Abstract, the Layer-2 Network, Off to a Muted Start

Abstract, the layer-2 network launched by Pudgy Penguins, has gotten off to a slow start despite offering a range of incentives to new users.

User Transactions and TVS

The network recorded 711,000 user transactions on the day of its release, which is a respectable total. However, this number has been overshadowed by a lack of inflows. The total value secured (TVS) on the network stands at just $33 million worth of ether (ETH) and stablecoins, which is a far cry from the tens of billions of dollars distributed across other hyped layer 2 networks.

Native Decentralized Exchange (NOXA)

The platform’s native decentralized exchange, NOXA, has $109K worth of total value locked (TVL), which is down from $515K on launch day, according to DefiLlama.

Launch and Marketing

The launch was marketed as a “new era of consumer crypto” with simplified onboarding that allowed users to create a wallet using an email address. The platform’s native token, Abstract, was designed to be a more accessible alternative to traditional cryptocurrency.

Rewards and Incentives

Users interacting with the Abstract mainnet accrue “xp points” which can be used to “level up” and unlock rewards. However, an Abstract supporter on X noted that “most people don’t care about xp as much as flipping their NFTs,” before lamenting the project’s community.

Abstract’s Vision

Abstract’s CEO Luca Netz wants to steer attention away from stuffy DeFi applications that typically command the most liquidity on other networks. Instead, he wants to focus on products that are “fun.” In an interview, Netz stated that “If it’s not fun and viral, there’s no reason for you to build on Abstract. I’m optimizing for fun, viral, simple, stupid. If you want to build the next DeFi application, I really recommend you use Berachain or Arbitrum. Don’t come to Abstract to build those type of products because we want to be really specialized around fun.”

NFT Sector Performance

The non-fungible token (NFT) sector has struggled to reach the dizzying heights of 2022 during the recent bull market. Trading volume on OpenSea, despite experiencing a major uptick in December amid airdrop rumors, is averaging around $15 million per day in January compared to $160 million per day three years ago.

Pudgy Penguins’ Native Token Performance

The Pudgy Penguins’ native token (PENGU) is down by 7.6% over the past 24 hours and 41% in the past week.

Conclusion

Despite its slow start, Abstract, the layer-2 network, has the potential to carve out a niche for itself in the cryptocurrency market. Its focus on fun and viral products could appeal to a broader audience and help it stand out from more traditional DeFi applications. However, the network will need to demonstrate significant growth and adoption to regain investor confidence and overcome its lackluster performance.

FAQs

Q: What is Abstract, the layer-2 network?
A: Abstract is a layer-2 network launched by Pudgy Penguins that aims to provide a more accessible and user-friendly alternative to traditional cryptocurrency.

Q: What is the current TVS on the Abstract network?
A: The current TVS on the Abstract network stands at just $33 million worth of ether (ETH) and stablecoins.

Q: What is the total value locked (TVL) on the NOXA decentralized exchange?
A: The total value locked (TVL) on the NOXA decentralized exchange is $109K, which is down from $515K on launch day.

Q: What is the current performance of the Pudgy Penguins’ native token (PENGU)?
A: The Pudgy Penguins’ native token (PENGU) is down by 7.6% over the past 24 hours and 41% in the past week.

Q: How does Abstract differentiate itself from other layer 2 networks?
A: Abstract focuses on providing a more fun and viral experience for its users, aiming to appeal to a broader audience and stand out from more traditional DeFi applications.

Q: What is the current state of the NFT sector?
A: The NFT sector has struggled to reach the dizzying heights of 2022 during the recent bull market, with trading volume on OpenSea averaging around $15 million per day in January compared to $160 million per day three years ago.