Abstract Chain: The Consumer L2 Where Culture is the Onramp
Abstract Chain is a “culture-first” Ethereum Layer 2, that’s designed not only to scale transactions but also to act as a gateway that onboards mainstream users through a combination of culture and community
Developed by Igloo Inc (the team behind Pudgy Penguins), Abstract was conceived in response to a need for a chain that focuses on simplifying UX complexities to complement its focus on games, social platforms and more creatively skewed communities, rather than the more common DeFi and infrastructure focus. This was at the time a very different approach when compared to more typical L2s.
Where chains like Arbitrum and Optimism emphasised TVL and speed, Abstract’s goal is very different and aimed at infusing pop culture into blockchains, bringing in millions of new users by making onchain experiences fun, familiar, and engaging. With its goal of becoming the blockchain that leads the next generation of consumer crypto, Abstract’s early strategy has been compared to building a digital entertainment theme park rather than a DeFi-focused network.
By prioritising community, culture and distribution alongside the tech, Abstract has set itself apart.
As Luca mentions:
“Our mission has always been to bring crypto to the masses… to build the biggest onchain community in the world, bringing builders the users they need and users the products they want”.
Abstract's mission is clear, it’s not here to build just another chain but a product ecosystem designed for mainstream appeal without the typical onchain user experience (UX) trade-offs.
ZKsync-Powered with a Web2 Feel
Abstract launched its mainnet in late January 2025 and introduced the chain to its community. Built as a zk-rollup L2 utilising @zksync’s ZK Stack with EigenDA providing offchain data availability for efficiency. This means that Abstract benefits from both EVM compatibility and the security of Ethereum while still being able to deliver the speeds and low costs needed for consumer apps.
The key feature of Abstract is its UX layer, which feels more like a typical app than a crypto platform. By default, every Abstract account is a smart contract wallet, also known as the Abstract Global Wallet (AGW), which comes with account abstraction enabled natively. This means that users can sign up with an email address, Google login, or even a passkey and immediately receive a wallet that doesn’t require them to save private keys or know how to switch networks.
Eliminating these pain points has enabled Abstract to significantly lower the barrier of entry for non-crypto-native users. Their approach has dramatically reduced the common friction points often associated with going onchain.
The experience built is then delivered through Portal, Abstract’s all-in-one user homepage and dashboard. Accessible through abs.xyz, Portal is essentially a hub for the entire UX where you manage your wallet, explore dApps, view livestreams and collect rewards. As a central gateway to Abstract, Portal makes it easy to find the apps you want without searching, providing an experience similar to using an app store.
Built-in bridging, exchange integrations, and direct fiat on-ramps make it easy to fund your account. You don’t need external wallets like Metamask or need to visit any other sites, as Portal ties everything together for you.
Users, Activity and Retention
In the first few months since its launch, Abstract’s ecosystem growth has been robust, providing validation for its consumer-first strategy. The number of wallets registered on the network has currently surpassed 5.9 million and has been growing steadily over time, with a consistent volume of transactions ranging from approximately 500,000 to 700,000 transactions per day.
Daily transaction volume briefly peaked at just under 1.5 million transactions in mid-February 2025, and to date, Abstract has reached a cumulative total of 116.96 million transactions.
This indicates that users on Abstract aren’t just registering wallets, but they’re using and actively participating in the network. One interesting point is that DeFi trades or arbitrage bots are not fueling this growth, but instead, by high-volume consumer app activity (gaming actions, social interactions, etc.), which tends to produce many small onchain transactions.
The result is that while Abstract is one of the most active chains by transactions, its Total Value Locked (TVL) has only reached a modest $50.62 million compared to DeFi-focused chains, and its stablecoin market cap has been relatively flat over time.
Abstract’s built-in livestreaming and social features, accessible through Portal, have proven to be sticky, with users returning to follow livestreams of their favourite creators. No official statistics are available for this, but a recent report by Animoca Research indicates that over 10,000 creators were streaming on the platform, with users spending an average of 7 minutes or more engaging with livestreams and contributing to a 30-day retention rate of 40%.
A 40% retention rate is impressive for a new blockchain, suggesting that those trying the games or attempting to farm airdrop points are returning regularly. The livestreams and Rewards sections provide a competitive advantage by keeping users engaged with fresh content and updates. These metrics may be novel, but when Abstract discusses its retention of user attention and creators, it highlights a metric that, although different when compared to TVL, is no less important.
How Abstract Compares
The rise of Abstract comes at a time when the L2 landscape is already crowded. In many ways, Abstract has chosen to take a very different path from other L2s. Where Arbitrum captured DeFi users early on and Base leveraged on it CeFi user funnel through Coinbase, Abstract, by contrast, began from a cultural IP (Pudgy Penguins) foundation and a promise of better UX for its users.
Abstract’s go-to-market (GTM) strategy focuses on consumer adoption over TVL and a “playground” of engaging apps to keep users retained. The table below displays how Abstract compares against other L2s
Abstract’s strategy seems to be paying off. Their growth in active users and transactions has outpaced ZKsync Era, whose ZK Stack powers the Abstract chain. Of course, mature chains like Arbitrum and Base still have significantly larger overall user bases and liquidity. Optimism’s userbase is the closest to Abstract’s, but its number of transactions on the chain is higher in comparison.
Abstract’s advantage in this case is the recognition of the Pudgy Penguins IP, where physical toys, GIFs on various platforms and games translate to brand familiarity even outside crypto but at the moment it has not translated into onchain usage within the Abstract ecosystem.
Ecosystem Highlights
Abstract’s momentum is maybe best illustrated by the dApps that choose to build or launch on it. In just over seven months, the chain has attracted a diverse range of apps, from games to degenerate DeFi experiments, showcasing the variety within the ecosystem.
Proof of Play Arcade
In July 2025, Proof Of Play launched Infinite Tides based on its Pirate Nation IP on Abstract. This mini-game is a spinoff of Pirate Nation. The significance here is huge, with a well-known gaming studio moving to Abstract. The game showed a strong early reception and continues to attract players.
The game has so far earned over $315,404 in revenue from a total of 9,857 players, or an ARPU of $32 per player, which is impressively high when compared to an ARPU of $0.65 for Stumble Guys.
Spellborne MMORPG Expansion
Another win for Abstract is Spellborne Game, a retro-inspired monster-catching MMORPG that was initially on Avalanche but is now planning integration with Abstract. Since its launch, over 30 million battles have been fought and over 3.5 million monsters have been captured by players.
Beyond the integration of AGW and XP rewards, the scope of Spellborne’s integration remains unclear, but the addition aligns closely with Abstract’s focus on onboarding interactive and user-driven experiences.
Myriad (Prediction Markets + Media)
Myriad Markets was one of Abstract’s main apps during its mainnet launch. It’s a decentralised prediction market which allows users to predict the outcomes on various topics and engage with content from outlets like Decrypt and Rug Radio.
This allows users to consume news or watch videos and place bets on prediction markets related to the outcomes of that content.
In practice, a Decrypt reader with no prior crypto knowledge can log in to Abstract via email and, within minutes, predict the price of Bitcoin or the outcome of an election, using a wallet they didn’t even realise they had created. This seamless blending of media and Web3 is something older L2s haven’t focused on.
Based on Myriad’s bet volumes, it is easy to make an assumption that there is a product-market fit (PMF) in the approach, which is made possible by Abstract’s approach and infrastructure design.
Bigcoin
Bigcoin Mining is a tongue-in-cheek play on Bitcoin mining. It unexpectedly drove a surge in traffic in April when the game launched
The game involves players purchasing virtual mining facilities to mine $BIG tokens under an accelerated halving schedule. On 10 April, Abstract recorded its highest daily DEX volume of over $25 million, with about 50% driven by BIG.
While the burst of interest in Bigcoin was temporary, what it showed was that:
• Abstract could handle sudden loads of transactions without issues
• interest in more degen games shows that Abstract’s user base isn’t limited to casual gamers or NFT collectors
• the chain can generate significant economic throughput when a viral app hits
Bigcoin was a stress test of Abstract’s infrastructure and generated exposure for the chain, further drawing interest.
XP and Tipping
One innovative aspect of Abstract is how it rewards both users and creators. Central to this is the XP system, which is its native loyalty program. Simply put, XP (or experience points) are earned by using Abstract; whether you’re playing a game, trading, streaming content or building a dApp.
When users see their XP increase and the digital badges they’ve earned on their profile, it provides positive reinforcement and is more likely to encourage users to repeat their behaviour. XP is updated weekly and includes quests and campaigns with multipliers to boost engagement. Where other chains have run similar campaigns but tied to trading volume and liquidity provided, Abstract’s XP is used to capture holistic participation within the ecosystem.
Farming XP for bragging rights is not the only reason users are doing so. There is an expected future value of XP points through a possible airdrop or allocation of Abstract’s possible token. While the team has not explicitly confirmed an airdrop or its tokenomics, Luca has hinted at it happening towards the end of the year, and this is likely one of the main drivers of XP farming.
The result is beneficial to Abstracts initial growth as users are incentivised to try new apps and drive Abstract’s mindshare.
For creators, not only do they earn XP based on engagement but there is also a tipping feature within Portal that allows users to send tips to their favourite creators.
Unlike Twitch or Youtube, Abstract’s streaming model allows even small creators to monetize via tips and with AGW integrated into Portal, its easy for users to send tips to creators. And with the XP earned interacting, there is an incentive for users to watch a stream. This creates a loop that goes from creators creating content to users engaging with XP flowing between the two.
$ABS Token (and Airdrop Speculation)
As of August, Abstract has not launched its $ABS token while there are already pre-markets available. There is no official announcement that mentions a token or any hint of one from the team (though Luca had previously hinted at a year end release).
This has led to speculation that an airdrop is on the horizon, especially with the ongoing XP reward program. This has led many users to bank on an airdrop that rewards both Pudgy Penguins NFT holders and active users within the Abstract ecosystem.
The team is walking a fine line from dissuading rumours of an airdrop (if there is none). While they’ve not outright committed to an airdrop, sentiment could change drastically if users en up feeling that they’ve been farmed.
Taking into consideration the ecosystem’s use of ETH as the gas token, there isn’t an immediate need for a native token unless its meant for use within governance. Either way, its all speculative at the moment and should be treated as such.
Food for thought and Conclusion
By prioritising user experience and cultural relevance, Abstract has carved out a growing niche for itself. It is capitalising on users that might have never touched crypto if not for a cute little penguin or a fun mobile game. At the moment, the data hints at strong retention, consistent transaction volume and a diverse menu of apps that cater to the different interests of users.
It’s an interesting narrative change from TVL to retained users. But challenges still lie ahead, and competitors are also making their moves (e.g. Ronin’s planned migration to an Ethereum L2). Abstract will need to continue attracting top-tier apps and keep users engaged even after the airdrop hype fades.
Abstract’s ability to release more features that entrench themselves into the behaviour of its users will be crucial. Beyond that, partnerships leveraging on the Pudgy Penguins’ success with major brands and influencers could also be pivotal.
But what Abstract has proved so far is that by removing friction, users will behave differently. It is possible that the high usage frequency model will be key in its continuous positioning as the hub for onchain culture and community. It’s ambitiou,s but could well position Abstract as the chain for the masses.