Analysis of the New Changes and Market Performance of SATS

Since the rebound of Bitcoin on July 5, SATS has risen over 200%, becoming one of the best-performing assets in the inscription field. This significant growth is due to major changes in the fundamentals of SATS, as well as market reactions after long-term accumulation. In the next two months, SATS will continue to be an important asset worth paying attention to in the Bitcoin ecosystem.

1. SATS Established as Gas Fees

A certain wallet platform is developing a brc20 exchange module, which is planned to be launched on the Bitcoin mainnet and its developed layer two network. While the release date for the mainnet version has yet to be determined, the layer two network version is expected to go live in September this year. The platform has made it clear that the new exchange system will provide a unified user experience on both the mainnet and the layer two network, with both being based on the brc-20 protocol and using brc-20 sats as gas fees.

2. New Development Directions

development of brc20Swap

The brc20 Swap aims to provide other teams with the opportunity to build exchange platforms. This will make trading brc20 assets more standardized and transparent, no longer relying on centralized indexers. Currently, the development team is refining the indexer recognition capabilities and ensuring the consistency of computation results.

Network based on the BRC20 standard

The new Layer 2 network aims to expand the functionality of the Bitcoin network. It will provide the same exchange capabilities as the mainnet, ensuring good liquidity. In the future, Bitcoin and other mainnet assets may also exist as wrapped assets on this network.

In addition, the new network will introduce a competitive rollup mechanism that allows users to earn transaction fees by submitting aggregated results, similar to the Bitcoin mining mechanism.

large-scale airdrop event

To commemorate Bitcoin Pizza Day, a certain platform launched a free airdrop event, with over 200,000 addresses participating. This made the inscription one of the BRC20 assets with the most holders.

3. SATS Market Data Analysis

Holder vs Market Cap

Among the popular brc20 assets, a certain airdrop inscription has the most holders, but the lowest chip concentration. SATS outperforms other major competitors in terms of chip concentration and holder consensus, while having a relatively low market cap.

price trend

After rising at the end of February, SATS has continued to decline for about 4 months. Recently, it has rebounded from the bottom and is approaching the trading volume zone around 0.0003, with the next important resistance level around 0.0005.

contract data

The contract data from July 17 shows a high proportion of long positions. The rapid increase within 24 hours was mainly driven by short liquidations. There has not yet been a significant formation of new short positions above 0.00028.

4. Conclusion

1. The positioning of SATS has undergone a significant change, becoming a gas fee within a specific ecosystem, and has practical application scenarios.

2. The product development progress and price trends still have room for growth. After the official launch of the second-layer network in September, the actual application of SATS will further expand.

3. It is necessary to pay attention to the potential risks brought by the attributes of funds and horizontal competition. The BRC20 scheme competes with other Bitcoin expansion schemes, and attention should be paid to the changes in the flow of funds between different schemes in the medium term.