The number of users exceeded 1.3 million, and the volume exceeded 50 million. How did "Penguin Chain" Abstract achieve this in just 3 months?

Compiled by: Tim,

In the blockchain field dominated by infrastructure, Abstract will make a strong debut on January 27, 2025, with a bold adjustment to its core strategy: it will focus first on end users rather than developer testnets, aiming to promote the real large-scale implementation of applications.

Overview

• Launch time: January 27, 2025
• Development History: Abstract is the first consumer-oriented Layer 2 scaling solution in the Ethereum ecosystem, developed by the Igloo team, which created the well-known NFT series "Pudgy Penguins."
• Core Value Proposition: Designed for mass adoption, Abstract eliminates key barriers such as wallets, mnemonic phrases, and gas fees.
• Application areas: gaming, social, NFT, and prediction markets
• Technical Architecture: Built on zkSync ZK Stack

As of April 22, 2025 data:

• 1.31 million+ independent wallets
• Total trading volume exceeds 51.3 million transactions
• The contract creation volume reached 2.26 million.
• Total guaranteed value ( TVS ): 46.66 million USD
• DeFi TVL: 16.86 million USD
• Daily average transaction volume: 500,000 to 700,000 transactions
• Daily Active Wallets: 50,000 to 100,000

User Experience Revolution: Real Consumer Chain Practice

Unlike the model of most L2s that launch development tools first and wait for ecosystem development, Abstract has restructured the user lifecycle experience:

1. Registration process: Built-in smart contract wallet (AGW), no need to rely on external tools like MetaMask.
2. Discovery Mechanism: By embedding a consumption portal that aggregates applications, integrating live viewing and XP task system, achieving closed-loop interaction within the platform.
3. Retention System: A combination of streaming media content + dynamic tasks + incentive mechanisms.

"Pudgy Effect": Large-scale issuance driven by IP

The onboarding process of Abstract is not designed around incentive measures or airdrops, but rather built around native IP distribution and real-world consumer traffic channels.

Pudgy's consumer IP and product distribution system is Abstract's core strategy for achieving user-driven growth even before launching any tokens.

• Sorter Release: The first node precisely aligns with the Pudgy Penguins marketing cycle, achieving over 700,000 transactions on the first day.
• On-chain reward system: Binding Pudgy offline experience rights, NFT holders can enjoy bonus rewards
• Native Application Matrix: Core DApps such as Pudgy World, Pudgy Party, etc. will be launched simultaneously.
• Virtual-Real Interaction Innovation: Physical toys come with QR codes that lead directly to the on-chain world, realizing the conversion from consumer goods to on-chain users.
• Channel leverage effect: Derivative Pudgy IP has over 1 million toy sales, 10 million USD in revenue, and a pool of 1.7 million Instagram followers.
• Customer acquisition cost optimization: Leverage IP assets to achieve low-cost cold starts and quickly generate network effects.

Application Usage: Where is the user's time spent?

Unlike most emerging blockchains—where usage behaviors on the chain are often concentrated in a single area such as cross-chain bridging, token swapping, or experimental decentralized applications—Abstract Blockchain demonstrates a vibrant and multi-layered application ecosystem, with application scenarios covering various dimensions including digital wallets, application frameworks, gaming and entertainment, trading services, and social networks.

Top 7 Applications

The wallet and core interface have driven over 27 million transactions and 700,000 users solely based on the infrastructure. Beyond the infrastructure, applications such as gacha games, Myriad, and Reservoir continue to demonstrate user revisit behaviors.

On-chain activities: Insights behind the data

• Active wallets: Reached a peak of over 150,000 daily in February, then gradually stabilized, maintaining between 50,000 and 100,000.
• Participation driving factors: The surge in activity is closely related to the release of applications, community events, and on-chain incentive measures.
• Retention signals: a brief decline in March, followed by a rebound – this indicates that users have genuine stickiness rather than utilitarian behavior.

Total Value Locked (TVL) Trend Analysis

Currently, the Abstract protocol's locked amount has reached 46.66 million USD. After a rapid growth since its initial launch, the TVS has consistently stayed above 45 million USD, with a significant peak in early February. Although there was a slight decline in early April (about 3%), the fund size quickly rebounded, indicating that the protocol has a stable fund retention capability and a low short-term volatility risk.

Transaction Trend Analysis

• Initial growth phase: trading volume gradually increases after launch → peaks in February with an average daily trading volume exceeding one million
• Stable operation period: From March to April, the average daily trading volume remains between 500,000 and 700,000.
• Cumulative transaction volume: The total trading volume on the platform has exceeded 40 million and is showing a continuous growth trend.

Infrastructure Technology Stack

Abstract is a vertically integrated blockchain designed for consumer-level user experience. Its infrastructure architecture combines zero-knowledge proof (ZK) scalability technology with embedded end-user tools.

Product Stack Overview:

Four-layer architecture:

1.Abstract ZK-rollup

2.Abstract Global Wallet

3. Panoramic Governance (PG)

4. Consumer Portal

Deconstruct and analyze each level based on architectural design and performance.

AGW: No MetaMask required, no mnemonic phrases, no pop-ups

AGW will be issued as a default foundational feature to all Abstract platform users. This product replaces traditional browser plugins, external accounts (EOAs), and complex login interaction processes through a blockchain-native smart contract wallet layer.

Application Scale:

A total of over 15.6 million transactions processed

The total number of registered users has reached 315,000, of which 254,000 are active users in the last 30 days.

Core Features:

• Email/Social Account/Access Key (using Privy) for quick registration
• Gas-free transactions (via paymasters)
• Session key authorization allows for silent background operations.
• Supports batch transaction packaging submission, eliminating multi-step interaction processes.
• The social account recovery mechanism based on the Guardian module completely avoids the risk of losing traditional mnemonic phrases.

Consumer Portal

The consumer portal is the default user interface for all Abstract wallets. It integrates application discovery, asset exchange, streaming services, XP task system, and wallet management functions. It is the main entry point for users to use and retain applications.

The Abstract App alone has processed over 11.7 million transactions from 588,000 users, with a transaction volume of 6.4 million in the last 30 days and an active user count of 447,000.

Portal Function:

• Discover applications through a curated app market
• Live center directly embedded in the application
• Experience points and task system enhance application activity
• Native support for token swaps and NFT minting
• One-stop integration of AGW wallet management, identity authentication, and activity records

Panoramic Governance (PG)

PG is a value redistribution mechanism based on actual usage, where the sorter fee + token release amount flows to:

• Active Users
• High Traffic Applications
• Voters participating in governance through staking and usage

Unlike most chains that adopt "passive governance" (where weight is determined solely by the amount of tokens held), PG requires participants to actively contribute to network activities in order to unlock rewards.

Developers can offer "vote bribery" to compete for the release of tokens based on voting weight (similar to the Aerodrome model), but the system's scale is driven by activity rather than solely relying on the amount of tokens held.

Incentive Positive Cycle:

• Users benefit from usage
• Application: Benefit from increased participation
• Governance: Benefiting from promoting ecosystem activity

This is a complete revolution of the traditional "locking + idle" token model.

uses live streaming as a growth engine

Most blockchain projects view live streaming and creator content as an off-protocol marketing layer. Abstract, however, directly embeds it into the on-chain protocol through consumer entry points, making the live streaming function a native component of user registration, ecosystem discovery, and user growth.

The uniqueness of the Abstract platform:

• The platform natively integrates live streaming features similar to Twitch, rather than through external access.
• The anchor's earnings are based on an on-chain payment mechanism, and their revenue share is primarily based on the following metrics:
• Number of viewers
• The promotional effect of applications within the Abstract ecosystem
• User subsequent behavior (recorded through AGW tracking system)

The platform will proactively recommend popular video clips and live content, thereby building a complete traffic loop among creators, application developers, and users.

Flywheel effect in operation

Hosts showcase new applications on the Abstract platform;

Users log in through AGW (Abstract Gateway) to immediately experience these applications.

The increase in application usage attracts more creators to join and drives investment in collaborative projects between developers and streamers.

Promote high-quality content segments to inject more potential user attention traffic into the platform.

This closed loop internalizes the entire content → usage → growth link within the platform, rather than dispersing it across multiple platforms.

Conclusion: The current positioning of Abstract

Abstract has demonstrated what user-centered blockchain infrastructure looks like in practical applications:

• Wallet functionality is built-in: not an external plugin, but deeply integrated.
• Discover and interact natively: functionality is native to the platform rather than existing in a fragmented manner.
• Content Embedded Ecosystem: Content grows autonomously on the platform without relying on external channels like Twitter.
• Behavior Incentive-Oriented: Reward users for their behavioral contributions rather than just being token holders.