The consumer-focused blockchain will cease operations on December 15 after Igloo invested millions in it, just days following Blast's announcement of its own closure.
By Shaurya MalwaOct 7, 2026, 12:31 a.m. EDT3 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Image of several Pudgy Penguin NFTs (Pudgy Penguins)SummaryShow- Igloo will shut down its Abstract blockchain on December 15 after investing millions in the Ethereum layer-2 network.
- Users must transfer their assets before the shutdown or risk losing access, with approximately $76 million remaining on the network as of Wednesday.
- Abstract handled over 325 million transactions but faced challenges with growth, limited institutional involvement, and inadequate fee revenue to sustain operations.
The company behind the Pudgy Penguins brand is closing its Abstract blockchain after incurring substantial losses, marking it as the second Ethereum-affiliated network to announce a shutdown within a week.
The closure of Abstract is set for December 15, and users have been advised to relocate their assets prior to this date, as any funds left on the network will become inaccessible.
Abstract operates as a layer-2 network, designed to facilitate transactions at a lower cost while batching them for Ethereum verification. It launched in January 2025, aiming to attract everyday consumers to cryptocurrency through the Pudgy Penguins fanbase.
Pudgy Penguins originated as a series of cartoon penguin NFTs, which are digital collectibles tracked on a blockchain. It is recognized as one of the most valuable NFT collections and has expanded into a global brand, including toys, games, and merchandise sold through major retailers like Walmart and Target.
— Abstract (@AbstractChain) October 6, 2026
Igloo, the parent company, had financed Abstract for approximately 18 months, according to CEO Luca Netz. The decision was made to discontinue support for the blockchain to protect the Pudgy Penguins business rather than attempt to raise additional funds through token sales.
The team cited stagnated growth, thin trading volumes, limited institutional engagement, and a small decentralized finance market as reasons for the closure.
“Even after losing 8 figures, we could have launched a token or pursued an ICO. Ultimately we decided against this,” Netz stated on X.
Netz emphasized that Igloo will now concentrate entirely on Pudgy Penguins and its associated cryptocurrency, PENGU. “We could no longer justify taking from the Pudgy Penguins business,” he explained.
The Cost of Maintaining a Blockchain
Abstract recorded over 325 million transactions, $6 billion in trading on decentralized exchanges, and 4 million wallets. It also reported that businesses on the network generated more than $40 million in revenue, with brands like Disney and Red Bull Racing involved.
However, revenue from applications does not automatically cover the costs of maintaining the underlying blockchain. For example, while a game can charge for in-game purchases and an exchange can earn trading fees, Abstract receives a smaller fee for processing these transactions.
DefiLlama data indicated that approximately $3,900 in chain fees were collected in the last 24 hours, compared to around $39,000 in revenue generated by applications on Abstract. The chain fees must cover operational costs before any profit can be realized.
At the time of launch, Netz intentionally directed developers away from financial applications toward simpler, more entertaining products, but the platform failed to attract significant liquidity despite a promising start.
“If you want to build the next DeFi application, I really recommend you use Berachain or Arbitrum. Don't come to Abstract to build those types of products because we want to specialize in fun,” he remarked previously, as reported by CoinDesk. Abstract now identifies its limited market for such applications as a significant shortcoming.
This announcement follows closely after layer-2 Blast revealed its shutdown on October 2, citing that operational costs surpassed revenue. Blast had once attracted over $2 billion in deposits and had notable backers, including Paradigm.
As of Wednesday, Abstract still had about $76 million in assets according to DefiLlama’s bridged-value metric. Users have until December 15 to transfer their holdings through the network’s migration service or bridge.
Read More: Ethereum-based Blast chain shuts down as operating ‘no longer makes sense’
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