The Rise of SATS: The New Darling in the BRC20 Ecosystem

Since the rebound of Bitcoin in early July, SATS has performed remarkably, with an increase of over 200%. This not only leads in the inscription track but also ranks among the best in the entire market. The outstanding performance of SATS is attributed to significant changes in its fundamentals and long-term capital accumulation. In the next two months, SATS is likely to continue being one of the important assets worth关注 in the Bitcoin ecosystem.

SATS as a New Role for Gas Fees

A well-known wallet is developing a brc20 exchange module, which is planned to be launched on the Bitcoin mainnet and its self-developed second-layer network. Although the release date for the mainnet version has not yet been determined, the second-layer network version is expected to go live in September this year.

The wallet clearly states that its goal is to provide users with a seamless experience, whether on the mainnet or the layer two network. The main differences between the two versions are transaction speed and cost, but both will be based on the brc-20 protocol and use SATS as gas fees.

New Development Directions

1. Development of the brc20 exchange module

This module aims to standardize and unify the trading of brc20 assets, eliminating reliance on centralized and information-asymmetric indexers. Currently, the development work is nearing completion, with remaining tasks including:

• Assist other indexers in identifying and calculating inscriptions related to exchanges.
• Ensure the consistency of calculation results to avoid accounting discrepancies.

2. New network based on BRC20 standard

This new network aims to expand the functionality of Bitcoin. It will provide the same exchange capabilities as the mainnet, ensuring that projects have good liquidity from the very start. In the future, Bitcoin and other mainnet assets may also circulate on this network as wrapped assets, providing greater flexibility.

The network will also introduce a competitive rollup mechanism that allows users to earn transaction fees by submitting summarized results, similar to the work of Bitcoin miners. This further establishes SATS as the network's gas fee.

3. Large-scale Airdrop Event

To commemorate Bitcoin Pizza Day, a certain platform launched a new inscription and airdropped it for free to users. This airdrop is different from previous public minting, as users do not need to pay any additional fees to claim it. Over 200,000 addresses participated in this event.

Market Performance of SATS

1. Holder and Market Cap Analysis

Among popular brc20 assets, SATS has a high percentage of first addresses and a large number of holders, indicating a high concentration of chips and consensus among holders. However, its market capitalization is still lower than that of some competitors.

2. Price Trend

SATS experienced a 4-month decline after a surge at the end of February. Currently, it has bottomed out and is challenging the previous trading zone around 0.0003, with the next target possibly near 0.0005.

3. Contract Data

The latest contract data shows a higher proportion of long positions. The recent rapid increase was mainly driven by the liquidation of short positions. Above 0.00028, there have not yet been a large number of new short positions formed.

Summary

1. The positioning of SATS has undergone significant changes, becoming a key component in the brc20 ecosystem. In addition to being a meme token in the Bitcoin ecosystem, it now also has real application scenarios.

2. The development of SATS still has time and price expectations. The new network is expected to go live in September, and the actual application of SATS as gas fees will gradually be realized afterwards. In terms of price, considering the accumulation time and overall market trends, there may still be room for an increase in the coming months.

3. Risks to pay attention to include the attributes of funds and horizontal competition. The funding structure behind BRC20 may affect its development. In addition, BRC20 solutions are in competition with other Bitcoin scaling solutions (such as UTXO+runes), and it is necessary to monitor whether funds will flow between different solutions in the medium term.