[Digital Today reporter Chi-gyu Hwang (황치규)] Consumer-focused Ethereum layer2 network Abstract will shut down its chain on Dec. 15, The Block reported on Monday.

Abstract cited stalled growth, insufficient liquidity, a limited DeFi ecosystem and weak institutional adoption as reasons for the closure, the report said. More than 144 apps run on Abstract.

Abstract has also secured more than 400,000 users through partnerships with Red Bull Racing and Disney, among others.

Even so, Abstract said on X, formerly Twitter, that it had become clear a chain focused only on consumer crypto is difficult to sustain as a standalone model.

Users must move their assets off Abstract before the shutdown date. If they do not, they may not be able to access their funds.

Igloo, the parent company of Pudgy Penguins, suffered losses of tens of millions of dollars after funding Abstract over the past 18 months. Igloo began developing Abstract after raising more than $11 million in a round led by Founders Fund in July 2024. Abstract launched its mainnet in January 2025. Igloo plans to focus its resources on Pudgy Penguins and PENGU going forward.

Igloo CEO Luca Netz (루카 네츠) said it could have created a token or pursued an initial coin offering but decided not to. "A token works only when there is something that drives demand," he said. "Putting out a token without conviction is not something for the community."

The announcement comes less than a week after Paradigm-backed Ethereum layer2 Blast said it would shut down because costs were exceeding revenue.