Wallet Labels: The Ultimate Guide to Identifying and Understanding Your Web3 Users
Wallet Labels: The Ultimate Guide to Identifying and Understanding Your Web3 Users
Wallet Labels: The Ultimate Guide to Identifying and Understanding Your Web3 Users

Updated on

Updated on

23 Sept 2025

23 Sept 2025

Share this post on

Share this post on:

Wallet Labels: The Ultimate Guide to Understanding Web3 Users

Wallet Labels: The Ultimate Guide to Understanding Web3 Users

Wallet Labels: The Ultimate Guide to Understanding Web3 Users

In Web3, data is abundant, but context is often hidden. Wallet addresses are pseudonymous, making it difficult to understand who your users are, what they care about, or how to engage them. Wallet labels solve this by turning anonymous wallets into identifiable, actionable personas. They unlock behavioral insights, enable user segmentation, and power targeted strategies that drive product-led growth.

Wallet Labels provide valuable context and clarity to raw onchain data. Labels help you understand your onchain users so you can create granular segments and target qualified users in your Ideal Customer Profile (ICP.)

Key Takeaways

  • Wallet labels assign meaningful categories to wallets based on behavior, usage, and reputation.

  • Labels help identify user segments: new users, power users, bots, whales, stalkers, DeFi traders.

  • Platforms like Formo leverage wallet labeling to enrich raw onchain data. Wallet labels make user insights more accessible for product and marketing teams.

  • Wallet labels are essential for user behaviour analytics, marketing performance measurements, and roadmap planning.

Wallet labels categorize wallets by behavior, turning raw addresses into actionable user segments and profiles.

Wallet labels categorize wallets by behavior, turning raw addresses into actionable user segments and profiles.

What Are Wallet Labels?

Wallet labels are metadata-driven identifiers that describe a wallet's role, behavior, or reputation in Web3. More than just tags, they provide deep context into the identity behind a wallet address—turning raw blockchain data into human-readable insights.

Example Labels:

  • Top 10% Base User

  • Perps Trader

  • NFT Whale

  • Bot

  • Minnow

  • OG

  • Returning

  • Whale

  • New

  • Active

These labels are useful across DeFi, NFT marketplaces, trading platforms, and analytics dashboards to understand wallet activity at a glance. 

Transform anonymous wallet visitors into high-value users with wallet labels.

Transform anonymous wallet visitors into high-value users with wallet labels.

Wallet labels are descriptors that capture both identity and behavior. Wallet labels help teams:

  • Add context to blockchain addresses

  • Segment users by traits, roles, and actions

  • Track lifecycle and engagement over time

Labels can be static (e.g., “Coinbase Wallet”) or dynamic (e.g., “New User – Joined Last 7 Days”), and each wallet can have multiple labels that evolve with activity.

Use labels to:

  • Distinguish wallet types (e.g., user vs. contract)

  • Identify user roles (e.g., investor, builder, DAO)

  • Build high-level segments

  • Track product milestones or campaign engagement

  • Identify and re-engage user cohorts

  • Enable behavioral segmentation and personalized experiences

Wallet labels add behavioral context and clarity to blockchain addresses.

Wallet labels add behavioral context and clarity to blockchain addresses.

Wallet labels turn anonymous wallets into rich user profiles—unlocking segmentation, targeting, and analytics across the user journey.

How Wallet Labels Work

Wallet labeling systems combine multiple signals to assign accurate identities to wallets. Every tracked wallet is automatically labeled using a combination of:

  • Onchain activity: Trades, swaps, staking, mints

  • Protocol interactions: DEXs, bridges, NFT marketplaces

  • Wallet traits: Token holdings, transaction frequency, L2 usage

  • Reputation signals: ENS domains, proof-of-personhood, verification status

Wallet labels are refreshed regularly to stay up-to-date..

Example:
A wallet that frequently swaps on GMX and holds staked ETH might be labeled as:
Perp DEX User, ETH Staker, Top 10% on Base

Why Wallet Labels Matter

In Web2, identity is tied to personal data. In Web3, users are pseudonymous—represented by wallet addresses. A single user might hold multiple wallets, some of which may be:

  • Automated bots

  • Dormant/inactive

  • High-value whales

  • Exchange-owned

  • Airdrop farmers

Wallet labels help teams distinguish signal from noise and unlock real user intelligence.

With wallet labels, you get:

  • Behavioral context: Understand actions, not just volume

  • Accurate segmentation: Filter out bots and low-quality users

  • Smarter product decisions: Focus on your actual ICP

  • Higher ROI marketing: Target the right onchain audiences

Key Benefits of Wallet Labels

Wallet labels do more than just tidy up your address list — they transform how your team understands and interacts with users.

Product and User Insights

Wallet labels transform raw blockchain data into more accessible insights, helping product managers, marketers, and founders make informed decisions. Whether you’re tracking retention, usage, or conversion, labels give you the “who” behind the “what.”

Personalization

Wallet labels allow you to display personalized context directly in the UI. Instead of showing a generic experience, you can use wallet labels to tailor your onboarding flow to make the user experience clear and engaging.

Combat Fraud

By labeling suspicious patterns such as high-frequency bots, Sybil attackers, or known airdrop hunters, you can quickly detect and mitigate fraudulent activity. Wallet labels are especially useful in token launches, DAO voting, or reward distribution, where manipulation is common.

Enhance Targeting

Not all wallets are created equal. Labels help you segment wallets by behavior — whether that’s a DeFi power user or a first-time user. With better segmentation, your marketing and incentive campaigns become far more targeted and effective.

Wallet Labeling Tools

Platform

Description

Formo

Automatic wallet labels for every user in your audience based on onchain activity, ENS profiles, and wallet metadata


Flipside Crypto

Community-driven labels with off-chain enrichment

DappRadar

Wallet Interaction Labels to identify the amount of human and bot activity within an ecosystem

Use Cases for Wallet Labels

Wallet labels unlock powerful insights across product, marketing, analytics, and investment teams. By transforming anonymous wallet addresses into meaningful identities, teams can make data-driven decisions.

Here’s how different stakeholders can use wallet labels to level up their work:

For Web3 Product Teams

Product teams rely on accurate user insights to build features that matter. Wallet labels make it possible to:

  • Personalize onboarding flows based on user type — e.g., show different welcome screens for DeFi users vs. NFT collectors

  • Tailor dashboards or product experiences to user behavior (e.g., traders vs. stakeholders)

  • Clean conversion metrics by filtering out bots, exchanges, or airdrop farmers from your funnel

By labeling wallet types, product teams can focus on real users and accelerate product–market fit.

For Web3 Marketing Teams

Wallet labels help Web3 marketers run more precise, high-ROI growth campaigns that drive real impact. With better segmentation, marketers can:

  • Target campaigns to wallet segments like whales, top 10% Base users, or DeFi-native wallets

  • Re-engage dormant users by identifying wallets that have dropped off and trigger personalized recovery nudges with wallet messaging

Labels give you the insights you need to move beyond generic lists and build laser-focused audience segments that convert.

For Web3 Data Analysts

Web3 analysts often deal with raw data that lacks context. Wallet labels enrich data with human-readable context, allowing you to:

  • Get accurate user activity metrics by breaking down who’s doing what onchain

  • Segment users by type — e.g., DeFi degens, power users, returning users 

  • Evaluate campaign performance and protocol health based on user profiles and wallet scoring  instead of just transaction volume

  • This means more accurate reporting, better dashboards, and sharper insights.

Wallet labels bring clarity to blockchain data, turning anonymous addresses into actionable personas. Formo transforms raw data into wallet labels and wallet profiles for leading crypto product and marketing teams. Get access to a unified Web3 user intelligence layer and make smarter, data-driven decisions. 

Additional reading: 

Follow Formo on LinkedIn and Twitter, and join our community to learn how you can turbocharge growth onchain!

FAQs

1. What is a wallet label in Web3?

A wallet label is a static identifier assigned to a blockchain wallet that defines its role, behavior, or identity. Examples include “Top Base User,” “DEX Trader,” or “Bot.” By labeling wallets, projects can transform anonymous addresses into actionable user personas, enabling better segmentation, analytics, and growth strategies.

2. How do wallet labels differ from wallet tags?

Wallet labels describe who a wallet is (e.g., “Gamer,” “ETH Staker”) and what it does (e.g., “Top 10% on Base,” “Airdrop Farmer”). In contrast, wallet tags are usually simpler markers or categories for grouping activity. Each wallet can have multiple labels that evolve over time based on behavior, providing richer context for analysis and targeting.

3. Why are wallet labels important in Web3?

Wallet labels add critical context to otherwise anonymous addresses, helping teams:

  • Segment users accurately

  • Detect fraudulent activity and bots

  • Personalize product experiences

  • Target marketing campaigns and analytics more effectively
    By moving from raw wallet addresses to labeled personas, Web3 teams gain actionable insights faster and can make better product and marketing decisions.

4. Who uses wallet labels?

Wallet labels are used across the Web3 ecosystem by:

  • Product teams – to prioritize features and tailor user experiences

  • Marketing teams – to segment audiences and run targeted campaigns

  • Data analysts – to enrich dashboards with contextual user insights
    Labels provide a unified lens across functions, improving alignment between growth, product, and analytics efforts.

5. What tools offer wallet labeling features?

Popular platforms for wallet labeling include:

  • Formo – Automatic labels based on onchain activity, ENS profiles, and wallet metadata

  • Flipside Crypto – Community-driven labels with off-chain enrichment

  • DappRadar – Wallet interaction labels that identify human vs. bot activity
    These tools enable teams to enrich user data, segment audiences, and drive data-driven growth.

6. How are wallet labels created and updated?

Wallet labels are typically generated by analyzing onchain activity, transaction patterns, and wallet metadata. They can also incorporate off-chain data such as social profiles or community participation. Labels are updated over time as wallets interact with new protocols, change holdings, or engage in different behaviors, ensuring insights stay relevant.

7. Can wallet labels help with fraud prevention?

Yes. By identifying bots, Sybil accounts, or suspicious trading activity, wallet labels allow teams to prioritize genuine users and reduce risk. Labels can flag abnormal behavior, help enforce protocol rules, and protect incentives like airdrops or staking rewards from being exploited.

8. How do wallet labels enhance marketing and product strategies?

Wallet labels enable precise audience segmentation, allowing marketing teams to send personalized campaigns and incentivize high-value users. Product teams can also use labels to tailor experiences, prioritize features, and monitor adoption trends. This results in higher engagement, better retention, and more efficient growth across Web3 applications.

Table of contents

Share this post

Share this post

Share this post

Share this post

Read More

Read More

Supercharge your growth onchain

Measure what matters most and get answers in less time.

Supercharge your growth onchain

Measure what matters most and get answers in less time.

Supercharge your growth onchain

Measure what matters most and get answers in less time.