Selecting Web3 Analytics Tools

In Web3, analytics tools are critical to understanding, user behavior, liquidity distribution, and market trends. Choosing the right analytics tool can have a significant impact on the decision‑making process and the success of a startup.

Understanding Web3 Analytics

Web3 analytics refers to the methods and tools used to gather, measure, and analyze data in decentralized ecosystems such as blockchains, decentralized applications (dApps), and smart contracts. Unlike traditional (Web2) analytics that focus on centralized platforms (like websites or apps), Web3 analytics emphasizes transparency, immutability, and user ownership of data.

Why It Matters

Informed Decision Making. Helps builders, investors, and users understand usage patterns and make data‑driven choices.

Protocol Governance. In DAOs, analytics can guide voting and proposal outcomes.

Security Monitoring. Real‑time data can alert protocols to exploit attempts or abnormal behavior.

Adoption Tracking. Insights into user growth, retention, and engagement help grow dApps and ecosystems.

Use Cases

User Behavior Tracking. Analyzing how wallets interact with dApps or DeFi protocols.

Protocol Performance. Monitoring smart contract usage, TVL (total value locked), or transaction frequency.

Token Metrics. Tracking token supply, liquidity, transfers, and holder distributions.

strong NFT Analytics. Assessing trends in minting, trading volume, and ownership across NFT collections.

Security & Compliance. Identifying suspicious activities or compliance with decentralized governance rules.

Challenges

Pseudonymity. Mapping wallet addresses to real users is difficult.

Data Volume. Blockchains produce massive amounts of data, often requiring specialized infrastructure.

Cross‑Chain Complexity. Data fragmentation across different blockchains complicates comprehensive analytics.

Data Interpretation. Understanding the context behind a transaction (e.g., was it a swap, deposit, or mint?) often requires decoding smart contract interactions.

Free Tools for Web3 research

DefiLlama. A TVL aggregator, offers real‑time data for protocols and chains, covering metrics like TVL, DEX volumes, and protocol rankings.

Dune.com. Explore 100,000+ community real‑time data visualizations, supporting over 100 networks

DeBank is a comprehensive system to measure the authenticity, activity and value of Web3 users.

Top Code Packages for Blockchain Data Access

Python:

web3.py. One of the first software packages to easily use the contract ABI and node provider (client) on Ethereum.

ethereum‑etl. Used by Nansen and Google BigQuery for on‑chain fetching at a specific block range and can be easily exported to different databases or file types.

mev‑inspect‑py. Query MEV data by block (i.e. miner payments/profits, swaps, arbitrage, etc.). This FlashBots data can also be found in Dune.

Golang:

trueblocks‑core. This tool can get the transaction history of any address very quickly.

Javascript/Typescript:

ethers.js/ts. Web3 script package widely used in front‑end and smart contract test suites such as Truffle and Hardhat.

How to Track Decentralized Finance

Unlike traditional finance, DeFi runs on transparent blockchain networks, making all transactions public — but interpreting that data requires specialized tools.

DeFi analytics are vital for investors. By analyzing TVL growth, trading volumes, and user activity, investors can identify promising protocols and manage risks. For example, a protocol with rapidly increasing TVL might indicate strong community support, while declining metrics could signal potential issues. Traders use analytics for risk management and passive‑income strategies like yield farming and advanced tactics such as delta‑neutral strategies.

However, you should also be aware of limitations, such as market cap including inaccessible coins and TVL calculations potentially double‑counting assets, requiring careful evaluation of data sources. (Piercing the Veil of TVL: DeFi Reappraised)

Key DeFi Analytics Metrics

Total Value Locked (TVL). Measures how much crypto is staked or deposited in a protocol.

Liquidity Pool Composition. Shows which tokens are paired, their weights, and overall pool value.

APY & Yield. Tracks interest rates on lending, borrowing, or farming positions.

Trading Volume & Slippage. Useful for evaluating DEX performance and pricing efficiency.

Protocol Revenue. How much income the protocol generates from fees or services.

Wallet Distribution & Activity. Evaluates decentralization and whale concentration risks.

Smart Money Flows. Observes movements of high‑performing wallets into or out of protocols.

NFT Analytics

NFT analytics is the process of tracking, analyzing, and visualizing NFT‑related data, including price trends, ownership history, rarity, collateral, reputation, trading volume, and project status.

As the NFT ecosystem evolves, NFT analytics will evolve towards AI‑based valuation and forecasting, hybrid on‑chain and off‑chain models.

Key NFT metrics to watch for

Floor Price. The lowest price at which an NFT in a collection is placed on the market.

Trading Volume. The total value of sales over a given period – a strong indicator of liquidity and demand.

Unique Holdersю Shows how many wallets hold NFTs in the collection; higher numbers indicate decentralization

Rarity Scores. Allows you to determine how unique or rare an NFT is within its collection.

Wash Trading Detection. Identifies suspicious or manipulated trades, which is especially important for new projects.

Collateral. Determines whether the NFT under review contains added value in the form of coins, tokens, or other NFTs within it.

Social and Community Metrics. The number of subscribers, Discord activity, and engagement are indirect indicators of a project's momentum.

Try Free Envelop NFT Oracle

Why it's important to track collections

Flippers. Track short‑term price movements and liquidity.

Collectors. Protect against fraud and identify rare items before they become widely recognized.

Traders. Track secondary sales, wallet distribution, and community growth.

DAOs and Projects: Analyze holder engagement and token dynamics to inform roadmaps.

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Frequently Asked Questions (FAQs)

Can Web3 analytics tools help with regulatory compliance?

Yes, Web3 analytics tools can significantly aid in regulatory compliance. These tools offer features like real‑time transaction monitoring, risk assessment, and automated reporting, helping businesses stay compliant with evolving regulations. They facilitate efficient audit trails, KYC/AML checks, and proactive identification of potential risks, reducing the likelihood of penalties and legal challenges.

Can NFT analytics prevent scams?

While not foolproof, wallet distribution, trade activity, and social metrics can help identify red flags.