Net Unrealized Profit (NUP) measures the aggregate unrealized profit held across all UTXOs currently in profit - calculated by summing the product of each UTXO's value and the positive price difference between when it was created and destroyed, normalized by market capitalization. Unlike NUPL, which captures the net position of the entire market including losses, NUP isolates only the profitable side of the ledger.
A rising NUP indicates that an increasing share of circulating supply is sitting in unrealized profit relative to market cap - historically associated with growing distribution incentive as more holders have reason to sell into strength. Sustained increases in NUP without a corresponding price pullback signal that profit-taking pressure is building across a widening base of holders, a condition that has frequently preceded periods of increased sell-side activity.
Read alongside NUPL and Net Unrealized Loss, NUP provides a decomposed view of market sentiment - isolating the profitable cohort's contribution to overall unrealized positioning and helping identify when the balance between profit-driven selling incentive and loss-driven holding behavior is shifting at a market structure level.
