⛔️ Another L2 couldn’t survive reality
The Abstract team, the Ethereum L2 backed by the owners of Pudgy Penguins, announced that the network will shut down on December 15, 2026
The reason is rather mundane: growth has stalled, liquidity is low, there’s almost no institutional demand, and maintaining the network costs more than it earns. Igloo has already lost tens of millions of dollars on the project
This is the second notable L2 in a week — earlier, Blast announced it was shutting down
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The Abstract team, the Ethereum L2 backed by the owners of Pudgy Penguins, announced that the network will shut down on December 15, 2026
The reason is rather mundane: growth has stalled, liquidity is low, there’s almost no institutional demand, and maintaining the network costs more than it earns. Igloo has already lost tens of millions of dollars on the project
This is the second notable L2 in a week — earlier, Blast announced it was shutting down
$ETH
$PENGU
$USDC