Pudgy Penguins' Abstract blockchain will shut down on December 15, becoming the second Ethereum layer 2 to close within a week, according to CoinDesk.
Igloo, the company operating Abstract, spent tens of millions of dollars supporting the consumer-focused blockchain before the decision to shut it down. The closure follows Blast's announcement that its own network was no longer worth operating, marking a rapid deterioration in viability for these newer layer 2 solutions.
Abstract launched as a blockchain aimed at mainstream users, backed by the prominent Pudgy Penguins NFT brand. The platform required substantial financial backing from Igloo to maintain operations. The timing of these back-to-back closures signals challenges facing emerging Ethereum scaling solutions in competing for users and liquidity.
Layer 2 networks build on top of Ethereum to process transactions faster and cheaper than the base layer. The sequential failures of Blast and Abstract within days highlight how difficult it has become for newer entrants to sustain operations in an increasingly competitive scaling ecosystem. Both projects had sought to attract users through developer incentives and consumer-friendly features, but those strategies ultimately proved insufficient to maintain viability.
The closures represent significant setbacks for stakeholders who backed these networks, including Igloo's substantial investment in Abstract. Users of these platforms will need to migrate assets and positions to alternative layer 2 solutions or back to Ethereum mainnet before the December 15 shutdown date.