Ethereum layer-2 (L2) blockchain Abstract announced a plan on October 6 Coordinated Universal Time (UTC) to wind down operations. The chain, which has been backed by Igloo, the operator of NFT project Pudgy Penguins, is scheduled to cease operations on December 15, 2026.
The operators said Abstract had attracted more than 144 apps and over 400,000 users. However, they said that stagnant growth, insufficient liquidity, a limited decentralized finance (DeFi) ecosystem and low institutional participation meant that independently operating a chain focused on consumer crypto-asset services was not sustainable.
Igloo CEO Luca Netz said the company had lost tens of millions of dollars while supporting Abstract over the past 18 months. It decided not to issue a new token to keep the chain running and plans to focus its resources on Pudgy Penguins and PENGU-related businesses.
Ethereum L2 Blast had also announced a shutdown on October 2. Blast said the cost of maintaining the chain exceeded its revenue and that it had found no clear path to making the business sustainable.
Abstract told users to bridge their assets to another chain before the shutdown date, warning that funds not moved by the deadline would become inaccessible. The announcement did not specify the value of assets currently remaining on the chain or a detailed process for recovering funds after the shutdown.