From the True Market Mean valuation framework, we can derive variants of popular market indicators such as Net Unrealized Profit/Loss (NUPL). This model takes the difference between the spot valuation of the Active Supply (Active Cap) and the Investor Cost Basis (Investor Cap), and then normalizes by the Active Cap.

AVIV NUPL = (Active Cap - Investor Cap) / Active Supply

This oscillator provides a gauge as to the relative degree of profit (positive) or loss (negative) value held within the economically active supply. AVIV-NUPL effectively discounts lost and long dormant coins in a responsive and self-correcting way, negating the observable long-term upwards drift observable in cycle lows of the original NUPL metric.

Coined By

This metric was developed within the Cointime Economics framework for Bitcoin. This project was a joint venture between Glassnode and ARK Invest, with full details available in two formats: an overview primer (Version I published via ARK) and a comprehensive guide for specialists (Version II published via Glassnode).