Day by day we can read news about the most interesting and fearfulness Web3 story. From terrible hacks to young millionaires, we are unable to evaluate correctly what is happening into a blockchain.
This short blog post wants to share the key metrics to track in a Web3 market and how to analyze them.
Core Metrics by Category
User Growth & Engagement
These key metrics provide an indication of the users interest of the project.
Unique Active Wallets (UAWs)
Unique Active Wallets (UAWs) refer to the distinct wallet addresses that engage in transactions or interactions with a particular protocol, decentralized application (dApp), or blockchain platform within a specific time frame (usually daily, weekly or monthly).
A high number of UAWs could indicates strong user engagement, interest, popularity, and a growing and healthy ecosystem.
For dApps, dappradar ranking is a good tool to track this metric. For protocols, Glassnode is one of the best in class tool for analytics.
Cost Per Wallet (CPW)
The Cost Per Wallet (CPW) calculate marketing spend per acquired user. It provide and indication of the growth, measuring the cost of website visitor that has a wallet installed on their browser, indicating quality traffic.
The CPW range is between $6-8 per wallet, for the top 25% better campaigns, and $4.68 to $44.79 for the weaker ones.
Retention Rate
Measure returning users over 30/90-day periods. Top DAOs achieve 35-45% 30-day retention through incentive alignment.
See also: Decentralized Application (dApp) explained
Financial Health Indicators
These key metrics analyse the financial status of the project.
Total Value Locked (TVL)
Total Value Locked (TVL) measures the total assets (in USD or crypto) deposited in decentralized finance (DeFi) protocols, including staking, lending, and liquidity pools. Indicates platform adoption, liquidity health, and user trust.
A healthy protocol could range from Millions to Billions (e.g., Ethereum L1 TVL: $50B+). Higher TVL suggests stronger liquidity and user confidence. Declining TVL may signal protocol risks or market downturns.
Reliable Trackers: DeFi Llama, CoinGecko, AAVE Dashboard.
We can evaluate the TVL-to-market cap ratio If >1 is healthy or over-valuated (undervalued if <1).
Average Revenue Per User (ARPU)
ARPU indicates the revenue generated per user over a period (e.g., monthly). Assesses monetization efficiency in subscription-based or fee-generating platforms. Its value range from $5–$50/month (varies by sector; e.g., NFT platforms: $10–$30).
Higher ARPU indicates better monetization. Compare against Customer Acquisition Cost (CAC) for sustainability (ideal LTV:CAC ≥3:1).
Reliable Trackers: Token Terminal, Dune Analytics.
LTV:CAC Ratio
This ratio compares Lifetime Value (LTV) to Customer Acquisition Cost (CAC). If it is <1:1 we have a loss per user.
A 3:1 ratio ensures sustainable growth. This is common in SaaS-like Web3 models (e.g., NFT marketplaces).
Reliable Trackers: Messari, Glassnode.
Other metrics related are:
LTV = ARPU × Customer Lifespan.
CAC = Total Marketing Spend / New Users.
On-Chain Activity Metrics
Following the key metrics for on-chain analytics.
Daily Transactions
Number of confirmed blockchain transactions per day. It measures network adoption and utility. Ethereum, for example, has ~1.2M transactions daily and Bitcoin ~300K/day
Rising transactions indicate growing usage; declines may suggest congestion or high fees.
Reliable Trackers: Blockchain.com, Etherscan.
Smart Contract Interactions
Count of transactions interacting with smart contracts (e.g., DeFi swaps, NFT mints). It gauges dApp activity and developer engagement.
High-activity dApps range from 10K–100K+/day (e.g., Uniswap: ~50K/day).
Increased interactions signal platform utility; drops may indicate user attrition.
Reliable Trackers: Etherscan, Solscan.
Cross-Chain Activity
Volume of assets bridged between blockchains (e.g., Ethereum to Polygon). It indicates interoperability adoption and multi-chain ecosystems. Major bridges oscillate $50M–$500M/day.
High activity reflects robust cross-chain demand; low activity may highlight fragmentation.
Reliable Trackers: DeFi Llama, Dune Analytics.
Community & Market Sentiment
Here we are going to describe the key metrics for community and sentiment analysis.
DAO Participation Rate
It indicate the percentage of token holders voting in governance proposals. It measures community engagement and decentralization.
A weak value is <10%, a strong value is 20–40%. Higher rates suggest active governance; low participation risks centralization.
Reliable Trackers: Snapshot.org, Tally.
Social Sentiment Score
Aggregated sentiment (positive/negative) from social media (e.g., Twitter, Reddit). It predicts market trends and investor behavior. Its value range from <40, for bearish market to >60 (scale 0–100) in a bullish market.
High positive sentiment often precedes price rallies; negativity may signal sell-offs.
Reliable Trackers: LunarCrush, Santiment.
NFT Holder Activity
Metrics like unique holders, average holdings, and trade volume. It assesses NFT collection liquidity and community strength. An high activity has daily volume >$1M and an healthy value is 1K–10K+ holders (e.g., Bored Apes: ~10K).
Rising holders and volume indicate demand; declines suggest fading interest.
Reliable Trackers: OpenSea, CryptoSlam.
Technical Market Indicators
Finally, we are going to explore the technical key metrics indicators.
90-Day Volatility Index
Measures price fluctuation over 90 days (standard deviation of returns). It evaluates asset risk and market stability.
In a volatile market its value is >80% (e.g., altcoins), instead in a stable: <50% (e.g., Bitcoin: ~28%).
Lower volatility attracts institutional investors; high volatility suits traders.
Reliable Trackers: CoinMetrics, TradingView.
RSI (Relative Strength Index)
Momentum oscillator (0–100) identifying overbought/oversold conditions. It is a short-term trading signal.
Its value oscillate from <30 for oversold to >70 for overbought
Interpretation: RSI >70 suggests potential correction; <30 indicates buying opportunity.
Reliable Trackers: TradingView, CoinGlass.
Exchange Netflow
Difference between inflows (deposits) and outflows (withdrawals) on exchanges. It predicts market sentiment (holding vs. selling).
Value Range from negative Netflow, more withdrawals (bullish) to positive Netflow: More deposits (bearish).
Sustained negative netflow signals long-term holding (e.g., Bitcoin ETFs).
Reliable Trackers: CryptoQuant, Glassnode.
Strategic Implementation Framework
Metric Correlation Matrix
| Primary Metric | Correlated Indicators | Optimization Insight |
|---|---|---|
| TVL Growth | Developer Activity (+82% YoY) | Invest in SDK/docs |
| Wallet Retention | DAO Participation (+15%) | Enhance governance |
| ARPU Increase | Transaction Frequency (2.1x) | Introduce premium tiers |
Monitoring Toolkit
- Glassnode: For on-chain transaction trends
- Arkham Oracle: AI-driven wallet clustering
- Dune Analytics: Custom metric dashboards
- Formo: Web3-specific cohort analysis
Key Metrics Tools and Resources
Grand View Research
- Relevance: Grand View Research is a leading provider of market intelligence, offering detailed reports on the growth trajectory of Web3.
- Key Insights: Their reports project a Compound Annual Growth Rate (CAGR) of 49.3% for Web3 from 2024 to 2030, highlighting exponential growth potential and key drivers like blockchain adoption, decentralized finance (DeFi), and tokenization.
- Use Case: Ideal for understanding macroeconomic trends and long-term market forecasts.
Consensys and YouGov Surveys
- Relevance: These surveys provide real-time data on user awareness and adoption of Web3 technologies.
- Key Insights: A 2025 survey revealed that 93% of respondents are aware of cryptocurrencies, with increased participation in NFTs, DeFi, staking services, and blockchain gaming.
- Use Case: Useful for gauging consumer sentiment and adoption rates across different Web3 applications.
Dune Analytics
- Relevance: Dune Analytics specializes in blockchain data visualization, offering customizable dashboards for tracking on-chain activity.
- Key Insights: Provides real-time data on metrics like daily transactions, gas fees, active addresses, and Total Value Locked (TVL) in DeFi protocols.
- Use Case: Essential for developers and analysts monitoring blockchain performance and user engagement.
The Business Research Company
- Relevance: This organization publishes in-depth global market reports that cover Web3’s growth projections and segmentation.
- Key Insights: Their reports predict the Web3 market will grow at a CAGR of 38.4%, driven by scalability solutions, IoT integration, token economies, and regulatory advancements.
- Use Case: Excellent for understanding the interplay between technological innovation and market expansion.
Coincub
- Relevance: Coincub focuses on data analytics specific to blockchain networks, smart contracts, and user behavior.
- Key Insights: They analyze transaction records, social media sentiment (e.g., Twitter/Reddit), and external factors like news or weather to interpret market dynamics.
- Use Case: Useful for identifying short-term trends and sentiment analysis.
Token2049 Conference Insights
- Relevance: Token2049 is a leading industry event where experts discuss emerging Web3 trends.
- Key Insights: Highlights include the tokenization of real-world assets (RWAs), sustainable blockchain solutions, and cross-chain interoperability as transformative trends for 2025.
- Use Case: Ideal for staying updated on cutting-edge innovations discussed by industry leaders.
See also: RWA Business Models
Gartner
- Relevance: Gartner provides strategic research reports on emerging technologies, including blockchain and Web3.
- Key Insights: Their analyses focus on enterprise adoption rates, technological maturity levels, and competitive landscapes in decentralized ecosystems.
- Use Case: Best suited for enterprises exploring Web3 integration strategies.
Conclusion
Prioritize metrics that intersect Web3’s unique value propositions:
- TVL-to-Developer Activity Ratio: >$1M TVL per active developer indicates sustainable growth
- Multi-Chain User Index: Users active on 2+ chains deliver 3x LTV
- Protocol Fee Velocity: 20%+ quarterly fee growth correlates with network effects
Innovative Insight: Emerging “Machine Metrics” now matter – track AI agent wallets (350k+ autonomous traders) executing 12% of DeFi volume. Their 0.8 second average hold time creates new volatility patterns requiring real-time analytics.
For reliable data on Web3 trends:
- Use comprehensive market reports from Grand View Research or The Business Research Company for long-term growth insights.
- Leverage real-time analytics platforms like Dune Analytics or Coincub to track on-chain activity.
- Stay informed through expert discussions at events like Token2049 or publications from Blaize Tech.
Combining these sources ensures a well-rounded understanding of Web3 trends, enabling accurate forecasting and strategic decision-making.
