Abstract, the Ethereum layer 2 network built by Pudgy Penguins parent Igloo Inc., will shut down on Dec. 15. The team said on X on Tuesday that users who have not bridged assets out by then will lose access to their funds.
That puts a deadline on the assets still sitting on the chain. According to L2BEAT data cited in the report, Abstract held roughly $48 million shortly before the announcement. The headline’s reference to $47 million reflects a nearby figure, but the body of the report points to about $48 million.
Why Igloo is closing Abstract
Abstract said growth had started to stall as the network struggled with a narrow DeFi offering, thin liquidity, limited institutional participation, and less capital to deploy than competing chains.
After a year of trying to make the network scale, the team said it faced a choice: keep draining resources into a chain that was operationally unsustainable and not scaling, or shut it down.
In a post on X, Igloo CEO Luca Netz said the company moved into consumer crypto infrastructure after acquiring Frame in the summer of 2024. He said Igloo wanted to take the mass-market playbook behind Pudgy Penguins and apply it to a blockchain.
By Abstract’s own numbers, the chain brought in more than 400,000 users through tie-ins with Red Bull Racing and Disney, and processed more than 325 million transactions.
Netz says Igloo funded the chain for 18 months
Netz said Igloo had been funding Abstract for the last 18 months, something he wrote most people did not know. He also said the company lost tens of millions of dollars over two years.
He wrote that Igloo could have launched a token or run an ICO, but chose not to. Without a scalable path forward, he said, the company could no longer justify pulling resources from the Pudgy Penguins business to support Abstract.
Igloo’s full focus now shifts back to Pudgy Penguins, its NFT business, and the PENGU token, according to Netz.
How users can move funds out
Abstract directed users to its Migration Hub for withdrawals and transfers. The chain’s native bridge remains available as well, though the team said users should expect a three-hour delay.
The Migration Hub also lists Stargate, Relay, and Jumper as bridge options.
Abstract said its engineering and ecosystem teams will work with projects on the network to help them relocate. It also warned users to watch for impersonators and fake migration sites.
Another L2 shutdown days earlier
Blast, another Ethereum layer 2, said on Oct. 2 that it would shut down because operating the chain cost more than it earned. Abstract’s announcement came four days later.