A product without users won't survive. This holds true in Web3 as well.

But in Web3, simply connecting a wallet isn't enough. True value lies in meaningful engagement like transactions and onchain activity, not just wallet connects.

Daily Active Users (DAU), Weekly Active Users (WAU), and Monthly Active Users (MAU) are essential metrics for tracking growth, retention, and monetization for any Web3 app. This guide will cover how to measure and analyze these key metrics for Web3 active users.

What is an Active User in Web3?

An active user in crypto (or active wallet) is a wallet address that performs at least one meaningful onchain or in-app activity within a specific timeframe.

Key considerations:

• One person can control multiple wallets

• Some wallets are bots or sybils

• Receiving a transaction isn't the same as active engagement

DAU vs. WAU vs. MAU: Key Metrics

These metrics are growth signals, not just vanity numbers. A high DAU/MAU ratio (stickiness) signals strong user engagement and product-market fit. A ratio above 20% is considered excellent.

How to Measure Web3 Active Users

Measuring Web3 active users requires tracking both onchain and offchain activities.

Web2 vs. Web3 tracking differs significantly:

• GA4 (Web2): Tracks session engagement (clicks, scrolls)

• Formo (Web3): Tracks wallet behavior (onchain users) and unifies web, product, and onchain data

Formo helps filter out bots and sybils to get accurate counts of real onchain users through advanced wallet intelligence and scoring systems.

Why Active Users Matter for Crypto Apps

Understanding active users in crypto helps optimize growth, retention, and ROI.

Key benefits:

• Identify wallet churn: Are users leaving after an airdrop?

• Track engagement stickiness: Are wallets consistently interacting with your dApp?

• Improve monetization: If MAU is growing but revenue isn't, it signals a need to refine your strategy

Lens Protocol provides a strong example of how DAU/MAU ratios reflect user engagement and growth strategy. At its peak, the platform achieved DAU/MAU ratios between 0.7% and 7.5%, demonstrating the varying engagement levels typical in Web3 platforms.

Turn Data into Growth

DAU, WAU, and MAU are foundational metrics for understanding the health of a Web3 project. The goal is to move beyond just tracking numbers to understanding the behavior of onchain users.

Formo empowers Web3 teams with deep user insights. Turn your data into growth and build better products. Get started with Formo today.

Frequently Asked Questions

What counts as an active user in Web3?

In Web3, an active user is typically a unique wallet address that interacts with a smart contract on a blockchain within a specific timeframe. Unlike web2, where activity is tied to accounts, an onchain user is defined by their wallet's transactions. This could include actions like signing a transaction, swapping tokens, or engaging with a dApp's features. Understanding this distinction is key to accurately measuring your app's usage.

How are DAU, WAU, and MAU different for onchain apps?

DAU (Daily Active Users), WAU (Weekly Active Users), and MAU (Monthly Active Users) measure the number of unique wallets interacting with your app over different periods.

• DAU: Tracks daily engagement, useful for games or high-frequency dApps.

• WAU: Smooths out daily fluctuations, ideal for DeFi protocols.

• MAU: Shows long-term user retention and overall audience size.
  Choosing the right metric depends on your app’s intended use cycle.

What is a good DAU/MAU ratio in Web3?

The DAU/MAU ratio measures user stickiness, showing how many monthly users return daily. A "good" ratio varies by category, but a figure of 20% or higher generally indicates strong, consistent engagement. To improve your ratio, focus on enhancing the user experience, creating compelling features that encourage daily visits, and building a strong community around your project. Analyzing user behavior helps identify what drives regular interaction.