Original source: Cycle Capital
Original author: Alfred @gametorich
Since BTC bottomed out on July 5, SATS has risen by more than 200%+. Not only is it the best-performing target on the Inscription track, it is also among the best in rebound performance in the entire market. The reason behind this is that the fundamentals of SATS are significant. The change is in line with the market maker's rise after a long period of accumulation. For at least the next two months, SATS will be one of the targets worthy of focus in the BTC ecosystem. This article will review and sort out the changes in SATS.
1. SATS determines the Gas fee
Unisat is currently developing the brc20 swap module, which will be pushed to Bitcoin's mainnet and Fractal Bitcoin, a second-layer network developed by Unisat, in the future. In terms of development progress, the release date of the swap on L1 is subject to further confirmation, but Fractal swap is a product that is fully completed within the time frame and is scheduled to go online in September this year.
In Unisat’s article introducing the Swap module on July 7, it was 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 a user’s perspective, the main difference provided by Fractal Swap is the faster confirmation speed and lower overall fees on Fractal. They are similar in that both are based on the brc-20 protocol and use brc-20 sats as gas fees.”
Source: Unisat official
2. Unisat’s new narrative this round
Development of brc20 Swap
The core goal of brc20 Swap is to give other teams the opportunity to build their own exchange platforms based on UniSat's code. 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 the UniSat Indexer to effectively identify and count inscriptions associated with exchange modules.
(2) Ensure that the calculations submitted by Unisat are consistent with those of other teams to avoid accounting differences.
Fractal Bitcoin, a network built on the brc20 standard
Fractal Bitcoin aims to expand the Bitcoin network through the brc20 standard. On Fractal Bitcoin, Unisat will provide a product with the same functions as the swap module of the main network - Fractal Swap, ensuring that projects on Fractal Bitcoin have good liquidity from the beginning. In subsequent iterations, BTC and other main network assets can also exist on Fractal Bitcoin as brc-20 wrapped assets, providing greater flexibility.
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, thereby earning transaction fees (brc-20 sats) generated by all transactions in the summary. This process is similar to miners submitting packaged transactions to the network and receiving block rewards. The status of sats as a network gas fee is further clarified here.
3. Large-scale airdrop inscription PIZZA
The pizza inscription was launched by UniSat to commemorate the 14th Bitcoin Pizza Festival and was airdropped to platform users for free. Unlike the previous public minting of inscriptions, users can claim it without spending any extra 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 claim.
Pizza's previous claim conditions were as follows:
(1) Addresses that have interacted with UniSat services within the past 3 months
(2) Addresses holding more than 500 UniSat points
(3) Addresses that have interacted in the brc 20-swap module
(4) UniSat OG Pass holders can obtain this inscription
Currently, pizza has become one of the most held assets in brc20 and rune.
Through the above three new narratives, Unisat strives to push BRC20 assets back into the spotlight of the BTC ecosystem.
4. Data tracking of SATS
Comparison of holders and market value
Among the popular BRC20 assets, Pizza has the most holders, but the lowest chip concentration; SATs has the highest first address ratio and more holders, and is higher than Ordi and RATs in chip concentration and holder consensus, while its market value is smaller than Ordi.
Source: Cycle Capital, OKX Web3 Wallet
Chip Distribution
From the weekly chart, SATS has been falling since it rose at the end of February, and it has been 4 months now. The bottom cost of part of the 1000SATS exchange position is around 0.00018. The current bottom rise trend is out of the second week, impacting the previous transaction concentration area around 0.0003, and the next transaction concentration area is around 0.0005.
Source: tradingview, OKX
Contract data
In the Binance contract data on July 17, the account long-short ratio was 0.751, and the long-short ratio of large positions was 1.6425. The proportion of bullish funds was higher, and the rapid rise in 24 hours mainly blew up the short orders. In the liquidation map, 1000SATS did not form many new short orders above 0.00028 after blowing up the short orders at 0.000225 and 0.00024.
Source: coinglass, binance
5. Conclusion
After the narrative update, SATS is different from other inscriptions. SATS becomes the gas fee of BRC20 swap on the Bitcoin mainnet and Fractal network. In addition to the meme attributes of the BTC ecosystem, it has a tangible token use case, and with the product development and vigorous promotion of Unisat, the scale will expand rapidly in the future.
· 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, and the actual implementation and use of sats as gas fees will continue after September. In addition, in terms of the accumulation time and increase of the K-line, SATS will have further price expectations in the next few months as the market improves.
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 is in competition with the solution of utxo+runes. Recently, the UTXO swap based on RGB++ has also been launched on the mainnet. In the medium term, we should pay attention to whether there is a capital conversion between the two.
「Original source」
