Key Points:
- Abstract has only $33 million in total value secured (TVS) shortly after launch.
- The company’s CEO indicated they are not focusing on attracting builders for new DeFi applications.
- The PENGU token has seen a 7.6% decline in the past 24 hours and 41% over the past week.
Abstract, a new layer-2 network launched by Pudgy Penguins, is experiencing a slow start despite offering various incentives to new users. On its launch day, the network logged 711,000 user transactions, but the overall inflow has been disappointing. The total value secured (TVS) has reached only $33 million in ether (ETH) and stablecoins, in stark contrast to the billions secured by other prominent layer 2 networks.
The platform’s decentralized exchange, NOXA, had a total value locked (TVL) of $109K, decreasing from $515K on launch. The launch was presented as ushering in a “new era of consumer crypto,” with simplified onboarding allowing users to set up a wallet via email.
Users earn xp points by interacting with the Abstract mainnet, allowing them to “level up” and earn rewards. However, community feedback indicates that interest in xp points is less significant compared to the NFT trading activities.
Abstract operates like many Ethereum-based layer 2 networks, allowing users to bridge funds, swap tokens, and launch new tokens. Luca Netz, the CEO, is keen to move away from traditional DeFi applications in favor of products that promote fun and engagement, stating: “If it’s not fun and viral, there’s no reason for you to build on Abstract. I want to focus on fun, viral, simple, and straightforward.”
The launch of Abstract coincides with a downturn in Pudgy Penguins’ PENGU token value, reflecting a broader decline in the NFT sector that fails to reach the highs experienced in 2022.
