Net Unrealized Profit and Loss (NUPL)

# Definition

Net Unrealized Profit and Loss(NUPL) shows the difference between Market Cap and Realized Cap.
$NUPL = \frac{\text{Market Cap - Realized Cap}}{\text{Market Cap}}$

# Interpretation

NUPL is calculated as the difference between Market Cap and Realized Cap divided by Market Cap. If Market Cap is greater than Realized Cap, then NUPL>0, which means bitcoin on-chain expected value is less than what they actually have. This value indicates the increase in selling pressure.
• Net Unrealized Profit (NUP): Sum of UTxO being in profit with the price difference between created and destroyed.
• Net Unrealized Loss (NUL): Sum of UTxO being in loss with the price difference between created and destroyed.
• Net Unrealized Profit and Loss(NUPL): The difference between market value and realized value.