Backed by the skyrocketing PENGU token, can Abstract Chain break through among the L2s?

Written by Nicky, Foresight News

In the past month, the price of PENGU, the Pudgy Penguins ecosystem token, has risen significantly, with its maximum increase exceeding 500% from June 23 to July 23, 2025, and is now trading at $0.038. At the same time, the floor price of the Pudgy Penguins NFT collection has risen by more than 50% at the same time, and is now trading at 15.8 ETH (approximately $61,000).

On July 31, according to official reports, Pudgy Penguins and the Abstract team have officially assumed the role of advisors to the U.S. government and participated in the design of cryptocurrency-related legislation. The team traveled to Washington, D.C. for policy consultations on several occasions. In addition, PENGU has submitted an application to regulators to launch a spot ETF product covering NFT and token assets.

Catching up with the crypto spring breeze in the US political arena, it coincides with the first anniversary of the launch of the Abstract Chain mainnet, another project designed by his team. Can this L2 break out of the crowd?

As an Ethereum Layer 2 network owned by Igloo Inc., the parent company of Pudgy Penguins, Abstract Chain was formerly known as Frame, an on-chain creator economy platform, with a vision to build a blockchain infrastructure focused on "consumer-grade crypto experiences."

Its technical foundation uses zkSync's ZK technology and EigenDA's data availability scheme to operate as an Ethereum Layer 2 while providing a low-cost and high-speed transaction experience. Its official website makes it clear: "We don't aim to be the 'fastest' or 'most complex' chain, but focus on 'the easiest to use' – allowing novice users to engage with blockchain as seamlessly as using Web2 applications."

The project received institutional investment from Founders Fund, Fenbushi Capital, 1kx, and other institutions in the early stages. In July 2025, Pudgy Penguins CEO Luca Netz revealed that he was seeking a new round of funding for Abstract and exploring avenues for community participation in funding. At the same time, Abstract will continue to optimize the iOS experience and its portal app, Portal, with the goal of minimizing the barrier to entry for Web3.

One year's progress: from infrastructure to ecology

As of July 2025, the total value locked (TVL) of the Abstract Chain network has reached $45 million, with a cumulative transaction processing volume of over 100 million.

Abstract Chain's ecosystem revolves around "consumer-grade scenarios". Cooperation projects frequently forwarded by its official account recently:

Onchain Heroes: An idle role-playing game (idle RPG) running on Abstract Chain, powered by Proof of Play. Players send heroes on adventures, earn tokens HERO, craft gear, and compete on leaderboards. Its Genesis Hero NFT floor price is now quoted at 0.14 ETH, and the market capitalization of the token HERO is approximately $10.5 million.
Moonsheep (SHEEP): Adopting the innovative DN-404 standard (blending ERC-721 and ERC-20), it is positioned as a hybrid project that combines the communication power of meme coins with the depth of NFT branding.
Death.Fun: A high-risk, high-reward on-chain game. Players can choose to settle their profits at any time by placing bets, selecting safe blocks to avoid the "death square" and accumulating multipliers.

In addition, Abstract Chain recently announced a partnership with South Korean K-pop agency Modhaus, which owns top girl groups such as tripleS and ARTMS.

Meme and Community: PENGU Leads the "Cultural Symbol"

Currently, the meme coins with the highest market capitalization on Abstract Chain have also become the protagonists of its ecological vitality. Among them, PENGU's market capitalization has reached $2.3 billion, ranking first; Memes derived from the "Penguin" IP, such as ABSTER ($32 million market capitalization) and NOOT ($14 million), form unique labels through storytelling and community consensus.

For example, ABSTER claims to be a "legendary penguin deeply rooted in the Abstract Chain code", and its "inescapable" setting reinforces users' perception of its "on-chain cultural symbols"; NOOT attracts users with "Penguin Retro Feelings", echoing the early community memories of Pudgy Penguins.

In the first year of its establishment, Abstract Chain has made initial progress in transaction scale, TVL, and ecological project incubation, especially relying on Pudgy Penguins' community influence to attract users and developers. Its positioning of focusing on consumer-grade experience and lowering the threshold for use is clear, and its cooperation with K-Pop also shows an attempt to break the circle of off-chain culture.

However, how to surpass the popularity of meme coins and cultivate consumer-grade applications with true longevity and widespread user stickiness remains a core challenge for Abstract Chain and its ecosystem builders.

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