Pudgy Penguins' Ethereum Layer-2 Abstract Is Shutting Down

Abstract, the Ethereum layer-2 network built by Igloo Inc. — the parent company of NFT brand Pudgy Penguins — will shut down on Dec. 15, according to an announcement from the project. Users have been told to transfer assets off Abstract using the network's Migration Hub or its native bridge, which the team said includes a three-hour delay. The project warned that any funds remaining on the chain after the deadline will be inaccessible.

The team attributed the decision to an inability to scale beyond consumer-focused use cases, pointing to a limited DeFi ecosystem, thin on-chain liquidity, low institutional crossover and a smaller budget relative to competing L2s. Igloo framed Abstract's model of serving purely consumer crypto applications as unsustainable on its own.

By its own metrics, Abstract handled more than 325 million transactions, facilitated over $6 billion in decentralized exchange volume, generated upwards of $40 million in ecosystem revenue, and saw the creation of more than 4 million Abstract Global Wallets. The network also attracted brand activity, including initiatives with Red Bull Racing and Disney.

Abstract is a ZK-rollup, which batches transactions off-chain and posts proofs to Ethereum. The shutdown follows a similar announcement from Blast, a Paradigm-backed L2 that said it would wind down after finding operating costs exceeded revenue. Ahead of the Dec. 15 closure, Abstract said its engineers will assist projects built on the network with migration to other chains and warned users to be vigilant against impersonators, fake migration sites and fraudulent messages purporting to represent the project.