Web3 user analytics provides a comprehensive view of user behavior, offering actionable insights into marketing performance, user journeys, and product metrics. By leveraging Web3 analytics, teams can make data-driven decisions that move the needle from growth to retention.
Key Takeaways
Web3 user analytics combines onchain and offchain data to track user behaviour, campaign performance, and feature adoption.
Segmentation allows grouping users by wallet properties such as age, transaction frequency, region, net worth, and others.
Funnel analytics captures the full user journey, helping teams track wallet drop-offs and conversion rates across the app.
Data platforms such as Formo streamline the collection, processing, and actioning of data for onchain apps.
Web3 user analytics refers to collecting, processing, and analyzing data about users in blockchain apps and protocols.
What is Web3 User Analytics?
Web3 user analytics involves collecting, analyzing, and interpreting user data across decentralized ecosystems, including blockchain networks, decentralized applications (dApps), and Web3 platforms. Unlike traditional analytics, Web3 analytics incorporates:
Onchain data: Transactions, wallet interactions, token activity, staking, and DeFi engagement.
Offchain data: Website traffic, social media engagement, and community interactions.
Web3 users are represented by wallet addresses and interact across multiple spaces:
Social media platforms: Twitter, Telegram, Discord, Farcaster.
Community hubs: Project forums, DAO communities, and incentive programs.
Blockchain ecosystems: Smart contracts, NFT marketplaces, and DeFi protocols.
Engaging users through surveys and product usage tracking provides insights into their needs, expectations, and pain points. Tools like Formo simplify this process with user-friendly templates and analytics, capturing both qualitative and quantitative data to refine your product’s value proposition.
Why does Web3 user analytics matter?
The primary goal of Web3 analytics is to provide a complete understanding of your app’s users. These insights allow you to:
Target the right users with campaigns.
Increase revenue and engagement.
Enhance the user experience.
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
Product managers, designers, and developers leverage analytics to track wallet interactions with dApps and smart contracts. They identify drop-offs and iterate on features using data instead of assumptions.
Key questions:
How many wallets completed a full onboarding flow?
What’s the retention rate of new vs old wallets?
Which product features are being adopted and which are being ignored?
Web3 Marketing Teams
Marketers use analytics to segment wallet audiences, track campaigns, and run targeted initiatives.
Key questions:
Which wallets came from specific campaigns or referral links?
Which wallets are most engaged (new vs. OG, across different cohorts)?
Which holders interacted after the incentive campaigns end?
Growth teams
Growth teams track wallet engagement, measure the impact of incentives on long-term growth, and identify power users or advocates to find more users like them.
Key questions:
Who are our top contributors or superfans? What are they like?
What’s the cost per active wallet? Revenue per wallet?
Which user segments are primed for activation and retention?
Founders
Data-driven teams use web3 user analytics to monitor growth, assess user quality, and benchmark performance against competitors.
Key questions:
What is the percentage of active wallets over time?
Are wallet interactions increasing week-over-week?
How do we compare to other protocols?
Developer Relations & Ecosystem Leads
Ecosystem builders analyze wallet behavior to evaluate project performance and developer engagement.
Key questions:
Which projects drive the most wallet activity?
Which integrations generate the most onchain interactions or volume?
What does cross-dapp usage look like?
6 Types of Web3 User Analytics
Here are six key types of user analytics transforming how onchain teams connect with their audiences:
1. Web3 User Acquisition Analytics
Tracks how wallets discover and interact with your brand, including website visits, social engagement, and governance participation. This helps optimize marketing strategies and acquisition campaigns.
Web3 product analytics on Formo
2. Web3 User Segmentation Analytics
Groups users by wallet activity (age, transactions, net worth) and demographic attributes (region, device). Precise segmentation enables personalized messaging and targeted product offerings that drive user activation.
Web3 user segmentation analytics on Formo
3. Web3 User Engagement Analytics
Engagement analytics measure how your users interact with your brand across various touchpoints such as website visits, social media interactions, and growth campaigns. Data-driven onchain teams measure user engagement on social platforms, decentralized application (dApp) activity, and onchain transaction volumes.
Other key user engagement metrics include time spent on a dApp, the number of sessions, or activity on specific features.
Web3 user engagement analytics on Formo
4. Web3 User Satisfaction Analytics
User Satisfaction analytics measure user happiness or satisfaction scores (such as NPS) with Web3 surveys, feedback forms, and UX reviews. Understand how well your product is serving users both quantitive data and qualitative feedback.
5. Web3 User Retention Analytics
Retention analytics analyzes why users return and what drives loyalty, including repeat transactions and other user lifecycle behaviors. Identifying drop-off points in key funnels can have a big impact on user retention.
6. Web3 Customer Lifetime Value Analytics
Customer Lifetime Value (CLV) analytics estimates the total value a wallet contributes over time to your app or protocol, including token purchases, transaction fees, and DeFi positions. Identifying who your top users are helps optimize incentive and marketing spending.
It tracks key metrics including token purchases, transaction fees paid, and open 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, capture data from your key touchpoints:
Onchain: Wallet activity and onchain transactions (Etherscan).
Offchain: Website traffic, in-app behaviour, marketing channels, growth campaigns (Google Analytics or PostHog).
Tip: Use data platforms like Formo to unify onchain and offchain data in less time instead of manually cobbling together fragmented tools.
2. Transform
Next, Web3 teams process and transform the raw data into something useful. Raw data can be hard to decipher and produce inaccurate results. Onchain data especially needs further processing to give it context and meaning.
A customer data platform (CDP) can help projects store and organize their data in a central location. Use CDPs to store, organize, and standardize data for accurate insights across teams.
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.
Use product analytics and business intelligence tools to extract insights, visualize trends, and track your KPIs.
Use Cases of Web3 User Analytics
Tracking Wallet Activity
Capturing the full user journey across key touchpoints helps you identify drop-off and activation points:
Step 1: User views a specific page on the website → logs metadata (vault address, category, referral source).
Step 2: User connects their wallet → links offchain and onchain data.
Step 3: User performs in-app actions and onchain transactions → logs key onboarding and conversion events.
If the wallet goes on to view a specific page or initiates a transaction (e.g., starts a purchase), events are triggered at each touchpoint.
If the user cancels or fails to confirm the transaction, that’s logged too—"Wallet rejects transaction." All of these interactions form a stream of onchain and offchain events tied to that wallet's journey on your onchain app.
Applying Web3 Funnel Analysis
A growth marketer or product manager can build a funnel to analyze wallet behavior for their app:
Example funnel for 100,000 wallets:
100,000 view the website
40,000 connect their wallet
5,000 completes a transaction → 5% conversion rate
Insights from funnel analytics help you answer:
Do OG wallets convert better than new wallets?
Which wallet or demographic properties drive engagement?
How does activity vary by time, channel, and campaign?
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.
Data Platform for Onchain Apps
Formo is the data platform for onchain apps.
Formo makes analytics easy. Get the best of web, product, and onchain analytics on one versatile platform. Accelerate your growth loop with unified analytics and attribution.
Our data platform enables teams to collect, analyze, and act on both onchain and offchain data with a suite of crypto-native tools:
Get started with data-driven user analytics to accelerate your growth onchain.
Follow us on LinkedIn and Twitter, and join our community to see how Web3 leaders use Formo to drive growth in less time.
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Additional FAQs
1. How is user privacy handled in Web3 user analytics?
Wallet addresses in Web3 are pseudonymous, meaning they do not directly reveal personal information. Most analytics platforms prioritize privacy by avoiding the use of personal identifiers and relying on aggregated or anonymized data. This ensures compliance with data protection best practices while still providing actionable insights into user behavior.
2. How can I use analytics to reduce wallet churn?
Web3 analytics can help identify patterns of disengagement, such as transaction inactivity, reduced token activity, or periods of low interaction. By tracking these metrics, you can implement targeted re-engagement strategies, including personalized messaging, incentive campaigns, or exclusive rewards, to retain users and improve wallet loyalty over time.
3. How do I measure campaign ROI in Web3?
To measure ROI for Web3 campaigns, use referral links, event tags, or unique wallet identifiers to track wallet actions across campaigns. Analyze metrics such as acquisition cost per wallet, conversion rates, engagement, and retention by wallet segment. This approach provides a clear understanding of which campaigns generate value and informs future marketing strategies.
4. Can Web3 analytics help detect fraudulent or suspicious wallet activity?
Yes. By analyzing transaction patterns, wallet interactions, and unusual behaviors, Web3 analytics platforms can identify potential fraud, bot activity, or Sybil attacks. Early detection allows teams to protect their platforms, maintain ecosystem integrity, and safeguard both users and assets.
5. What role does social media data play in Web3 user analytics?
Social media insights complement onchain data by offering a broader view of user behavior and sentiment. Tracking engagement, discussions, and campaign reach on platforms like Twitter, Discord, and Telegram helps teams understand community involvement, user preferences, and overall perception of the project—beyond mere transaction activity.
