nearly 500,000 users in two months. These successes significantly boost developer confidence and encourage more teams to build on the platform.
Mainstream Institutions
Abstract is actively collaborating with consumer-facing institutions—such as music and sports brands—to bring their Web3 products on-chain. For example, digital collectibles similar to NBA Top Shots are issued as NFTs, allowing fans to buy, hold, and trade them. These sports and music enthusiasts align closely with Abstract’s consumer positioning.
For institutions seeking on-chain partners, Abstract offers compelling advantages: Ethereum-level security, user-friendly interfaces, and low-barrier access are key selling points. While specific collaborations haven't all been announced yet, once launched, they are expected to bring large numbers of mainstream Web3 users who can truly immerse themselves in on-chain experiences.
Recently, Oracle Red Bull Racing launched an on-chain fan engagement project called *In the Moment* on Abstract, targeting Gen Z and Gen Alpha youth. Combining iconic F1 moments with digital ownership and interactive experiences, the initiative transforms passive viewers into active participants. This multi-year strategic move aims to use on-chain collectibles and interactivity to turn young fans' interests into a sense of belonging—and even shareholder mentality.
Core Philosophy: Consumer-Grade Crypto
Luca Netz, co-founder of Abstract, clearly states the mission: Abstract aims to build “consumer-grade crypto”—creating a scalable path for blockchain applications that serve billions in their everyday lives and meet personal needs.
The team believes the best way to onboard the first 50 million users into crypto is by focusing on “non-essential consumption”—activities centered on fun, emotional resonance, and enhanced experiences made possible through crypto.
Abstract Chain is the primary platform realizing this vision of consumer crypto. Unique properties of blockchain—digital ownership, censorship resistance, and borderless payments—enable unprecedented user experiences in gaming, socializing, meme culture, and collecting. Through user-centric product design, Abstract aims to unlock this potential fully, making everyday life more enjoyable for millions.
As Michael Lee, co-founder and CEO of Abstract, puts it, this generation has already transformed entertainment, music, and luxury industries: turning publishers into streamers, audiences into athletes, corporations into creators, and shifting focus from price tags to cultural value. Abstract’s mission is to return “joy, ownership, and creativity” to everyone’s hands—and make it effortlessly accessible.
At the same time, this “growth driven by non-essential consumption” strategy means Abstract may intentionally overlook certain tech stacks valued by other major blockchains—such as advanced DeFi modules, DePin (decentralized physical networks), or RWA (real-world assets). Therefore, users should not expect Abstract to rapidly grow TVL like DeFi-centered chains.
Initial Chain Performance
In July 2024, Abstract stepped into the spotlight, announcing an $11 million funding round led by Founders Fund and launching its testnet. The mainnet officially went live on January 27, 2025, with over 120 applications deployed at launch.
By the end of May 2025, Abstract had created nearly 2 million wallets, deployed 1.4 million contracts, and secured a Total Value Secured (TVS) of $53.4 million. Daily transaction volume peaked at 1.5 million in early March before stabilizing around 500,000; cumulative on-chain transactions reached 60 million by May.
Platform activity over the past 30 days also showed strong momentum: the top five apps generated $1.85 million in total revenue, while NFT trading volume surpassed $10.4 million. Abstract Chain has not yet launched a native token. Since zk-rollups do not require an on-chain token to pay gas fees, any future Abstract token will need to break from tradition and offer novel utility.
On-Chain Metrics Comparison
Abstract’s go-to-market (GTM) strategy focuses on consumer adoption rather than traditional metrics like DeFi TVL or developer ecosystem share. Its target users include NFT collectors, gamers, streamers, and casual social media users.
From February to May 2025, Abstract’s TVS (Total Value Secured) grew 150%, rising from $20 million to $50 million. Active addresses peaked at 2 million and later stabilized around 500,000. Cumulative transaction volume reached 60 million during this period. Initial projects concentrated in NFTs and gaming, precisely reflecting its “consumer-first” positioning and aiming to capture the on-chain consumer market.
In comparison with other chains, Abstract’s growth in the first three months post-mainnet launch has surpassed ZKsync Era—an industry-leading zk Ethereum scaling solution—while its active address count and transaction volume are approaching those of TON. Meanwhile, mature rollups like Base and Arbitrum serve as benchmark EVM success stories, representing targets for Abstract to catch up with.
Conclusion
The Abstract team pioneered a “consumer-first” model for building crypto ecosystems, aiming to push Web3 toward mass adoption. Their vision of “consumer-grade crypto” has already been validated through the successful expansion of the Pudgy Penguins IP, and is now being amplified through Abstract Chain into a vibrant, continuously operating online destination.
For an online destination to succeed, it must harness network effects—requiring constant influx of new users, creator participation, and developer support. In its early stages, Abstract leveraged the Pudgy fanbase and its native live streaming platform to establish a solid foundation for user growth and retention.
To achieve exponential scale, Abstract will need to identify true “killer apps,” likely emerging first from gaming and pop culture, while attracting influential creators and global brands to join its platform.
Meanwhile, the consumer crypto space is heating up rapidly. TON and Kaia are backed by social platforms, Base and BNB by exchanges, and Sonenium by institutional forces. These competitors are all entering the race for mainstream adoption. Although “mainstream crypto applications” remain a blue ocean, these diverse approaches are inspiring each other, driving innovation, and accelerating the entire industry’s journey toward the mainstream.
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