The Net Unrealized Profit/Loss (NUPL) 🔵 metric maps out the difference between unrealized profit and unrealized loss held within the coin supply, presented as a proportion of the market cap. This oscillator provides a gauge of relative progress through market cycles, and at extremes in aggregate profitability.

NUPL = (Unrealized Profit - Unrealized Loss)/ Market Cap = (Market Cap - Realized Cap) / Market Cap

Adjusted-NUPL (aNUPL) 🟠

Reviewing NUPL performance during historical bear markets, NUPL cycle lows can be seen to gradually climb since 2016. A primary driver of this macro trend is the Inert Supply (lost or long dormant coins), which heavily weigh on the magnitude of Unrealized Profit. To discount the effect of these coins, an assumption regarding the volume of Inert Supply can be deducted from Circulating Supply, which applies a modification to the market cap and realized cap components.

Here, the Supply Last Active +7 Years Ago is presumed equivalent to Inert Supply. Hence, by adjusting the market cap, NUPL can be adjusted accordingly:

aNUPL = ((Market Cap - Inert Supply * Price) - Adjusted Realized Cap) / Market Cap

Coined by

This metric was first featured by Glassnode in The Week On-chain Newsletter, Week 41 2022.