Web3 user analytics provides a comprehensive understanding of user behavior, offering key insights into marketing effectiveness, user journeys, and product performance. By leveraging Web3 analytics, teams can make data-driven decisions, identify areas for improvement, and optimize their marketing strategies. Let’s dive into the specifics!
Key Takeaways
Web3 user analytics = onchain + offchain insights to track wallet behavior, campaign success, and product performance.
Segmentation helps you group users by wallet age, token activity, region, or engagement level.
Web3 funnel analytics is critical to track wallet drop-offs and conversion rates across dApp flows.
Unified platforms like Formo help teams collect, process, and act on hybrid data fast.
Web3 user analytics refers to collecting, analyzing, and interpreting data about users in decentralized ecosystems
What is Web3 User Analytics?
Web3 user analytics refers to collecting, analyzing, and interpreting data about users in decentralized ecosystems such as blockchain networks, decentralized applications (dApps), and Web3 platforms. Unlike traditional analytics, Web3 user analytics focuses on both:
Onchain data: Transactions, wallet interactions, and token activities.
Offchain data: Website traffic, social media engagement, and community interactions.
Web3 users are identified by wallet addresses and interact across various spaces, such as:
Social media platforms: Popular ones include Twitter, Telegram, Discord, and Farcaster.
Community hubs: Places where Web3 projects gather and reward users.
Blockchain ecosystems: Transactions, smart contracts, and DeFi protocols.
Engaging with potential users through surveys and collecting product usage data can provide actionable insights into your users’ needs, expectations, and pain points. Formo simplifies this process by offering user-friendly templates and analytics. Capturing qualitative and quantitative data allows for a broader understanding of user preferences and experience, enabling projects to refine their value proposition.
Why does Web3 user analytics matter?
The goal of Web3 user analytics is to create a comprehensive and accurate understanding of your app’s users. These insights give you a better understanding of your audience and make targeted product improvements. Web3 analytics help you target the right users with marketing campaigns, increase revenue, and enhance the overall customer experience (CX).
Who Uses Web3 User Analytics?
Web3 user analytics helps teams understand onchain behavior, optimize product performance, and grow communities. Here's who uses it and why it matters for teams:
Web3 Product Teams
Builders, PMs, and designers use Web3 analytics to understand how wallets interact with dApps, smart contracts, and protocols. They track user flows, identify drop-offs, and iterate on features with data, not assumptions.
Key questions they answer:
How many wallets completed a full transaction flow?
What’s the retention rate of new wallets?
Which contract interactions are underused?
Web3 Marketing Teams
Marketers and growth leads leverage analytics to segment wallet audiences, track campaign performance, and effectively run targeted initiatives.
Key questions they answer:
Which wallets came from this campaign or referral link?
What kind of wallets are engaging most (new vs. OG)?
Which holders interacted with our app after the incentive campaigns?
Growth & DAO Ops
Growth hackers and DAO operators use wallet analytics to track engagement, measure the success of incentives, and identify power users or advocates.
Key questions they answer:
Who are our top contributors or superfans?
What’s the cost per active wallet?
Which segments are primed for governance participation?
Founders & Investors
Leadership teams and Web3 investors use macro-level analytics to evaluate growth, monitor community health, and benchmark performance across ecosystems.
Key questions they answer:
What’s our active wallet rate over time?
Are wallet interactions growing week-over-week?
How do we compare to other protocols?
Developer Relations & Ecosystem Leads
Ecosystem builders analyze wallet behavior to understand how projects in their ecosystem perform and how developers drive usage through integrations.
Key questions they answer:
Which projects drive the most wallet activity?
How many devs are generating onchain interactions?
What does cross-dapp usage look like?
6 Types of Web3 User Analytics
Here are six key types of user analytics transforming how teams connect with their audiences:
6 key types of web3 user analytics
1. Web3 user acquisition
Tracks how users find and interact with your brand, including wallet activity, social engagement, and governance participation. For example, monitoring the number of users visiting your website and participating in your communities provides valuable insights for optimizing marketing strategies and enhancing the effectiveness of acquisition campaigns.
Web3 product analytic interface | Formo.so
2. Web3 user segmentation
Segment users based on characteristics such as country, chain, and more. You can segment users by their wallet activity (age, net worth, transactions) along with non-personally identifiable information (non-PII) such as region and device type. Customizing your messaging and product offerings for these distinct groups can boost engagement and conversion.
Web3 product analytic interface | Formo.so
3. Web3 user engagement
Engagement analytics measure how your users interact with your brand across various touchpoints such as website visits, social media interactions, and growth campaigns. Web3 teams measure user engagement with decentralized application (dApp) activity, non-fungible tokens (NFTs) volumes, and metrics on social platforms. For example, metrics could include time spent on a dApp, the number of sessions, or clicks on specific features.
Web3 product analytic interface | Formo.so
4. Web3 user satisfaction
Satisfaction analytics evaluate how happy users are with your products, services, and overall brand experience. Common methods include Web3 surveys, feedback forms, and review analyses.
5. Web3 user retention
Retention analytics aims to understand why users choose your brand and what factors contribute to loyalty. For example, it examines repeat purchase rates and user lifecycle behaviors.
6. Web3 customer lifetime value
Customer Lifetime Value (CLV) analytics estimate the total value a customer will contribute to your brand throughout their relationship with you. This metric helps identify the most valuable users and optimize resource allocation accordingly. It tracks financial metrics such as token purchases, transaction fees, and positions in decentralized finance (DeFi) protocols.
Stages of Web3 user analytics
Web3 analytics transforms raw data into actionable insights through three stages:
3 Stages of Web3 user analytics
1. Collect
First, brands must capture user data from various sources, such as marketing tools, CRM systems, or third-party sources. Such data may include the following:
Onchain sources: Wallet transactions, staking activities, and token transfers using tools such as Etherscan and The Graph.
Offchain sources: Website traffic, email campaigns, and social media analytics through web2 analytics platforms such as Google Analytics or PostHog.
Hybrid platforms: Formo unifies onchain and offchain data for a comprehensive view of your dapp, helping you understand your target users and their behavior.
2. Transform
Next, Web3 teams process and transform the raw data to work in a user analytics tool because raw data can be hard to decipher and produce inaccurate results. A customer data platform (CDP) can help projects store and organize their data in a central location.
3. Analyze
A web3 user data analytics tool helps you make sense of your data. They help you extract insights and display trends as charts and graphs. Web3 teams can derive insights about their dapp’s engagement and user activity metrics and use them to make informed product decisions. Additionally, it’s important to track key performance indicators (KPIs) of Web3 products such as unit economics, CAC, LTV, and ARPU.
What’s a Good Example of Web3 User Analytics?
Let’s take a decentralized NFT marketplace as our example to see how Web3 user analytics works in practice.
Tracking Wallet Activity
When a wallet visits a specific NFT collection page, the platform logs an onchain or offchain event, such as "Wallet views collection." This event includes metadata (event attributes), such as:
Collection address
Category or theme (e.g., PFP, art, gaming)
Referral source (e.g., Farcaster, Twitter)
If the wallet goes on to view a specific NFT or initiates a transaction (e.g., starts a purchase), new events are triggered:
"Wallet views NFT" with attributes like token ID, price, rarity score
"Wallet signs transaction" or "Wallet completes purchase", with metadata like gas used, payment method, and time to complete
If the user cancels or fails to confirm the transaction, that’s logged too—"Wallet abandons transaction." All of these interactions form a stream of onchain and offchain events tied to that wallet.
Applying Web3 Funnel Analysis
A growth marketer or product manager can build a funnel to analyze wallet behavior for a specific collection:
Step 1: "Wallet views collection"
Step 2: "Wallet views NFT"
Step 3: "Wallet completes purchase" (within 15 minutes)
Suppose 100,000 wallets view the collection, 40,000 go on to view an NFT, and only 5,000 complete a purchase. That’s a 5% conversion rate from browse to buy.
They can then ask:
Do wallet types (e.g., OG vs. new wallets) convert differently?
Are certain collections or NFT traits performing better?
Does wallet activity vary by time of day or entry channel?
By revealing exactly where wallets drop off in the user journey, Web3 funnel analysis enables teams to make data-driven decisions. Product and marketing teams can use user behavior insights to optimize UI/UX, streamline transaction flows, and eliminate friction, ultimately improving conversion rates and user retention.
Web3 user analytics streamlines product development, giving you a distinct competitive advantage in Web3. By analyzing user data, you can identify trends, uncover obstacles, and make data-driven decisions to drive product-led growth.
Formo helps product and marketing teams create engaging surveys, track engagement, and measure KPIs by integrating onchain and offchain data into a single platform. Actionable product insights enable you to predict user behavior, acquire new users, and boost onchain activity. By addressing issues before they arise, you can improve user loyalty and reduce churn.
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Additional FAQs
1. How is wallet privacy maintained in Web3 user analytics?
Wallet addresses are pseudonymous. Most analytics platforms avoid personal identifiers and rely on aggregated or anonymized data to ensure privacy.
2. How can I use analytics to reduce wallet churn?
By monitoring usage drop-offs, inactivity periods, or decreased transaction volumes, you can trigger re-engagement strategies like incentives or personalized outreach.
3. How do I measure campaign ROI in Web3?
Use referral links or event tags to attribute wallet behavior to specific campaigns, then analyze outcomes like acquisition cost, conversion, and retention by wallet segment.
4. Can Web3 analytics help detect fraudulent or suspicious wallet activity?
Yes, by analyzing unusual transaction patterns or wallet behaviors, analytics tools can flag potential fraud or bots, helping protect your platform and users.
5. What role does social media data play in Web3 user analytics?
Social media insights complement onchain data by revealing user sentiment, community engagement, and campaign reach, helping you understand users beyond transactions.
