MAU, WAU, DAU: Why Web3 Active Users Matter for Growth
A product without users is like a fish without water—it won’t survive. In Web3, simply connecting a wallet or signing up isn’t enough. True value lies in meaningful engagement, such as wallet transactions, their onchain activity on different chains, tokens, and DApps. That’s why tracking active users—measured as DAU (Daily Active Users), WAU (Weekly Active Users), and MAU (Monthly Active Users)—is essential for growth, retention, and monetization.
This guide explores how to measure and analyze key metrics in Web3, why they matter, and how to go beyond vanity numbers to uncover real product-market fit.
DAU, WAU, MAU – the core metrics for Web3 Growth
Key Takeaways
Active users (DAU, WAU, MAU) are the foundation of growth analytics in Web3.
In Web3, active = meaningful interaction onchain and offchain
A high DAU/MAU ratio signals retention and strong user engagement.
Don’t just track activity, segment and act on it using wallet intelligence tools.
GA4 is built for Web2 apps and tracks session engagement.
Formo is built for Web3 apps and tracks wallet behavior.
What is an Active User in Web3?
In Web3, an Active User (or Active Wallet) refers to a wallet address that has performed at least one meaningful onchain or in-app activity within a given time frame (e.g., daily, weekly, monthly).
But beware:
One person may control multiple wallets
Some wallets are bots or sybils
Receiving a transaction doesn’t equal engagement
DAU vs. WAU vs. MAU: Key Metrics Explained
Metric | What It Measures | Use Case |
DAU (Daily Active Users) | Unique wallets engaging daily | Social dApps, games |
WAU (Weekly Active Users) | Wallets engaging weekly | DeFi, community-driven apps |
MAU (Monthly Active Users) | Wallets engaging monthly | Dashboards, infra tools |
Distinguish between DAU, WAU, and MAU
Active User Definition
Why DAU, WAU, and MAU Matter for Web3 Growth
DAU, WAU, and MAU aren’t vanity metrics. They’re growth signals.
DAU tells you how engaging your product is on a day-to-day basis.
MAU helps assess community size, traction, and usage volume.
DAU/MAU ratio reveals stickiness and loyalty. A ratio above 20% is excellent.
In Web3, high DAU/MAU = actual product-market fit, not just hype.
Web3 Benchmarks for DAU/WAU/MAU
Web3 operates differently from Web2. In Web2, Sequoia Capital suggests a DAU/MAU ratio of 10-20%, with only a few companies exceeding 50%. In Web3, engagement varies widely by sector:
Web3 Use Case | DAU/MAU Behavior |
DeFi protocol | Low DAU/MAU – users check rates or rebalance occasionally |
NFT marketplace | High WAU during drops, but fluctuates |
DAO dashboard | High MAU, low DAU – users engage around proposals |
Web3 social | High DAU is required for stickiness and retention |
Web3 Use Cases of DAU/MAU Behavior
Tip: Don’t compare your DAU/MAU to Web2; compare it to your previous months and segment your user base.
Go Beyond DAU/MAU: Meet the Power User
Tracking DAU, WAU, and MAU is critical, but successful dApps don’t just have active users — they have power users. These are highly engaged users who return frequently and drive product success.
Instead of just looking at average engagement, a power user curve helps visualize user distribution. A “smiling” power user curve (where a significant portion of users are highly active) indicates strong community loyalty. If the curve is flat, it signals low engagement and high churn, requiring product or incentive improvements.
Example of a power user curve
Why MAU Impacts Web3 Product Performance
Monthly Active Users (MAU) is a key indicator of user engagement, adoption, and product-market fit in Web3. A high or growing MAU signals strong community interest and healthy onchain activity, while a low MAU may indicate retention or usability issues.
Retention & Wallet Churn
Retention tracks how many users stick with your product over time. Retention in Web3 is about wallet activity.
Comparing new wallet interactions vs. MAU/DAU helps you:
Identify wallet churn: Are users disappearing after an airdrop or staking period?
Track engagement stickiness: Are wallets consistently interacting with your dApp?
Example of customer retention rate formula
Onchain Engagement & Stickiness
Different Web3 products have different usage frequencies:
DeFi apps may see periodic interactions (e.g., yield farming, staking withdrawals).
NFT marketplaces may spike during minting events but drop afterward.
DAOs may see engagement only around governance votes.
Tracking DAU/MAU helps monitor how sticky your dApp is. If engagement is low, consider:
Personalized notifications
Community-driven features
Gamification and rewards
Monetization & Revenue Forecasting
If your MAU is growing but revenue isn’t, your monetization strategy may need refining. Questions to ask:
Are users finding value in the dApp?
Are transaction fees or staking requirements creating friction?
Is the tokenomics model encouraging long-term holding?
Improving your pricing, wallet messaging, and trial experiences can boost conversions.
For Web3 projects, MAU isn’t just a metric—it impacts token demand, DAO governance participation, and protocol fees. A growing active user base suggests a healthier ecosystem, but without engagement and retention, growth won’t translate to sustainability. Regularly analyzing MAU with onchain data to optimize marketing spend, secure funding, and drive sustainable growth.
Active Users & Product-Led Growth (PLG)
In a PLG strategy, the product itself drives user acquisition, engagement, and retention. The more active users interact with the product, the more value they get, leading to organic growth through word of mouth, community effects, and data-driven optimizations.
Why Web3 Active Users Matter in PLG
In Web3, growth comes from users experiencing real value, not ads. Metrics such as DAU, WAU, and MAU are critical for tracking engagement, retention, and conversion.
Web3 product analytics tools like Formo help you track active wallets, analyze user interactions with dApps, and bridge onchain activity with Web2 engagements.
Using Active User Metrics to Optimize PLG
Tracking MAU, DAU, and WAU is just the beginning. The real power comes from analyzing trends and acting on insights:
Scenario 1: MAU is growing, but wallet retention is low.
A successful marketing campaign brings in new users, but if time-to-value (TTV) is too long, they’ll leave before realizing the product’s value. Solution: Reduce onboarding friction and help users reach the “aha” moment faster.
Scenario 2: High engagement but low transaction volume.
The incentive model might be flawed if wallets interact frequently but don’t contribute to liquidity. Solution: Improve staking yield structures
Scenario 3: DAU/WAU ratio is low.
Users who engage only occasionally may not see recurring value in your dApp. Solution: Use nudges, notifications, and personalization to encourage habitual use.
Lens Protocol: DAU/MAU Ratio and User Engagement
As of late 2022, Lens Protocol had over 160,000 unique users, with daily active users (DAU) peaking at over 12,000 and averaging around 1,100. This suggests a DAU/MAU ratio ranging from approximately 0.7% to 7.5%, depending on the specific month and user activity levels.
In early 2023, the platform experienced a surge in activity, with daily active users reaching up to 20,000. Following the suspension of free Profile NFT minting in April 2023, daily active users declined to around 3,000, despite having over 100,000 total profiles. This indicates a DAU/MAU ratio of less than 3%, highlighting challenges in user retention and engagement.
These fluctuations underscore the importance of monitoring DAU/MAU ratios in Web3 platforms to assess user engagement and the effectiveness of growth strategies.
Source:
GA4 vs. Formo: How “Active Users” Are Measured
Tool | Google Analytics 4 (GA4) | Formo Analytics |
User Type | Logged-in user or anonymous web visitor | Wallet address |
Active User Definition | Any user with an engaged session (10+ seconds, 1+ conversion event, or 2+ pageviews) | Any wallet that performs a meaningful onchain or in-app activity |
Examples of “Activity” | Scrolling, clicking, and watching a video | Sending/receiving transactions, connecting wallet, and interacting with smart contracts |
User Identifier | Cookie-based (client ID) or user ID | Wallet address (can be cross-chain or pseudonymous) |
Time Frames | Real-time, Daily, Weekly, Monthly | Real-time, Custom timeframes (DAU/WAU/MAU) |
Segmentation | Device, session, and user behavior filters | Device, country, onchain actions, wallet balance. |
The differences between active users in GA4 and Formo Analytics
In GA4 (Google Analytics 4), an "active user" must have an engaged session. In Formo, we define an active wallet as one performing meaningful onchain or in-app activity.
How to Track MAU in Formo
DAUs/MAUs are unreliable in crypto due to pseudonymity and Sybil attacks. To filter real users, exclude dispersion-funded addresses, remove transient ones with near-zero balances, and flag bots by transaction patterns.
Formo simplifies Web3 analytics by tracking active wallets beyond simple transaction counts. Here’s how:
Go to the "Overview" section for a detailed user breakdown.
Select a time range and apply filters.
Track DAU, MAU, or WAU by day, week, or month.
Tracking active users in Formo Analytics
Once you track active wallets, you can segment them by transaction volume, token holding behavior, and onchain activity, unlocking deeper insights for growth.
From Insights to Action: Turn Data into Growth
Tracking DAUs, MAUs, and WAUs by cohort is key to refining your PLG strategy and driving sustainable growth. It all starts with measuring active users, setting benchmarks, and optimizing user flows to build better products. Formo empowers Web3 teams with deep user insights, helping you identify active users, segment them by behavior, and optimize your product-led gr. Leverage data-driven decisions to thrive your dApp’s success.
Further sources:
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Additional FAQs
1. What’s the best way to define an “active” wallet?
Start by mapping key actions (e.g., page views, connect wallet, transactions) to your product’s value. Only count wallets performing those actions, not just any transaction.
2. How often should I measure active users?
It depends. Use DAU for social or utility dApps, WAU/MAU for seasonal or financial apps. Track trends over time, not just snapshots.
3. Can I track offchain actions too?
Yes, with tools like Formo, you can combine wallet data with offchain actions (social connection, UTM sources) for a full user journey.
4. What are the signs of bot or sybil wallet activity?
Watch for:
High frequency, low diversity actions
Zero-value transactions
Many wallets share IPs or device fingerprints
5. How do I know if my “active users” are high quality?
Segment by actions that align with your core metric (TVL, posts, volume). Power users = consistent, high-impact activity.
