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.
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.
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.
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 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:
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Additional 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 or identity. Common examples include “Top Base User,” “DEX User,” or “Bot.” Wallet labels help transform anonymous wallet addresses into meaningful user personas.
2. How do wallet labels differ from wallet tags?
Wallet labels describe who a wallet is (e.g., “Gamer,” “ETH Staker”). and what the wallet does (e.g., “Top 10% on Base,” “Airdrop Farmer”). Each wallet has multiple evolving labels based on activity.
3. Why are wallet labels important in Web3?
Wallet labels add critical context to otherwise anonymous addresses. They enable:
Accurate user segmentation
Fraud and bot detection
Personalized product experiences
Targeted marketing and analytics
Labels help teams move from raw data to meaningful insights faster.
4. Who uses wallet labels?
Wallet labels are used by a wide range of stakeholders in the Web3 ecosystem, including:
Product: to tailor user experiences and prioritize features
Marketing: to segment and target audiences
Data Analysts: to enrich dashboards with user context
5. What tools offer wallet labeling features?
Several platforms provide wallet labeling capabilities:
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
