Net Unrealized Profit/Loss (NUPL) is calculated as the difference between an asset’s Market Capitalization and its Realized Capitalization. Realized Cap refers to the aggregate value of all coins based on the price at which they last moved. NUPL, therefore, represents the theoretical net profit or loss that would be realized if all coins in circulation were sold at the current market price.This metric also includes the unrealizable profits or losses associated with lost or inactive coins, which cannot be sold but still impact the calculation.Adamant Capital, the originators of the metric, note that while NUPL reflects the total dollar value of paper gains and losses in a network like Bitcoin, it does not account for relative scale. To address this, Relative Unrealized Profit/Loss is used—NUPL divided by Market Cap—to normalize sentiment signals over time and across market cycles.Amberdata provides NUPL data for both Ethereum (ETH) and Bitcoin (BTC).
**Traders: **NUPL can serve as a measure of opportunity cost risk. As NUPL increases, the unrealized gains held by participants also rise, potentially indicating elevated incentive to sell and capture profits. This can provide signals around market turning points or investor behavior under stress.**Analyst: **Analysts can use NUPL to evaluate market-wide positioning and sentiment, helping to assess whether a network is in a profit-taking or accumulation phase. The metric may also support forecasting potential inflection points based on historical profit/loss behavior.**Researcher: **NUPL supports research into the relationship between price action and investor psychology. It can help quantify correlations between sentiment, profit-taking behavior, and price trends. For instance, researchers may study how long a new all-time high in NUPL persists before reversing, potentially offering insight into broader market cycles.
