Backed by the skyrocketing PENGU token, can Abstract Chain stand out among the L2s?

In the past month, Pudgy Penguins’ ecosystem token PENGU has seen a remarkable surge. According to Bitget, from June 23, 2025 to July 23, its price soared over 500% at its peak, with a current trading price of $0.038. Simultaneously, the floor price for Pudgy Penguins NFTs rose more than 50%, now at 15.8 ETH (about $61,000).

On July 31, official announcements stated that the Pudgy Penguins and Abstract teams have formally assumed advisory roles with the U.S. government, contributing to the development of cryptocurrency-related legislation. Both teams visited Washington, D.C. several times for policy consultations. Additionally, PENGU has filed an application with regulators seeking to launch a spot ETF that would include both NFT and token assets.

Taking advantage of a favorable regulatory climate in the U.S., the team is also celebrating the one-year anniversary of Abstract Chain’s mainnet launch. This is another project developed in-house. It remains to be seen whether this Layer 2 network can distinguish itself amid fierce competition.

Abstract Chain, a subsidiary of Pudgy Penguins’ parent company Igloo Inc., is an Ethereum Layer 2 network. Originally created as the on-chain creator economy platform Frame, Abstract Chain’s vision is to build blockchain infrastructure focused on delivering a user-friendly crypto experience.

The platform utilizes zkSync’s zero-knowledge technology and EigenDA’s data availability services, operating as an Ethereum Layer 2 to offer both low-cost and high-speed transactions. According to its website: “We’re not trying to be the ‘fastest’ or ‘most complex’ chain—our focus is on being the ‘most user-friendly,’ allowing beginners to experience blockchain as easily as they use Web2 apps.”

The project secured early backing from investors including Founders Fund, Fenbushi Capital, and 1kx. In July 2025, Pudgy Penguins CEO Luca Netz announced that Abstract was launching a new funding round and exploring ways for the community to participate. At the same time, Abstract continues to enhance the iOS user experience and its flagship app, aiming to make onboarding to Web3 as seamless as possible.

One-Year Progress: From Infrastructure to an Emerging Ecosystem

As of July 2025, Abstract Chain’s total value locked (TVL) stands at $45 million, with cumulative transactions surpassing 100 million.

The Abstract Chain ecosystem focuses on “consumer-grade use cases.” Recently highlighted projects include:

• Onchain Heroes: An idle RPG built on Abstract Chain and powered by Proof of Play. Players dispatch heroes on adventures, earn HERO tokens, craft equipment, and compete for leaderboard rankings. The Genesis Hero NFT currently has a 0.14 ETH floor price, and the HERO token’s market cap is around $10.5 million.
• Moonsheep (SHEEP): Leveraging the innovative DN-404 standard (which merges ERC-721 with ERC-20), this project aims to combine the viral appeal of meme tokens with the depth and staying power of an NFT brand.
• Death.Fun: A high-risk, high-reward on-chain game where players bet, select safe tiles to avoid “death squares,” accumulate multipliers, and can cash out at any time.

In addition to these projects, Abstract Chain recently announced a partnership with Korean K-pop management firm Modhaus, which manages leading girl groups like tripleS and ARTMS.

Memes and Community: PENGU as a “Cultural Symbol”

Currently, the most valuable meme coins on Abstract Chain are key drivers of ecosystem activity. PENGU leads with a $2.3 billion market cap. ABSTER ($32 million) and NOOT ($14 million), both derived from the “penguin” IP, have built strong brands using storytelling and community engagement.

For instance, ABSTER brands itself as the “legendary penguin coded into Abstract Chain,” and its “inescapable” narrative has reinforced its status as an on-chain cultural icon. NOOT leverages “penguin nostalgia” to attract users, evoking memories from the early Pudgy Penguins community.

After one year, Abstract Chain has made solid initial progress in transaction volume, TVL, and ecosystem project incubation. The platform has particularly leveraged the Pudgy Penguins community to attract users and developers. Its clear focus on consumer-grade user experience and seamless onboarding, as well as its partnership with K-pop, demonstrate the team’s commitment to bridging blockchain and mainstream culture.

However, Abstract Chain and its ecosystem partners face the challenge of moving beyond meme coin hype to develop sustainable consumer applications with strong user retention and broad appeal.

Disclaimer:

1. This article is republished from [Foresight News]. Copyright belongs to the original author [Nicky, Foresight News]. If you have any concerns about this republication, please contact the Gate Learn team. The team will address your request promptly in accordance with our procedures.
2. Disclaimer: The views and opinions expressed in this article are solely those of the author and do not constitute investment advice of any kind.
3. The Gate Learn team translates other language versions of this article. You may not copy, distribute, or plagiarize the translated work without citing Gate.