SATS increased by 250% in two days, what happened in the BRC-20 market?

An Astonishing 250% Rise in SATS Within 48 Hours - What Drove the Surge in the BRC-20 Market?

Author: Loopy

Recently, the BRC-20 token sats has been consistently rising in value. Coingecko data shows that over the past two weeks, sats has been hovering around 0.00000002 USDT, but in the past two days, the price has rapidly climbed, reaching a high of over 0.00000007 USDT, with a peak increase of nearly 250%. What has been happening in the BRC-20 market recently?

The meme coin that can never be fully minted

When it comes to sats, people’s biggest impression is its incredibly large supply. The total supply of sats is 2,100,000,000,000,000, which is 21 quadrillion, a hundred million times that of Bitcoin.

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Because of this, many users initially did not believe that this BRC-20 token could ever be fully minted. However, the enthusiasm of the users was strong, and sats, this meme coin with the name of Satoshi Nakamoto, was eventually fully minted.

On September 24th, the minting progress of sats reached 100%, with a total of 21,107,258 minting transactions and 36,061 holders. The minting process started on March 9, 2023, and took a total of 6 months.

In terms of the number of participants, there are enough sats, which represents a certain degree of “decentralization”. And the name of the token itself is a kind of “inherent advantage”, giving sats a certain advantage in the meme race.

Meme coin transformed into a utility token

With the expansion of the sats community, UniSat, the largest wallet developer in the BRC-20 ecosystem, has also set its sights on this “delicious cake”. The UniSat team is trying to empower sats and increase its use cases. (Odaily Note: UniSat Wallet is a Chrome extension wallet for the BTC ecosystem, helping users store, mint, and transfer BRC-20 tokens, including buying and selling BTC, NFTs, domains, etc.)

The story of “empowering” meme coins is not new in the crypto world. Previously, DOGE and SHIB had caused market discussions due to their “chain launches”. This time, the story comes from the consumption of swap fees. In the newly launched brc20-swap by UniSat, sats will be used as a fee, resulting in users consuming a large amount of sats.

UniSat Wallet stated that brc20-swap will charge a 0.3% service fee to all participating traders, with approximately 1/6 (0.05%) being collected by UniSat, and the remaining 5/6 (0.25%) being distributed among all liquidity providers of the trading pairs. This fee structure is mainly based on the current fee rate standards used by UniSwap. As for the use of fees, UniSat will donate 2% of the revenue to L1F (Layer1Foundation). In addition, UniSat will open up the full explanation and verification source code of brc20-swap to promote early support from indexers.

Currently, it appears that the brc-20 protocol, and even the entire Ordinals ecosystem, is still in its early stages, with UniSat occupying a significant market share and influence. Sats are highly regarded by UniSat and provide great positive expectations for themselves. OKX data shows that sats have generated approximately $2 million in trading volume in the past 24 hours.

Brc20-swap encounters twists and turns upon launch

Previously, due to the “primitive” user experience and poor liquidity, brc-20 tokens still belonged to a “niche” circle in the Bitcoin ecosystem, and the lack of infrastructure made it difficult for EVM whales to enter. UniSat’s brc20-swap launch opened the door for more users to trade BRC-20 tokens in the Bitcoin ecosystem and faced some setbacks.

On September 27th, UniSat Wallet announced the launch of the brc 20-swap testnet, allowing users to mint BRC-20 tokens, deposit, trade, and add liquidity on their test network.

On October 10th, UniSat Wallet released the mainnet schedule for brc20-swap, planning to go live on October 25th.

On October 22nd, UniSat encountered technical difficulties. Some users discovered that different markets were using different versions of ord, which indexed different ordinals. There was a double-spending risk when trading BRC-20 before MagicEden, OKX, and UniSat Wallet utilized the same ordinals.

UniSat responded in a post on X: “We have noticed that there is an issue with BRC-20 indexing due to the different versions of ord software being used. UniSat Wallet and services are consistent with the current ord 0.9 version to ensure correct matching with ordinals.com results. We are monitoring the work of contributors and indexers and will notify our users promptly.” On the same day, Magic Eden suspended BRC-20 trading.

On October 25th, the scheduled launch date for brc20-swap’s mainnet arrived. However, UniSat delayed the launch of the product and pushed its mainnet release to October 31st. They also stated that during the initial mainnet launch period, the team would continue to distribute Prime Access for free; as more users join, the team will closely monitor the system’s performance and promptly address any issues that may arise. After a series of iterations, all features will eventually be opened to all users.

On November 1st, Beijing time, brc 20-swap’s mainnet officially went live. However, unlike typical “permissionless” DEXes, brc20-swap currently requires a certain level of “permission” before trading can be enabled.

In the initial batch of assets launched, UniSat included 14 mnemonic assets in the brc20-swap mainnet’s initial support list. These assets are: sats, ordi, trac, oshi, btcs, oxbt, texo, cncl, meme, honk, .bit, vmpx, pepe, mxrc. Specifically, asset trading is conducted on a “on-demand trading” basis: withdrawal requests can only be made when new users deposit the relevant assets into brc20-swap.

BRC-20 Ecological can go far, it seems too early to draw conclusions now, let the bullets fly for a while, and wait for development quietly.

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