From 4.63% to 24.30%, why did TAO become a dark horse in the AI track?

TAO (Bittensor) continues its upward momentum today, with a 24-hour increase of 4.63%, currently trading at $284.09, hitting a recent high of $300.09. Even more noteworthy is that over the past 7 days, TAO has gained 24.30%, with a market capitalization surpassing $3 billion. Against the backdrop of intensifying competition in AI crypto assets, TAO’s steady performance is supported by multiple factors, including increased institutional attention, accelerated ecosystem development, and improvements in network fundamentals.

Key Drivers Behind Short-Term Price Surge

According to the latest news, the catalysts for this round of TAO’s rise are quite substantial. First, is the release of institutional-level good news. Grayscale has officially filed for a TAO spot ETF, signaling that TAO may enter traditional financial investment channels, potentially attracting long-term institutional funds in the future. Additionally, within Grayscale’s AI Fund, TAO accounts for 29.88% of the holdings, making it the largest position in the fund, which fully reflects institutional recognition of its prospects.

Second, is the improvement in network fundamentals. After the Bittensor network’s halving mechanism was completed, the daily new TAO tokens added significantly decreased, easing market selling pressure. This is similar to Bitcoin’s halving logic, where tightening supply often reinforces scarcity expectations.

Ecosystem Development as a Long-Term Support

Compared to short-term price fluctuations, the improvement in TAO’s fundamentals is more worth noting. Bittensor and HackQuest have officially launched the “Build on Bittensor” global developer program, an important initiative for ecosystem expansion. The program centers on subnet development, promoting decentralized AI ecosystem participation through structured learning paths and practical engagement for developers, researchers, and builders worldwide.

The tangible results of this initiative are already evident. The touring activities have attracted over 500 developers and AI researchers, demonstrating sustained interest in Bittensor’s subnet mechanism and decentralized incentive design. As a further step, the Bittensor Subnet Ideathon has been officially launched, where participants will design and build subnet architectures, with opportunities to receive cash rewards and ecosystem support. This move aims to expand the developer base and drive more innovative applications from concept to deployment.

Significance of Institutional Recognition

Grayscale’s actions are not isolated. In the context of traditional financial institutions gradually opening up crypto asset allocations, TAO’s support through institutional investment products reflects its rising status in AI crypto assets. Especially amid increasing competition in the AI sector, TAO’s deepening ecosystem and developer initiatives demonstrate ongoing fundamental development.

This recognition not only boosts market confidence in TAO but also lays a more solid foundation for its medium- and long-term growth. The expansion of the developer base and the refinement of the subnet ecosystem are translating into real network effects for the project.

Future Focus Areas

Going forward, TAO’s performance will mainly depend on several key factors. First, the actual progress and approval timeline of the Grayscale ETF product, which will directly impact the inflow of institutional funds. Second, the effectiveness of ecosystem development, particularly whether new developer programs can attract more high-quality subnet projects. Third, the overall market sentiment in the AI sector, as TAO needs to maintain a relative advantage over competitors like RENDER.

Summary

TAO’s short-term daily increase of 4.63% and a 7-day cumulative rise of 24.30% are not merely speculative, but are driven by multiple resonating factors such as rising institutional attention, accelerated ecosystem development, and improved network fundamentals. The launch of developer programs and Grayscale’s institutional support have opened new possibilities for the project’s medium- and long-term growth. Of course, the actual results of ecosystem development, the progress of institutional product deployment, and the overall AI market trend will remain key variables in determining whether TAO can sustain its upward trend. For investors interested in AI crypto assets, TAO’s recent performance is indeed worth continuous monitoring.