Weekly Alpha #38 - The bullish case for Abstract
Latest DeFi Alphas Delivered in a Concise Newsletter.
Welcome to the latest edition of Weekly Alpha.
I deliver insights on the cryptocurrency market, emerging projects, macroeconomic trends, and DeFi directly to your inbox.
In this edition of The Weekly Alpha:
✳️ The bullish case for Abstract
📆 This week in DeFi
🎧 Pocasts of the week
🔓 Token Unlocks
The bullish case for Asbtract ✳️
When discussing the current crypto landscape, it's essential to filter out the noise—particularly the explosion of unsustainable meme coins flooding the market. Beyond this chaos, one of the biggest challenges facing crypto adoption is user experience. Interacting with blockchains often involves confusing signature requests, leaving users uncertain about what they’re approving. It’s clunky, unintuitive, and a significant barrier to broader adoption.
Solana attempted to address these UX issues, but the chain has become largely driven by speculative meme-coin trading. This reliance on “casino economics” raises concerns about long-term sustainability.
In contrast, Abstract—a new Layer 2 solution built on Ethereum with the zk-stack—presents a compelling vision for the future. Although currently at stage 0 of decentralization, Abstract has ambitious goals to become a fully permissionless Layer 2. While that journey will take time, it’s a long-term project worth paying attention to.
Why I’m Bullish on Abstract
The primary reasons for my optimism are Abstract’s focus on user experience and its strong community.
Seamless Login with Account Abstraction
Abstract utilizes account abstraction with a Privy login system, allowing users to bypass cumbersome signature requests. This creates a smooth, user-friendly onboarding experience that drastically lowers entry barriers for newcomers.
Discovery Dashboard
Abstract offers an excellent dashboard where users can discover new apps, interact with the blockchain, and earn points weekly through streaming activities. This design keeps the experience approachable, preventing users from feeling overwhelmed by the myriad of decentralized applications (dApps).
Overcoming the Crypto-Native Bubble
While many crypto-native users will likely flock to Abstract in hopes of a future airdrop, the real challenge lies in attracting non-crypto natives. To succeed, Abstract must continue refining its seamless user experience. I’m confident that Luca and the Abstract team are up to the task.
Abstract reminds me of Infinex in its near-consumer-ready approach to blockchain interaction. For blockchains to deliver real value, they should function primarily as backend infrastructure, providing sufficient decentralization to safeguard against the rising tide of authoritarian regimes. Even though this may not seem urgent in the West, laying a strong foundation now is crucial.
The Streaming Experience: A Genius Move
Initially, I was puzzled by the inclusion of a streaming feature on the Abstract dashboard. However, upon reflection, it’s a brilliant marketing strategy. Why? Users can directly tip content creators with Pengu, ETH, or USDC, with funds going straight into creators' wallets. This functionality could attract a new, non-crypto-native audience looking for alternative income streams.
In the long run, this could create a snowball effect, drawing in content creators who bring fresh audiences unfamiliar with blockchain technology. Abstract would be wise to secure partnerships with major non-crypto content creators once the streaming platform stabilizes.
Final Thoughts
Overall, the user experience on Abstract is impressive. The tipping system is smooth and intuitive, giving practical utility to the PENGU token. Abstract’s thoughtful approach to UX, combined with innovative features like streaming and tipping, positions it as a strong contender for mass adoption in the blockchain space.
There’s still work to be done, but Abstract’s foundation is solid. If it continues on this trajectory, it could become one of the most user-friendly and impactful ecosystems in crypto.
What I’m reading this week 📆
News 🗞️
In this section, I curate the week's most impactful DeFi news. This way, you can bypass the chatter on Twitter and concentrate on the essential updates.
Uniswap v4 launches on 12 chains - read
Ethereum’s native rollups promise trustless scalability - read
Hyperliquid Flips Ethereum in Fees and Revenue as Token Rallies - read
Venmo Co-Founder Releases Fair-Launch Token for New Platform - read
Strategic Bitcoin reserve: Not only for countries but for protocols - read
What I’m listening this week 🎧
In this section, I feature the week's most compelling DeFi podcasts and videos.
The Rollup: 2025 Crypto & AI Predictions with Haseeb Qureshi
Bankless: Bitcoin on the US Balance Sheet?! Trump’s Crypto Stockpile Explained
Scott Melker: Bitcoin Will Crash Before It Skyrockets To $250K!
Bell Curve: DeepSeek’s Impact, the JellyJelly Launch, and Crypto Payments
Token Unlocks 🔓
XDC (5.36% of circulating supply) - Feb 05
MOVE (2.17% of circulating Supply) - Feb 09
APT (1.97% of circulating supply) - Feb 10
Wrapping up for this week. For daily DeFi updates, follow me on Twitter
None of the information in this newsletter constitutes financial advice. While I personally use most of the protocols that I discuss, it's important to understand that they involve substantial risk. Don’t invest what you can’t afford to lose