Pudgy Penguins' Abstract Layer 2 to Shut Down Following Multi-Million Dollar Losses

Key Facts

1The Ethereum Layer 2 network Abstract will shut down on Dec. 15 after parent company Igloo spent tens of millions supporting it.

2This marks the second Ethereum Layer 2 shutdown in a single week, following a similar announcement from the Blast network.

The Ethereum Layer 2 network Abstract will shut down on December 15, 2026, after parent company Igloo spent tens of millions of dollars supporting its operations. Reuters reported that the closure follows a determination that the network's costs were no longer sustainable, marking the second such shutdown in the Layer 2 sector within a single week.

The move follows a similar announcement from the Blast network, highlighting a broader trend of consolidation and financial strain within the Ethereum scaling ecosystem. Igloo stated it would pivot its full focus back to the Pudgy Penguins brand rather than continuing to fund the network's losses or pursuing further token sales to raise capital.