Abstract, the Pudgy Penguins-backed Ethereum network, will shut down

A second Ethereum scaling network is closing in the space of a week. Abstract, a layer 2 chain built for consumer apps and backed by Igloo, the company behind the Pudgy Penguins brand, said on October 6 that it will shut down on December 15, The Block and CoinDesk reported.

The reason is money. Igloo lost tens of millions of dollars funding Abstract over 18 months, both outlets reported. The team pointed to stalled growth, thin liquidity, a small decentralized-finance market and little institutional use, and concluded that a chain devoted only to consumer crypto could not stand on its own.

Users have a deadline. Anyone holding assets on Abstract must move them off before December 15, through the network's bridge or migration service, or risk losing access. About $76 million in assets was still on the network when the closure was announced, according to CoinDesk.

Abstract raised more than $11 million in July 2024 in a round led by Founders Fund and launched in January 2025, The Block reported. Chief executive Luca Netz said the company chose not to launch a token to raise more. Igloo will put its resources into Pudgy Penguins and the PENGU token.

Blast, another Ethereum layer 2, announced its own shutdown on October 2, CoinDesk reported. Running a chain costs money every day, and fees alone have not covered it for these two.