Pudgy Penguins' Abstract to shut Dec. 15, second Ethereum layer 2 to close in a week
In brief
- Igloo will shut its Abstract blockchain on Dec. 15 after funding it for about 18 months.
- Abstract users must move assets off the chain before Dec. 15 or risk losing access.
- DefiLlama showed about $3,900 in daily chain fees against $39,000 in app revenue.
- Blast announced its own layer-2 shutdown on Oct. 2, citing costs above revenue.
Users have until Dec. 15
Abstract will stop operating on Dec. 15, and the team has told users to move their assets before then, warning that funds left on the network will become inaccessible. Holdings can go out through the network's migration service or bridge. That isn't a small pool of money. Abstract still had about $76 million in assets under DefiLlama's bridged-value measure on Wednesday, as cited by CoinDesk.
CEO Luca Netz said in posts on X that Igloo had funded Abstract for about 18 months. The company decided against continuing to support the chain at the expense of its Pudgy Penguins business (and against selling a token to raise more money).
"We could no longer justify taking from the Pudgy Penguins business"
Netz said Igloo will now put its full focus on Pudgy Penguins, its digital collectibles and the PENGU token.
Big usage numbers, thin chain fees
Abstract launched in January 2025 on a bet that the Pudgy Penguins audience could bring ordinary consumers into crypto apps. By its own count, the network logged more than 325 million transactions, $6 billion in decentralized-exchange trading and 4 million wallets. Abstract also said businesses on the network generated more than $40 million in revenue, with brands including Disney and Red Bull Racing taking part.
The economics underneath didn't hold up.
DefiLlama data cited by CoinDesk showed roughly $3,900 in chain fees over the latest 24 hours, against about $39,000 in revenue for applications on Abstract. Money an app earns doesn't automatically pay for the blockchain beneath it; Abstract only collects the smaller transaction-processing charge. The team cited stalled growth, thin trading markets, limited institutional activity and a small DeFi market among its reasons for closing.
Part of that goes back to launch. Netz steered developers away from financial apps toward simple, entertaining products, and the platform didn't attract meaningful liquidity.
Blast went first
Layer-2 Blast announced its own shutdown on Oct. 2, saying operating costs exceeded revenue, CoinDesk reported. Blast once pulled in more than $2 billion in deposits and counted funds such as Paradigm among its backers.
Pudgy Penguins ranks among the most valuable NFT collections, with products sold by retailers including Walmart and Target, and Igloo says that's where its focus goes now.
Frequently asked questions
Why is Abstract shutting down?
Igloo, the company behind Pudgy Penguins, said it lost tens of millions of dollars funding Abstract over about 18 months. The team cited stalled growth, thin trading markets, limited institutional activity and a small DeFi market. Igloo decided against funding the chain at the expense of Pudgy Penguins or selling a token to raise more money.
What happens to funds left on Abstract after Dec. 15?
Abstract will stop operating on Dec. 15, and the team warned that funds left on the network will become inaccessible. Users can move holdings before then through the network's migration service or bridge. DefiLlama's bridged-value measure still showed about $76 million in assets on the chain on Wednesday.
