Author: Alfred @gametorich, Source: Cycle Capital Research
Since BTC bottomed out on July 5, SATS has increased by more than 200%+. It is not only the best-performing target in the Inscription Track, The rebound performance in the entire market is also among the best. The reason behind this is that the significant changes in SATS fundamentals combined with the rise of market makers after a long period of accumulation. For at least the next two months, SATS will be one of the targets worthy of attention in the BTC ecosystem. This article will review and sort out the changes in SATS.
1. SATS is confirmed to serve as Gas fee
Unisat is currently developing the brc20 swap module and will push it to the main network of Bitcoin and the second-layer network Fractal Bitcoin developed by Unisat in the future. In terms of development progress, the release date of swap on L1 needs to be further confirmed, but Fractal swap is a product that is completely completed within the time frame and is scheduled to go online in September this year.
In an article introducing the Swap module by Unisat on July 7, it was clearly stated that “By effectively integrating wallets, browsers and exchange products, UniSat aims to provide seamless and Consistent experience. From a user perspective, the main differences offered by Fractal Swap are the faster confirmation speeds and lower overall fees on Fractal. They are similar in that both are based on the brc-20 protocol and use the brc- 20 sats as gas fee ”
Source: Unisat official
2. The new narrative launched by Unisat this round
1. The development of brc20 Swap
The core goal of brc20 Swap is to give other teams the opportunity to build on UniSat The code builds its own exchange platform. In the past, the trading of brc20 assets relied on centralized, information-asymmetric indexers. The launch of brc20 Swap will make it standardized and unified.
Currently, most of the work on the swap module has been completed, and the remaining work mainly includes:
(1) Assist indexers other than UniSat Indexer to effectively identify and calculate inscriptions related to the swap module.
(2) Ensure that the calculation results submitted by Unisat are consistent with those of other teams to avoid accounting discrepancies.
2. Fractal Bitcoin, a network built based on the brc20 standard
The goal of Fractal Bitcoin is to expand the Bitcoin network through the brc20 standard. On Fractal Bitcoin, Unisat will provide functions and mainnet The same product as the swap module – Fractal Swap, ensures that projects on Fractal Bitcoin have good liquidity from the beginning. In subsequent iterations, BTC and other mainnet assets will also be able to exist on Fractal Bitcoin as brc-20 wrapped assets, providing greater flexibility.
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Source: Unisat official
At the same time, Fractal Swap will implement a competitive rollup mechanism that allows users to package their summary results into the sorter and thereby earn transaction fees (brc-20 sats) generated by all transactions within the rollup. This process is similar to miners submitting packed transactions to the network and receiving block rewards. This further clarifies the status of sats as a network gas fee.
3. Large-scale airdrop of the inscription PIZZA
The pizza inscription was previously launched by UniSat to commemorate the 14th Bitcoin Pizza Festival, and was airdropped to platform users for free. Unlike previous publicly minted inscriptions, users can apply for them without spending additional fees. UniSat will send the inscriptions to the user's wallet after the inscription is completed. At that time, more than 200,000 addresses participated in the application.
The previous application conditions for pizza are as follows:
(1) Addresses that have interacted with UniSat services within 3 months
(2) Holding more than Address of 500 UniSat points
(3) Address that has interacted in the brc 20-swap module
(4) UniSat OG Pass holders can obtain this inscription< /p>
Currently pizza has become one of the most widely held assets among brc20 and rune assets.
Through the above three new narratives, Unisat strives to push brc20 assets back into the focus of the Bitcoin ecosystem.
3. SATS data tracking
1. Comparison of holders and market capitalization
Among the brc20 popular assets, the one with the most holders is pizza. However, the chip concentration is the lowest; sats has the highest proportion of first addresses and more holders. It is higher than ordi and rats in terms of chip concentration and holder consensus, and its market value is smaller than ordi.
figure>
Source: Cycle Capital, OKX Web3 Wallet
2. Chip distribution
From a weekly perspective, SATS has continued to fall since its rise at the end of February. It has been 4 months since then. The bottom cost of opening a position on the 1000SATS exchange is at Around 0.00018, the current bottom rise has gone out of trend for the second week, impacting the previous transaction-intensive area around 0.0003, and the next transaction-intensive area is around 0.0005.
figure>
Source: tradingview, okx
3. Contract data
In the Binance contract data on July 17, the long-short ratio of accounts was 0.751, and the long-short ratio of large positions was 1.6425 , the proportion of bullish funds is higher, and the rapid rise in 24 hours mainly explodes short orders. In the liquidation map, 1000SATS has not formed many new short orders above 0.00028 after exploding the short orders at 0.000225 and 0.00024.
figure>
Source: coinglass, binance
4. Summary
< p>1. After the narrative update, SATS is different from other inscriptions. SATS has become the gas fee of brc20 swap on the Bitcoin main network and fractal network. It has practical token use cases in addition to the meme attributes of the btc ecology. With the product development and vigorous promotion of unisat, the scale will expand rapidly in the future. .
2. Time and price nodes are still expected. In the development process of the product, the fractal network will not be officially launched until September. The actual implementation and use of sats as a gas fee will not continue until after September. In addition, in terms of the time and amplitude of the K-line's fundraising, SATS will be in the next few years. Along with the improvement of the market, there are further price expectations.
3. The risk of SATS may come from the nature of the funds behind it and the competition in the horizontal track. The funds behind brc20 are still mainly Eastern funds, and the Bitcoin solution of brc20 has the same characteristics as the solution of utxo+runes. Competitive relationship. Recently, the UTXO swap based on RGB++ has also been launched on the main network. In the mid-term, attention should be paid to whether there is any ebb and flow of fund conversion between the two.
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