Abstract Ethereum L2 to shut down on December 15

Abstract, an Ethereum Layer 2 network developed by Igloo Inc. (the parent company of Pudgy Penguins), has announced it will shut down on December 15, 2026. The decision follows 18 months of operations that resulted in losses estimated in the tens of millions of dollars.

Despite onboarding over 400,000 users, processing more than 325 million transactions, and securing partnerships with brands such as Disney and Red Bull Racing, the network struggled to find a sustainable business model. Igloo CEO Luca Netz cited several reasons for the shutdown, including a restricted DeFi ecosystem, thin on-chain liquidity, minimal institutional adoption, and a limited budget compared to competitors.

Users holding assets on the Abstract network are urged to move their funds via the official Migration Hub or the native bridge before the December deadline. Any assets remaining on the chain after the shutdown will become permanently inaccessible. Following the closure, Igloo plans to refocus its resources on the Pudgy Penguins brand and its associated PENGU token.