SATS Rebound Performance and Future Outlook

Since the rebound of Bitcoin from its bottom in early July, the price of SATS has increased by over 200%, standing out in both the inscription track and the overall market. This strong performance is attributed to the significant improvement in SATS's fundamentals, as well as long-term capital accumulation. In the next two months, SATS is likely to become one of the most noteworthy projects in the Bitcoin ecosystem.

SATS Establishing Its Role as Gas Fees

A certain wallet platform is developing a BRC20 exchange module, planning to launch it on the Bitcoin mainnet and its self-developed Layer 2 network. Although the release date for the mainnet version has not yet been determined, the Layer 2 network version is expected to go live in September this year. The platform has clearly stated that whether on the mainnet or the Layer 2 network, the SATS of BRC20 will serve as the gas fee for transactions, providing users with a consistent experience.

New Development Direction

Development of the brc20 exchange module

This module aims to provide a foundation for other teams to build their own exchange platforms. This will make BRC20 asset trading more standardized and transparent, no longer relying on centralized indexers. Currently, most of the work on this module has been completed, with the remaining work mainly focused on optimizing indexer recognition capabilities and ensuring the consistency of computational results.

A new network based on the BRC20 standard

The goal of this new network is to expand the functionality of Bitcoin. It will provide the same exchange capabilities as the mainnet, ensuring good liquidity from the start. In the future, Bitcoin and other mainnet assets may also be wrapped as brc20 assets for use on this network.

The network will also introduce a competitive rollup mechanism that allows users to earn transaction fees by submitting aggregated results, similar to the role of miners in the Bitcoin network.

Large-scale Airdrop Event

To commemorate Bitcoin Pizza Day, a certain platform launched a new inscription and conducted a free airdrop. Over 200,000 addresses participated in this event, making this inscription one of the most held assets among brc20 and rune assets.

Market Data Analysis of SATS

Among the popular BRC20 assets, the number of SATS holders is relatively high, and the concentration of chips is also high, indicating a strong investor consensus.

From the price trend, SATS has started to rebound after a 4-month decline and is currently impacting the previous area of concentrated trading. Data from the futures market shows that the proportion of long positions is higher, and the recent rapid increase mainly comes from forced liquidation of short positions.

Summary and Outlook

1. SATS has transformed from a simple meme token into a functional token with actual utility, becoming the gas fee for the brc20 exchange system. With the development and promotion of related products, its usage scale is expected to expand rapidly.

2. Considering the development progress of related products, the actual application of SATS may not be fully launched until after September. Coupled with the current market trends, SATS still has room for growth in the coming months.

3. Risks to watch include the nature of the funds and competitors. The funding behind SATS is still primarily from Eastern sources, and there is competition between the BRC20 scheme and other Bitcoin scaling solutions (such as UTXO + Runes), which may lead to a potential transfer of funds in the future.