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Author: Alfred @gametorich, Source: Cycle Capital Research
Since BTC bottomed out and rebounded on July 5, SATS has risen by more than 200%+, not only is it the best performing target in the inscription track, but also ranks among the top in the rebound performance of the entire market. The reason behind this is the significant changes in the fundamentals of SATS.Cooperate with the market makers’ rise after a long period of time to absorb funds.In the next at least 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 determines to act as a Gas fee
Unisat is currently developing the brc20 swap module and will be promoted to Bitcoin’s main network and the second-tier network Fractal Bitcoin developed by Unisat in the future.In terms of development progress, the release date of the 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 be launched in September this year.
In a July 7 Unisat introduction to the Swap module, it is clearly stated that “by effectively integrating wallets, browsers and exchange products, UniSat aims to provide a seamless and consistent experience for the Bitcoin mainnet and Fractal Bitcoin. From the user’sFrom a perspective, the main difference provided by Fractal Swap is the faster confirmation speed and lower overall costs on Fractal. Their similarity is that both are based on the brc-20 protocol and use brc-20 sats as gas fees.”
Source: Unisat official
2. The new narrative launched by Unisat this round
1. Development of brc20 Swap
The core goal of brc20 Swap is to give other teams the opportunity to build their own redemption platform based on UniSat’s code. In the past, the transaction of brc20 assets relies on centralized, information asymmetric indexers. The launch of brc20 Swap will make it standardized andUnified.
Most of the work of 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 exchange module.
(2) Ensure that the calculation results submitted by Unisat match the calculation results of other teams to avoid accounting differences.
2. Network Fractal Bitcoin built on the brc20 standard
Fractal Bitcoin’s goal is to expand the Bitcoin network through the brc20 standard. On Fractal Bitcoin, Unisat will provide products with the same functions as the mainnet swap module – Fractal Swap, ensuring that projects on Fractal Bitcoin have good liquidity from the beginning..In subsequent iterations, BTC and other mainnet assets can also exist on Fractal Bitcoin as brc-20 packaging assets, providing greater flexibility.
Source: Unisat official
Meanwhile, Fractal Swap will implement a competitive rollup mechanism, which allows users to package their summary results into the sorter, thereby earning transaction fees (brc-20 sats) generated by all transactions in the summary.This process is similar to a miner submitting packaged transactions to the network and receiving block rewards.Here, the status of sats as a network gas fee is further clarified.
3. Large-scale airdrop inscription PIZZA
The pizza inscription is UniSat previously launched to commemorate the 14th Bitcoin Pizza Festival and is airdropped to platform users for free.Unlike the previously publicly cast inscriptions, users can apply without additional fees. UniSat will send the inscription to the user’s wallet after the inscription is completed. At that time, more than 200,000 addresses participated in the application.
Pizza’s previous application conditions are as follows:
(1) Addresses that have interacted with UniSat service within 3 months
(2) Addresses holding more than 500 UniSat points
(3) Addresses that have interacted in the brc 20-swap module
(4) All UniSat OG Pass holders can obtain this inscription
Currently, pizza has become one of the most holders in brc20 and rune assets.
Through the above three new narratives Unisat strives to push BCR20 assets back to the focus of the BTC ecosystem.
3. SATS data tracking
1. Comparison between holders and market value
Among the popular assets of Brc20, the target with the most holders is Pizza, but the chip concentration is the lowest; SATs has the highest first address share and more holders, which is higher than the chip concentration and holder consensusordi and rats, at the same time, the market value is smaller than ordi.
Source: Cycle Capital, OKX Web3 Wallet
2. Distribution of chips
From the weekly perspective, SATS has continued to fall since it rose at the end of February. It has been 4 months since then. The bottom cost of some positions built on the 1000SATS exchange is around 0.00018. The current bottom rise has been trending in the second week, impacting the previousThe transaction-intensive area is around 0.0003, and the next transaction-intensive area is around 0.0005.
Source: tradingview, okx
3. Contract data
In the Binance contract data on July 17, the long-short ratio of the account was 0.751, and the long-short ratio of large investors was 1.6425. The proportion of long-short funds was higher. The rapid rise in 24 hours was mainly due to short orders.In the clearing map, 1000SATS has not yet formed many new short orders above 0.00028 after exploding short orders of 0.000225 and 0.00024.
Source: coinglass, binance
4. Summary
1. After the narrative is updated, SATS is different from other inscriptions from now on.SATS has become the gas fee of brc20 swap on the Bitcoin main network and fractal network. It has tangible token use cases outside the meme attribute of the BTC ecosystem. With the development and vigorous promotion of Unisat, the scale will expand rapidly in the future..
2. There are still expectations for the time and price nodes.In the process of product development, the fractal network will be officially launched in September. The real implementation and use of sats as gas fees will last until after September. In addition, in terms of the time and increase of K-line funding, SATS will be in the future.With the improvement of the market month, there are further price expectations.
3. The risk of SATS may be due to the fund attributes and the competition of the horizontal track. The funds behind brc20 are still mainly Oriental funds, and brc20’s Bitcoin solution is competitive with the utxo+runes solution. Recently, it is based on RGB++UTXO swap has also been launched on the main network. In the medium term, we should pay attention to whether there is a capital conversion between the two that has increased and the other.
