Abstract, an Ethereum Layer 2 network operated by Igloo Inc., will shut down on December 15, 2026. The company, which created the Pudgy Penguins NFT brand, announced the closure on Tuesday, stating that funds not bridged away from the network before the deadline will be lost.
Igloo cited unsustainable economics and stalled growth as reasons for the shutdown. The team attributed the network's struggles to a restricted DeFi ecosystem, thin liquidity, minimal institutional adoption, and budget constraints relative to competitors. Despite exploring various options over the past year to achieve product-market fit, the company found insufficient demand to justify continued operation.
Performance Metrics
Abstract's metrics reflected its declining trajectory. Total value locked peaked at nearly $58 million in August 2025 but had fallen to $8.4 million at the time of the announcement. Chain revenue similarly declined, dropping from approximately $795,000 in May 2026 to about $121,000 in September. The network never launched its planned ABS token, which could have driven participation through an airdrop campaign.
Igloo stated it spent tens of millions of dollars attempting to support the network and boost adoption. The company framed the shutdown as an opportunity to redirect resources toward Pudgy Penguins, focusing on the PENGU token, NFTs, consumer goods, and themed events.
Broader Trends
Abstract's closure follows a similar announcement from Blast, another Ethereum Layer 2 network, which said it would shut down later in the month after experiencing a sharp decline in revenue. Other Ethereum scaling networks that have shut down or announced closures this year include Sophon and the gaming-focused Redstone.
