Pudgy Penguins' Ethereum Layer-2 Abstract Is Shutting Down

In brief

• Abstract, the Ethereum layer-2 from Pudgy Penguins parent company Igloo Inc., will shut down Dec. 15. Funds not bridged off by then will be inaccessible.
• The team blamed a limited DeFi ecosystem, thin liquidity, little institutional crossover and a smaller budget than rivals.
• It's the second Ethereum layer-2 to announce a shutdown in days, following Paradigm-backed Blast.

Abstract, the Ethereum layer-2 network built by Pudgy Penguins parent company Igloo Inc., is shutting down after struggling to scale beyond its consumer crypto niche.

The team announced on X that the chain will go dark on Dec. 15. Users must move their assets off the network before then through Abstract's Migration Hub or its native bridge, which carries a three-hour delay. Funds left behind after the deadline will be inaccessible, the team warned. Abstract's engineers will also help projects built on the network migrate to other chains.

Abstract said its growth stalled because of a limited DeFi ecosystem, thin on-chain liquidity, little crossover with institutions and a smaller budget than rivals. "Operating a chain focused exclusively on consumer crypto has ultimately proven to be unsustainable as a standalone model," the team wrote.