Pudgy Penguins Creator Winding Down Abstract Network

Abstract Layer 2 Prepares for December Shutdown

Igloo Inc., the company behind the popular Pudgy Penguins digital collectible collection, is shutting down its EthereumETH-4.21% Layer 2 network called Abstract.

The network originally launched its mainnet in January 2025 to create a dedicated space for consumer-focused crypto applications.

Abstract will officially go offline on December 15, 2026. Users who hold funds on the network need to transfer or bridge their assets back to Ethereum or another chain before this cutoff date. Any funds remaining on Abstract after December 15 will be permanently lost.

Why the Abstract Team Made the Decision

Running an independent blockchain requires substantial liquidity, steady user demand, and ongoing maintenance costs. The team publicly addressed the situation in a post on X, explaining that operating a standalone consumer chain became financially unsustainable over time.

The developers cited several specific challenges that impacted the network:

• Stagnant overall user growth across consumer applications
• A restricted decentralized finance (DeFi) ecosystem on the chain
• Thin liquidity and low trading volume
• Minimal interest or adoption from institutional participants
• Limited operational budgets when compared to larger competitor networks

Igloo Inc. noted that it spent tens of millions of dollars attempting to grow adoption and test different strategies over the past year. However, user demand remained insufficient to cover the high ongoing expense of running the network.

A Look at the Numbers: TVL and Network Revenue

On-chain data from Defillama shows how network activity steadily declined prior to the shutdown announcement.

Total Value Locked (TVL)—which measures the combined value of all funds deposited in applications on the chain—peaked at nearly $58 million in August 2025. By October 2026, TVL had fallen to roughly $8.4 million.

Monthly chain revenue followed a similar downward trajectory. Revenue reached its highest point in May 2026 at about $795,000, but dropped to approximately $121,000 by September 2026.

The network also never officially released its long-planned ABS token. As a result, it could not utilize token airdrops or liquidity rewards to incentivize network usage.

Past performance of digital assets or underlying protocols is not indicative of future results. You can review live market metrics and token details at bitkub.com/th/market/ETH.

Refocusing on Pudgy Penguins and PENGUPENGU-5.52%

In a separate communication on X, Igloo Inc. framed the winding down of Abstract as an opportunity to concentrate resources on its core business model.

By closing the network, the organization can reallocate its capital and development talent directly back into growing the Pudgy Penguins brand, the PENGU token, physical consumer toys, and community events.

Wider Industry Context Across Layer 2 Chains

Abstract is part of a growing trend of specialized Ethereum Layer 2 networks winding down operations during 2026 due to stiff competition and fragmented liquidity.

Just days before Abstract's announcement, the team behind Blast revealed they would close their network later this month following a sharp drop in user retention and revenue. Other networks, including Sophon and the gaming-focused Redstone chain, have also shared plans to sunset operations this year.