Cycle Capital: Key recent narrative developments for SATS and Unisats
Original source: Cycle Capital
Original author: Alfred @gametorich
Since BTC bottomed out and rebounded on July 5, SATS has risen by more than 200%+. It is not only the best performing target in the inscription track, but also ranks among the best in the rebound performance of the entire market. The reason behind this is the significant change in SATS fundamentals and the increase after the dealer has accumulated funds for a long time. In the next two months at least, SATS will be one of the targets worthy of special attention in the BTC ecosystem. This article will review and sort out the changes of SATS.
1. SATS is determined to serve as Gas fee
Unisat is currently developing the brc20 swap module, and will push it to the Bitcoin mainnet 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 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 the article introducing the Swap module on July 7, Unisat clearly stated, "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. The new narrative launched by Unisat in this round
The development of brc20 Swap
The core goal of brc20 Swap is to give other teams the opportunity to build on UniSat 's code to build its own exchange platform. In the past, the transaction of brc20 assets relied on centralized, information-asymmetric indexers. The launch of brc20 Swap will make it standardized and unified.
Most of the work on the swap module has been completed. 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 differences.
Fractal Bitcoin, a network built 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 a product with the same functions as the main network swap module - Fractal Swap, to ensure 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 to 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 obtaining 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 previously launched by UniSat to commemorate the 14th Bitcoin Pizza Festival and airdropped to platform users for free. Unlike the previous public inscriptions, users can claim 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) An address that has interacted with UniSat services within 3 months
(2) An address that holds more than 500 UniSat points
(3) Addresses that have interacted in the brc20-swap module
(4) UniSat OG Pass holders can obtain this inscription
At present, pizza has become one of the most held assets in brc20 and rune assets.
Through the above three new narratives, Unisat strives to push brc20 assets back to the focus 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 continued to fall since it rose at the end of February. It has been 4 months so far. The bottom cost of part of the 1000SATS exchange position is around 0.00018. The current bottom rise is out of trend for 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 exploded the short orders. In the liquidation map, 1000SATS has not formed many new short orders above 0.00028 after the short orders of 0.000225 and 0.00024 were exploded.
Source: coinglass, binance
5. Conclusion
· After the narrative update, SATS is different from other inscriptions. SATS has become 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.
· The time and price nodes are still expected. 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 fee will continue after September. In addition, in terms of the time of K-line accumulation and the extent of increase, SATS will have further price expectations in the coming 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 main network. In the medium term, we should pay attention to whether there is a capital conversion between the two.
「 Original source "
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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