Web3 Behavioral Analytics: How to Track and Analyze
Web3 Behavioral Analytics: How to Track and Analyze

Web3 Behavioral Analytics: How to Track and Analyze

Web3 Behavioral Analytics: How to Track and Analyze

Web3 Behavioral Analytics: How to Track and Analyze

Guides

3 Jun 2025

Web3 Behavioral Analytics provides verified real-time insights into user actions onchain, empowering teams to understand Web3 user needs, enhance user experiences, and drive growth. Unlike Web2 analytics, which rely on cookies and session tracking, Web3 analytics integrates onchain and offchain data for a comprehensive view of the user journey. By analyzing user interactions on dApps and protocols, Web3 teams can make data-driven product decisions and improve user retention. 

This guide explores key metrics, essential tools, and effective strategies for analyzing Web3 user behavior.

Key Takeaways

  • Web3 behavioral analytics reveals real-time user behavior on dApps through both onchain and offchain data.

  • Behavioral data helps identify drop-off points, friction areas, and engagement trends.

  • Combining quantitative methods (e.g., funnel analysis) with qualitative tools (e.g., surveys) yields deeper insights.

  • Teams use these insights to optimize UX, improve retention, justify decisions, and drive product growth.

Web3 Behavioral Analytics helps product and marketing team tracks user interactions on dApps, wallets, and blockchains

Web3 Behavioral Analytics helps product and marketing team tracks user interactions on dApps, wallets, and blockchains

What is Web3 Behavioral Analytics?

Web3 Behavioral Analytics captures and analyzes user activity across dApps, blockchain networks, and Web3 platforms to uncover user intentions, pain points, and drop-off moments. With precise behavioral data, builders can enhance product experiences, optimize conversions, and drive sustainable growth.

Web3 analytics answer key questions:

  • What’s happening? (e.g., Which wallets interact with your dApp?)

  • Why is it happening? (e.g., Why do users abandon transactions or fail to claim rewards?)

  • How can you improve? (e.g., Optimizing UX, adjusting gas fees, enhancing onboarding)

In Web2, behavioral analytics focuses on tracking clicks, pageviews, scrolls, and conversions using tools like Google Analytics or Mixpanel. In Web3, user behavior is distributed across wallets, smart contracts, and onchain events, making tracking much more complex. By combining onchain data (transactions, wallet activity, contract interactions) with offchain behavior (clicks, scrolls, engagement), Web3 analytics provides deeper, actionable insights to help growth.

Challenges in Web3 Behavioral Analytics

Behavioral analytics make decision-making easier, but Web3 has unique complexities:

1. Traditional Tools Aren’t Built for Web3

Most analytics platforms are designed for Web2, relying on cookies and session tracking, which makes them ineffective for Web3. Traditional tools cannot track wallet interactions, smart contract calls, or onchain events, limiting their ability to capture Web3 user activity. Setting up Web3 analytics tools requires advanced technical expertise, posing a challenge for small teams and startups without dedicated data engineers.

2. No Standardized Playbook for Web3 User Journeys

Web3 interactions are fragmented, raising fundamental questions:

  • How do you segment users when they interact anonymously through wallets?

  • How do you track conversions when users switch between multiple wallets and chains?

  • How do you measure engagement and retention in Web3 communities?

3. Extracting Actionable Insights

Even with analytics tools in place, turning raw data into meaningful insights remains difficult. Identifying which events or metrics to track, such as wallet connections, smart contract interactions, or token swaps? Interpreting onchain behavior can also be complex; for example, are users abandoning transactions due to high gas fees or poor UI design? Bridging onchain and offchain data is critical for a holistic view of user behavior, but integrating these data sources can be technically demanding.

Top 4 Benefits of Web3 Behavioral Analytics

Despite its challenges, Web3 behavioral analytics is needed for driving community growth, retention, and engagement. Here’s how it provides actionable insights:

1. Identify Drop-off Points in User Journeys

Understanding where users abandon key actions such as wallet connections, transactions, or staking is critical for improving conversions. By tracking wallet interactions and the Web3 funnel over time, teams can identify drop-off points and find how to improve retention.

Formo’s Funnel Analytics I Web3 product analytics

Formo’s Funnel Analytics I Web3 product analytics

Example: If a high percentage of users abandon your dapp before making a transaction, it could indicate high gas fees, an unclear UI, or a lack of trust in your brand.

2. Understand Community Engagement Patterns

You need to analyze how users interact with your dapps to foster engagement. UTM analytics can track the visibility on your social media and community, such as  X, Discord, and Telegram, while onchain activity reveals the interactions on your product to keep them engaged.

Engagement turns passive Web3 users into active Web3 community members, fueling growth and sustainability

Engagement turns passive Web3 users into active Web3 community members, fueling growth and sustainability

Example: If community participation is low, the issue might be a lack of incentives, poor communication, or unclear instructions.

3. Collect Real-Time Feedback

Collecting direct user insights on tokenomics and product usage helps boost marketing strategies. Web3 behavioral analytics provides verifiable, onchain feedback to help you understand and enhance decision-making. Using both quantitative insights from the Web3 Analytics tool and qualitative insights from community calls, AMAs, and Discord discussions further enriches the analysis.

Example: A DAO can validate proposed tokenomics changes by running an onchain polling campaign and analyzing user interactions with this campaign.

4. Justify Growth Decisions

Data-driven decisions are important for securing funding, optimizing token distribution, and developing new features. Onchain analytics provide insights into transaction trends, wallet activity, and product adoption. By aligning behavioral data with growth strategies, Web3 teams can demonstrate traction and validate key product decisions.

Formo’s Activity Feed I Web3 product analytics

Formo’s Activity Feed I Web3 product analytics

Example: A Web3 gaming project can prove its momentum to investors by showcasing wallet retention, NFT trades, and play-to-earn participation.

Web3 Behavior Analytics Methodologies

Different analytics methods help you understand user behavior, each offering unique insights. Here are some core approaches to consider:

8 Web3 Behavior Analytics Methodologies

8 Web3 Behavior Analytics Methodologies

Web3 Funnel Analysis

Web3 funnel analysis tracks how users move through a series of steps, helping you to identify where they drop off and where they convert. This method is especially useful for understanding the stages of complex Web3 transactions, such as token swaps or NFT purchases.

Web3 Path Analysis

Path analysis shows the routes users take through your product. It’s valuable for discovering unexpected user behaviors or inefficient flows, helping to optimize user navigation and interaction paths.

Web3 User Segmentation

Segment your users based on their token balances, country, device, or product usage. Web3 behavior analytics allows you to tailor personalized experiences and target specific needs. With tools like Formo, you can easily segment users to optimize marketing and product features.

Web3 A/B Testing

A/B testing compares different versions of a feature or experience to see which performs better in terms of engagement and conversions. For example, test different wallet connection processes or NFT minting pages to see which variant leads to higher user engagement.

Web3 Session Replays

Session replays let you watch real user interactions to identify pain points or usability issues. This qualitative method helps you observe how users experience your Web3 platform.

Web3 Surveys

Surveys capture qualitative insights directly from users, helping explain why they behave a certain way. Use surveys to better understand user motivations and pain points, especially in the Web3 ecosystem, where user needs can vary widely.

Combining Methods for Comprehensive Insights

The right behavioral analytics method depends on the type of insights you need. Quantitative methods like funnel and path analysis help you understand user behavior, while qualitative methods like surveys and session replays provide deeper insights into user motivations. Combining these methods strategically allows you to achieve specific business outcomes, such as improving retention, increasing feature adoption, and boosting conversion rates.

How Web3 Teams Use Behavioral Analytics

Behavioral analytics empowers Web3 teams to refine user experiences, optimize engagement, and drive growth.

Web3 behavioral analytics helps teams improve UX, boost engagement, and fuel growth

Web3 behavioral analytics helps teams improve UX, boost engagement, and fuel growth

  • Product teams: analyze drop-off points during feature adoption to enhance onboarding and feature usage. If users frequently click on a feature but don’t use it, improvements such as UI adjustments, clearer tooltips, or interactive tutorials can boost engagement.

  • Data teams: leverage behavioral insights to predict user actions and identify churn risks. For example, if many users bypass onboarding, they may be more likely to disengage. Recognizing these patterns early allows teams to intervene with personalized guidance or incentives.

  • Marketing teams: identify which features and dApp interactions drive the highest conversions. By understanding user engagement trends, they can personalize campaigns, target high-value users, and refine messaging to improve adoption rates.

  • Customer support teams can proactively address user struggles by analyzing session replays and behavioral data. By identifying common friction points, they can create more effective guides, FAQs, and product improvements, reducing the need for reactive support.

6 Web3 Behavioral Analytics Examples

To truly unlock growth in Web3, it's critical to understand how and why users behave the way they do. Below are real-world examples of how Web3 teams apply behavioral analytics to make better product, marketing, and community decisions.

1. Drop-off Analysis

Identify the exact points where users abandon critical actions, like connecting a wallet or completing a token swap.
Example: 45% of users connect their wallet but don’t proceed to swap tokens. By analyzing this, the team discovers that a confusing UI and unexpected gas fees cause friction. They redesign the interface and add tooltips to increase conversion.

2. Community Engagement Tracking

Track wallet addresses that engage across your Web3 community touchpoints like Discord, X (Twitter), and Telegram, and correlate that with onchain activity.
Example: Users who click UTM links from Discord and later mint an NFT are tagged as “power users.” This insight helps the marketing team double down on Discord campaigns.

3. Feature Adoption & Usage

Monitor how users interact with new features such as staking, governance, or NFT minting, and whether they return.
Example: A new staking feature is launched. Behavioral analytics shows that while 70% of users view the staking page, only 15% stake. User replays reveal confusion about lock-in periods, prompting the team to update FAQs and UI copy.

4. A/B Testing Wallet Connect UX

Test different wallet connection flows to find the one that drives the most completions and leads to deeper engagement.
Example: Version A uses a modal pop-up, while Version B integrates wallet connect into the homepage. Analytics shows Version B has a 30% higher connection rate and better user retention.

5. NFT Purchase Funnel

Track every stage from wallet connect → browsing NFTs → minting → using in-game.
Example: 80% of players browse the NFT page, but only 10% mint. Session replays show that players don’t understand the in-game utility of the NFT. Solution: add an in-game preview and tutorial video before the mint button.

6. Retention and Cohort Analysis

Segment users by wallet activity and monitor who returns after 1, 7, or 30 days.
Example: Players who complete onboarding quests within the first session are 2x more likely to return after a week. The product team uses this insight to prioritize gamified onboarding.

Although behavioral analytics may seem complex, the right tools and strategies simplify the process. A combination of A/B testing, user funnels, and segmentation provides actionable insights that help Web3 projects enhance community engagement, boost conversions, and improve user retention.

Formo streamlines this process with no-code dashboards, real-time user data, and web3-native analytics. By unifying onchain behavioral insights with offchain engagement data, Formo enables Web3 teams to better understand, retain, and effortlessly grow onchain.

Further sources: 

Follow us on LinkedIn and Twitter, and join our community to learn how Formo turbocharges growth for leading teams across web3!

Additional FAQs

1. How is Web3 behavioral analytics different from wallet analytics?
Wallet analytics focuses on wallet activity (like balances and transactions), while behavioral analytics digs into how users interact with products (paths taken, actions abandoned, and user motivation).

2. Can I run behavioral analytics without a technical team?
Yes, with no-code tools like Formo, even non-technical teams can set up dashboards, segment users, and analyze user behavior without writing code.

3. What kind of data can I use to create user personas in Web3?
Combine onchain behavior (token holdings, contract interactions) with offchain actions (survey responses, community engagement) to build richer, actionable personas.

4. How does behavioral analytics help improve Web3 onboarding?
By tracking where users drop off during the onboarding flow, teams can optimize wallet connection steps, reduce friction, and improve feature clarity.

5. Is Web3 behavioral data private or public?
Onchain data is public by nature, but behavioral analytics respects pseudonymity. Tools like Formo help analyze actions without exposing personal identities, preserving user privacy while still enabling deep insight.

Table of contents

Back to Blog

Share this post on

Back to Blog

Share this post on