The Rise of SATS: A New Star in the BTC Ecosystem

Since Bitcoin hit bottom and rebounded on July 5, the increase of SATS has exceeded 200%, making it one of the best-performing assets in the inscription track. Behind this impressive performance is a significant change in the fundamentals of SATS and the long-term accumulated market demand. For at least the next two months, SATS is likely to continue being a focal point worth paying attention to in the BTC ecosystem. Let's review and sort out the important recent changes in SATS.

1. SATS Established as Gas Fees

A certain trading platform is developing a brc20 swap module, planning to deploy it on the Bitcoin mainnet and the platform's self-developed Layer 2 network, Fractal Bitcoin. Although the specific launch date for the swap on L1 has not been determined, the Fractal swap is expected to go live as scheduled in September this year.

The platform clearly stated in the introduction article of the Swap module released on July 7 that their goal is to provide a unified user experience for the Bitcoin mainnet and Fractal Bitcoin. From the user's perspective, the main advantages of Fractal Swap are faster confirmation times and lower overall fees. Both are based on the brc-20 protocol and use brc-20 sats as gas fees.

2. The Launch of the New Narrative

development of brc20Swap

The core goal of brc20 Swap is to provide other teams with the opportunity to build their own trading platforms based on the code of a certain platform. This will transform the trading of brc20 assets from relying on centralized, information-asymmetrical indexers to a standardized and unified model.

Currently, most of the work on the swap module has been completed, and the remaining work mainly includes:

• Assist other indexers in effectively identifying and calculating inscriptions related to the exchange module.
• Ensure that the calculation results are consistent with other teams to avoid accounting discrepancies.

Fractal Bitcoin Network

Fractal Bitcoin aims to expand the Bitcoin network through the brc20 standard. On this network, Fractal Swap will be provided with the same functionality as the mainnet swap module, offering good initial liquidity for projects. In the future, BTC and other mainnet assets can also exist as brc-20 wrapped assets on Fractal Bitcoin, providing greater flexibility.

Fractal Swap will implement a competitive rollup mechanism, allowing users to submit aggregated results to the sequencer in order to earn transaction fees (brc-20 sats). This process is similar to miners submitting packaged transactions and receiving block rewards, further establishing sats as the network gas fee.

PIZZA inscription large-scale airdrop

The PIZZA inscription was launched to commemorate the 14th Bitcoin Pizza Day and was airdropped for free to platform users. Unlike previous public mints, users can claim it without any additional fees, and the platform will send the inscription to the users' wallets once the engraving is completed. Over 200,000 addresses participated in this claiming event.

The eligibility requirements include:

• Addresses that have interacted with the platform services within 3 months
• Addresses holding more than 500 platform points
• There are interactive addresses within the brc20-swap module.
• Platform OG Pass holders

PIZZA has now become one of the assets with the most holders in BRC20 and Rune.

Through these three new narratives, a certain platform is striving to bring BRC20 assets back to the focus of the BTC ecosystem.

3. SATS Data Tracking

Holder and Market Value Comparison

Among the popular BRC20 assets, PIZZA has the highest number of holders but the lowest concentration of chips. SATS has the highest proportion of first addresses and a larger number of holders, outperforming ORDI and RATS in terms of chip concentration and holder consensus, while its market capitalization is lower than that of ORDI.

Chip Distribution

From the weekly perspective, SATS has been continuously declining for about 4 months after a rally at the end of February. The partial bottom cost for accumulating 1000 SATS on the exchange is approximately 0.00018. Currently, the bottom upward trend has lasted for two weeks and is impacting the previous 0.0003 trading dense area, with the next trading dense area around 0.0005.

Contract Data

As of July 17, data from a certain trading platform's contracts show that the account long-short ratio is 0.751, while the large account long-short ratio is 1.6425, indicating a higher proportion of bullish funds. The rapid surge within 24 hours primarily liquidated short positions. The liquidation map shows that after liquidating short positions at 0.000225 and 0.00024 with 1000 SATS, no significant new short positions have formed above 0.00028.

4. Summary

1. With the launch of the new narrative, the positioning of SATS has undergone significant changes. It is no longer just a meme token in the BTC ecosystem, but has also become the gas fee for brc20 swaps on the Bitcoin mainnet and the fractal network. As product development and promotion continue, its application scale is expected to expand rapidly.

2. There is still room for upward movement in time and price nodes. The Fractal network is expected to officially launch in September, and the actual application of SATS as a gas fee will gradually unfold thereafter. Considering the accumulation time and price increase on the K-line chart, SATS still has the potential for further increases in the coming months.

3. The risks of SATS may come from the underlying funding attributes and competition in the horizontal track. The funding behind brc20 is still primarily from Eastern capital, and there is a competitive relationship between the Bitcoin solutions of brc20 and the utxo+runes solution. Recently, the UTXO swap based on RGB++ has also been launched on the mainnet, and in the medium term, attention should be paid to whether there is a situation of capital conversion between the two.