Pudgy Penguins’ Abstract becomes second Ethereum layer 2 to shut in a week
Igloo, the company behind Pudgy Penguins, will shut its Ethereum layer-2 network Abstract on Dec. 15 after spending tens of millions of dollars and deciding not to fund it further or sell a token. The team cited stalled growth, limited trading liquidity, low institutional activity and a small DeFi market. Users must move assets before the deadline or risk losing access. Despite reporting 325 million transactions, $6 billion in decentralized-exchange volume and 4 million wallets, Abstract generated about $3,900 in chain fees over 24 hours, versus roughly $39,000 in application revenue. Igloo will focus on Pudgy Penguins and its PENGU cryptocurrency. The shutdown follows Blast’s announcement days earlier that it would close because operating costs exceeded revenue.
