Glossary

NUPL

NUPL (net unrealized profit/loss) is the difference between market value and realized value, divided by market value.

NUPL stands for net unrealized profit/loss. The formula is market value minus realized value, divided by market value. The result is the share of the market value that comes from unrealized profit, after the unrealized losses are subtracted.

A value above zero means the holders as a group sit on an unrealized profit. A value below zero means they sit on an unrealized loss. A value near zero means the price is close to the average cost of all coins. The value cannot exceed 1.

Some charts divide NUPL into named zones, such as belief or euphoria. These names and limits come from the chart author. They are descriptive labels for past readings. They do not predict the next move. NUPL also hides how the profit is spread. A few holders with large profits can lift the average.