Pudgy Penguins’ Abstract becomes second Ethereum layer 2 to shut in a week
The Abstract layer-2 network, backed by the Pudgy Penguins NFT brand, will shut down on December 15 due to stalled growth and market challenges. The parent company, Igloo, plans to refocus its resources on its core NFT business and the PENGU cryptocurrency.
Why it matters
This reflects the broader consolidation and struggle for sustainability among niche blockchain infrastructure projects in the current crypto market.
Abstract will stop operating Dec. 15. The team has told users to move their assets before then, warning that funds left on the network would become inaccessible.
Abstract is a so-called layer-2 network, a separate system that handles transactions cheaply and sends batches to Ethereum for verification. It launched in January 2025 with a bet that the Pudgy Penguins’ audience could bring ordinary consumers into cryptocurrency applications.
Pudgy Penguins began as a collection of cartoon penguin NFTs, digital collectibles whose ownership is recorded on a blockchain. It ranks among the most valuable NFT collections and has grown into a global brand spanning toys, games and merchandise, with products sold by retailers including Walmart and Target.
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