Ethereum L2 Abstract to Shut Down December 15 Amid Growth Challenges
Ethereum layer-2 network Abstract has announced it will shut down its chain on December 15, citing stalled growth and insufficient liquidity. The company warned users that they risk losing access to their funds if they do not bridge their assets to another network before the shutdown. Despite deploying over 144 applications and attracting more than 400,000 users through partnerships with brands like Red Bull Racing and Disney, Abstract concluded that sustaining a standalone chain focused on consumer crypto was no longer viable.
Abstract's parent company, Igloo, which operates the NFT project Pudgy Penguins, has funded the network for the past 18 months, incurring losses in the tens of millions of dollars. Igloo CEO Luca Netz stated that the company chose not to issue an Abstract token or pursue an initial coin offering (ICO) to recoup the losses, citing a lack of demand. Netz emphasized that tokens only work when there is something to drive demand, and Abstract did not meet that criterion.
The decision to shut down Abstract comes shortly after another Ethereum layer-2 network, Blast, announced its closure due to costs exceeding revenue. Abstract launched its mainnet in January 2025, aiming to bring mainstream consumers on-chain by leveraging Pudgy Penguins’ user base. Igloo had raised over $11 million in a funding round led by Peter Thiel’s Founders Fund in July 2024 before developing Abstract.