Decentralized applications (Dapps), also known as onchain apps, are redefining digital experiences by offering enhanced privacy and self-custody. But as the Web3 ecosystem matures, tracking performance and understanding user behavior is no longer optional—it’s essential.

Dapp analytics—the process of collecting, processing, and interpreting onchain data—equips Web3 teams with actionable insights to optimize engagement, improve retention, and boost revenue for their onchain app.

In this guide, we’ll cover:

• What Dapps are and how they work

• The role and benefits of Dapp analytics

• Key metrics every Web3 team should track

• Five steps to simplify your analytics process

• Real-world examples of analytics in action

• The best tools for Dapp analytics

Key Takeaways 

• Dapp analytics is essential for tracking user behavior, measuring performance, and driving product-led growth in Web3.

• Core data types include user data, transaction data, smart contract data, and token metrics.

• Real-time dashboards and automation help teams act quickly and make smarter decisions using onchain insights.

• Tracking metrics like Revenue Per Wallet (RPW), churn rate, and campaign attribution enables better targeting, retention, and ROI.

• Unified analytics platforms like Formo simplify multi-chain data aggregation, making insights accessible to both technical and non-technical teams.

Dapp analytics is the analysis of real-time data from Dapps to understand user behavior in-app

What Is a Dapp?

A decentralized application (Dapp) is software that runs on a blockchain network, powered by smart contracts and accessed via a frontend interface. Unlike traditional apps, Dapps offer:

• Decentralization – Operates on smart contracts executed by distributed blockchain nodes.

• Transparency – All transactions are recorded and publicly verifiable.

• Security – Immutable data ensures tamper-proof records.

• Tokenization – Many Dapps issue tokens for utility, governance, and ownership.

Example of Dapp Architecture

Dapps power a wide range of industries—from DeFi platforms like Uniswap, to NFT marketplaces like OpenSea, and Web3 games like Axie Infinity.

Top 3 popular dapps: Uniswap, OpenSea, Axie Infinity

What Is Dapp Analytics?

Dapp analytics is the analysis of live product data generated by decentralized applications. This includes tracking wallet interactions, transaction flows, smart contract usage, and token movements—giving teams a complete picture of how users engage with their product.

Wallet Activity I Source: Formo

Benefits of Dapp Analytics:

• User Insights – Identify demographics, behaviors, and high-value users.

• Performance Monitoring – Track key growth and engagement metrics over time.

• Growth Opportunities – Spot user acquisition, activation, and retention gaps.

• Competitive Analysis – Compare key metrics against competitors and industry benchmarks.

• Fraud Detection – Catch suspicious bots and irregular farming activity before it causes harm.

Dapp Data Types

Here are 4 key Dapp data types for Web3 teams to analyze: 

1. User Data

Information related to user identities, wallet balances, transaction histories, and preferences is a gold mine of insights. User data helps you understand your audience and better meet your users’ needs. 

• Active Users: Number of daily, weekly, and monthly active users.

• Visitors vs Wallets: The number of visitors with crypto wallets

• Retention Rates: Percentage of users returning to your onchain app over time.

• Demographics: Countries, devices, operating systems, and languages.

2. DeFi Data

Transaction data provides a detailed picture of user activity, preferences, and adoption across DeFi. High transaction velocity and volume are clear signals of strong user engagement.

DeFi data provides a detailed picture of user intent and preferences

• Transaction Volume: The total number of transactions over a specific period.

• Frequency: How often users interact with a DeFi app.

• Total Value Locked (TVL): The amount of tokens locked in smart contracts.

• Top Apps and Tokens: DeFi positions and token balances of the user across multiple chains

3. Smart Contract Data

Smart contract events reveal what users do onchain. Smart contract data is critical for debugging, optimization, and understanding how users engage with the core features of onchain apps and protocols in web3.

• Interactions: Frequency of interactions with specific smart contracts.

• Event Logs: Detailed logs of onchain events triggered by smart contracts.

• Function Calls: Specific functions executed within a smart contract.

4. Token Metrics

Token metrics include key data points related to a cryptocurrency or token used in decentralized applications. These metrics indicate the financial health and user interest in the token.

• Token Holdings: Analysis of token ownership among users.

• Trading Volume: Activity in secondary markets involving the Dapp’s tokens.

• Price Movements: Tracking the value fluctuations of tokens.

5 Steps to Simplify Dapp Analytics

Although Web3 product analytics can seem complex, it doesn’t have to be. Here are 5 practical ways to streamline the Dapp analytics process:

1. Choose a Web3 Data Platform to Get Started

Data platforms such as Formo help Web3 teams capture and analyze onchain data. You can measure key metrics such as Customer Acquisition Costs (CAC), Product Engagement Score (PES), Average Revenue Per User (ARPU), and Customer Lifetime Value (CLV). Dapp analytics tools provide tracking dashboards and unified analytics that help simplify the process of analyzing Dapp data quickly with minimal technical expertise.

Overview analytic page I Source: Formo

2. Leverage Web3 APIs to Improve Data Coverage and Quality

Web3 APIs from providers such as Alchemy and QuickNode empower Web3 builders to query blockchain data easily. These APIs simplify the process of pulling complex datasets and integrating them into your analysis workflows, saving you time and resources.

3. Automate Workflows with Integrations

Automation is key to reducing the time and effort spent on collecting and reacting to new data. Integration services such as Zapier help automate key workflows, such as real-time notifications, ensuring that you act on data quickly and continuously.

Zapier connects apps and lets users create automated workflows to streamline tasks

4. Define Key Metrics

Not all data is created equal. Identify and prioritize key performance indicators (KPIs) that align with your product goals. For example, for user growth, focus on daily active users (DAU) and retention rates. For financial health, track TVL and revenue.

5. Turn Data into Insights with Charts and  Dashboards

Tableau, Grafana, or built-in dashboards from analytics platforms make it easier to present complex data in a simple, easy-to-understand format. Interactive graphs, charts, and heatmaps help identify trends, spot anomalies, and track performance at a glance.

Examples of Dapp Analytics in Action

Understanding what’s happening inside your dApp is about uncovering user behavior, optimizing conversions, and driving sustainable growth. Below are real-world examples of how Web3 teams use dApp analytics to make impact decisions.

1. User Retention Funnel

Objective: Analyze how users progress through the product journey and identify drop-off points.

Scenario: A DeFi protocol wants to measure how many users:

• Connect their wallet

• Make their first token swap

• Add liquidity

• Return to perform another action within 7 days

Key Metrics:

• Wallet connect → First swap → Liquidity added

• 1-day, 7-day, and 30-day retention

• Funnel conversion rates and drop-off

2. Campaign Attribution

Objective: Understand which marketing channels drive meaningful user actions such as minting or trading NFTs.

Scenario: An NFT marketplace runs Twitter and Discord campaigns with allowlist links.

Key Metrics:

• Clicks → Wallet connect → Mint → First trade

• Campaign UTM tracking mapped to wallet behavior

• LTV by source (Twitter vs Discord)

3. Revenue Per Wallet (RPW)

Objective: Track and improve how much revenue each wallet generates in a play-to-earn ecosystem.

Scenario: A Web3 game wants to compare RPW across different user acquisition sources (e.g., guilds, ads, referrals).

Key Metrics:

• RPW = Total revenue / # of active wallets

• RPW by channel and player cohort

• In-game purchases, token inflows/outflows

5. Churn Analysis

Objective: Understand why previously active contributors have stopped participating.

Scenario: A DAO tool notices a decline in proposal creation and wants to investigate.

Key Metrics:

• Last seen wallet activity

• Voting and proposal creation frequency

• Traits of churned users (e.g., delegates vs members)

6. User Segmentation

Objective: Group users into segments based on onchain behavior and offchain attributes.

Scenario: A dApp team wants to identify:

• Power users (e.g., whales or repeat users)

• New or dormant wallets

• Survey responses from high-value cohorts

Key Metrics:

• Frequency and volume of transactions

• Token/NFT holdings

• Form responses (e.g., demographics, motivations)

List of Dapp Analytics Tools

Here’s a list of tools tailored (or adaptable) for product teams looking to track engagement, optimize funnels, and improve retention in Web3.

1. Formo

Formo is the data platform for onchain apps. Designed specifically for onchain product and marketing teams with key features such as wallet profiles, Web3 growth metrics, onchain attribution, and audience insights. Ideal for data-driven product managers, growth teams, and founders looking to use data to drive impact and accelerate their growth loop.

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. Get started for free.

2. PostHog

Originally built for Web2, PostHog can be extended with Web3 event tracking through custom data pipelines. Key features of Posthog are funnels, session recordings, feature flags, open-source & self-hosted

3. Mixpanel

Mixpanel is a web2 product analytics tool that can track dApp interactions when connected to onchain or wallet events via middleware. Key features of Mixpanel are behavioral cohorting, A/B testing, and integration with data pipelines.

Dapp Analytics for Onchain Builders

In Web3, data is your growth engine. Dapp analytics gives founders, PMs, and growth teams the clarity they need to optimize user journeys, scale adoption, and drive product-led growth.

Formo unifies fragmented Web2 and Web3 data, providing a complete view of your users and their onchain interactions—so you can focus on building exceptional Web3 experiences while we handle the heavy lifting in data engineering and analytics.

Further sources: 

• 8 Web3 Product Analytics Use Cases to Supercharge Your Growth

• Mastering Web3 Marketing Attribution Analytics: A Complete Guide

• Web3 Startup Analytics: How data drives startup success

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 Dapp analytics different from traditional Web2 analytics?
Traditional Web2 analytics relies on centralized tracking methods such as cookies, user IDs, and server logs. Dapp analytics, on the other hand, focuses on onchain events tied to wallet addresses and smart contract interactions. This provides verifiable, transparent, and tamper-proof data, allowing teams to measure engagement, transactions, and token flows without relying on third-party trackers.

2. What’s the biggest challenge in analyzing Dapp data?
The primary challenge is data fragmentation. Information is often spread across multiple blockchains, wallet addresses, and smart contracts, with no universal identifiers. Without the right tools, consolidating this data for a complete view of user behavior can be time-consuming and technically complex. Platforms like Formo solve this by aggregating multi-chain data into unified wallet profiles.

3. Can non-technical teams use Dapp analytics tools?
Yes. Many modern Web3 analytics platforms—including Formo—are designed for product managers, marketers, and growth teams without deep blockchain expertise. They offer no-code dashboards, prebuilt metrics like Revenue Per Wallet (RPW) and retention rates, and integrations with marketing tools so teams can make data-driven decisions without writing custom queries.

4. How do you measure the success of a Dapp using analytics?
The right metrics depend on your product goals, but common success indicators include:

• Active Users – Daily (DAU), weekly (WAU), and monthly (MAU) active wallets.

• Retention Rate – Percentage of users returning within a given period.

• Total Value Locked (TVL) – Assets locked in the Dapp’s smart contracts.

• Revenue Per Wallet (RPW) – Average revenue generated per active wallet.

• Funnel Conversions – The rate at which users complete critical actions like swaps, mints, or trades.
  
  

5. Why should Web3 teams care about wallet segmentation?Wallet segmentation helps you group users based on behavior, holdings, and transaction patterns—such as whales, power users, new wallets, or dormant accounts. This allows for personalized engagement strategies, better churn prevention, and higher ROI marketing campaigns by focusing resources on the most valuable cohorts.