Pudgy Penguins' Layer 2 network, Abstract, is facing challenges attracting liquidity shortly after its mainnet launch.

Only $33 million in ether and stablecoins are currently deployed on the platform, a figure significantly lower than anticipated.

Key takeaways:

• Low Liquidity: Abstract's Total Value Secured (TVS) stands at a mere $33 million.
• Focused Strategy: The CEO has explicitly stated Abstract is not targeting developers of complex DeFi applications, prioritizing instead "fun, viral, simple" projects. He recommends other Layer 2 solutions like Arbitrum or Berachain for DeFi development.
• Token Price Decline: The Pudgy Penguins native token (PENGU) has experienced a sharp drop, down 7.6% in 24 hours and 41% over the past week, potentially reflecting investor sentiment surrounding Abstract's performance.
• Wider NFT Market Weakness: The underperformance of Abstract aligns with a broader slowdown in the NFT market. OpenSea's daily trading volume, despite a recent uptick, remains significantly below its 2020 peak.

This combination of low liquidity, a niche project focus, declining token price, and a generally weak NFT market suggests Abstract faces significant hurdles in achieving its growth targets.