Why did the price of TAO go up?
Bittensor (TAO) increased by 0.58% in the past 24 hours, slightly outperforming the overall crypto market, which rose by 0.5%. This rise is supported by positive technical indicators and growing interest from large investors in decentralized AI technology.
- Institutional Buying – Publicly traded companies have increased their TAO holdings, showing confidence in the token.
- Upcoming Halving Event – The first TAO halving scheduled for December 2025 is drawing comparisons to Bitcoin’s supply-limiting events.
- Technical Breakout – The price is nearing an important resistance level at $344, based on Fibonacci analysis.
In-Depth Analysis
1. Institutional Demand (Positive Signal)
Overview:
Two publicly traded companies, Nasdaq-listed TAO Synergies and TSXV-listed xTAO, together hold about 72,000 TAO tokens, worth roughly $24 million. In July 2025, xTAO added 41,538 TAO (about $16 million) to its holdings and is staking these tokens to earn a 10% annual return (xTAO announcement).
What this means:
These companies are treating TAO like a treasury asset, similar to how MicroStrategy has approached Bitcoin. This supports the idea that Bittensor’s decentralized AI platform has strong long-term potential. Also, staking reduces the number of tokens available on the market (98.8 million TAO are staked as of August 2025), which can help support the price.
What to watch:
TAO Synergies plans to buy an additional $100 million worth of TAO by 2026.
2. Halving Event (Positive Signal)
Overview:
On December 12, 2025, Bittensor will undergo its first halving, cutting daily token emissions from 7,200 TAO to 3,600. Bitcoin’s past halving events have often led to extended price increases.
What this means:
With the supply of new TAO tokens being reduced by half, if demand continues or grows, the price could rise. TAO’s total supply is capped at 21 million tokens, and its halving schedule is similar to Bitcoin’s, which appeals to investors who value scarcity.
What to watch:
The number of validators (participants who help secure the network) leading up to the halving. More validators could indicate a stronger network.
3. Technical Momentum (Mixed Signals)
Overview:
TAO is trading close to the 50% Fibonacci retracement level at $344.25. The MACD indicator has turned bullish, suggesting upward momentum, but the RSI is neutral at 49.8, showing no clear trend.
What this means:
If TAO’s price can stay above $344, it might move toward the next target at $354. However, the 200-day moving average at $379.50 could act as strong resistance.
Conclusion
TAO’s recent price increase is driven by institutional buying, anticipation of the halving event, and some positive technical signals. However, the overall crypto market is relatively flat (+0.5%), which limits how much TAO can gain right now. The combination of AI-focused technology and Bitcoin-like token economics makes TAO stand out, but it still faces resistance near $370.
Key point to watch: Will TAO close above the $344.25 Fibonacci level within the next 48 hours to confirm a bullish trend?
What could affect the price of TAO?
Bittensor’s price depends on how widely AI is adopted, changes in its token system, and moves by big investors.
- Dynamic TAO Transition – New subnet tokens are changing how stakes work, with mixed effects.
- Institutional Accumulation – Companies listed on Nasdaq have staked over $16 million worth of TAO, showing strong confidence.
- AI Sector Momentum – Bittensor competes with tokens like FET and AGIX in the growing $26 billion AI crypto market.
Deep Dive
1. Dynamic TAO Transition (Mixed Impact)
Overview: In February 2025, Bittensor launched an upgrade called Dynamic TAO. This introduced new tokens specific to different sub-networks (like γ and ι) and created liquidity pools. Over about 100 days, the system shifted some of the staking power from the main TAO token to these new tokens. By September 2025, this transition is almost complete, which means TAO’s control over the network is less dominant.
What this means: While these new subnet tokens add more ways to use the network, TAO’s role as the main currency could weaken. After the upgrade, TAO’s price dropped about 18.6% over two months (Bittensor docs). However, activity in the subnets might increase demand indirectly through fees collected in liquidity pools.
2. Institutional Accumulation (Bullish)
Overview: Big companies listed on Nasdaq, such as xTAO (which has staked 41,538 TAO) and TAO Synergies (which bought $10 million worth), now hold about 2% of all TAO tokens in circulation. Additionally, Safello’s listing of a TAO exchange-traded product (ETP) on European stock exchanges like Deutsche Börse and Euronext makes it easier for institutions to invest.
What this means: When large companies hold and stake TAO, it reduces the number of tokens available for trading and supports the idea of TAO as the “Bitcoin of AI.” The staking rewards, around 10% annually, encourage long-term holding, which can create a supply shortage. Similar patterns helped boost Bitcoin’s price between 2021 and 2024.
3. AI Sector Momentum (Bullish)
Overview: Bittensor is the top decentralized AI token with a market value of $3.35 billion, competing with tokens like Fetch.ai (FET) and SingularityNET (AGIX). The AI crypto sector grew by 131% in 2024, driven by increased use in machine learning training and data markets (Bitget).
What this means: Growth in the AI crypto sector could raise TAO’s value. However, competitors like NEAR Protocol, which recently upgraded to handle 10,000 transactions per second, present challenges. Bittensor’s advantage lies in its large number of subnets (over 63) and fair launch tokenomics. Still, regulatory scrutiny of AI technologies remains a potential risk.
Conclusion
TAO’s outlook over the next several months balances risks from the dilution of its main token’s power against positive factors like institutional buying and growth in the AI sector. Keep an eye on the alpha/TAO stake ratio after the transition and on investment flows following the Safello ETP launch. The key question: Can Bittensor’s decentralized machine learning network compete with the AI giants dominating the industry?
What are people saying about TAO?
The Bittensor (TAO) community is caught between excitement over the upcoming halving event and concerns about price resistance, while validators are quietly optimistic about decentralized AI. Here’s what’s happening now:
- Traders are watching for a $400 breakout after weeks of uncertain price movement
- Institutions are increasing their TAO holdings, with public companies owning over 80,000 tokens
- The first halving in December 2025 is drawing comparisons to Bitcoin’s early milestones
Deep Dive
1. @johnmorganFL: Price Holding Above Support – Positive Signal
"TAO price compresses above key support – bulls targeting $400 break"
– @johnmorganFL (89K followers · 1.2M impressions · 2025-08-15 11:09 UTC)
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What this means: This is a positive sign for TAO. The price holding steady above $320–$325 suggests investors may be accumulating tokens before a potential rise. The 20-day simple moving average (SMA) at $328 is acting as a short-term support level.
2. @getmasafi: Halving Countdown – Positive Outlook
"1st TAO halving <150 days away – decentralized AI’s ‘2012 Bitcoin moment’"
– @getmasafi (216K followers · 3.8M impressions · 2025-07-28 14:10 UTC)
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What this means: This is encouraging news. The halving event will cut daily token emissions by half (from 7,200 to 3,600 TAO), which usually reduces selling pressure. Additionally, Bittensor’s growth in AI adoption might happen faster than Bitcoin’s monetary changes did.
3. CoinMarketCap Community: Resistance Challenges – Negative Signal
"TAO fails 5th test of 20-day SMA – range-bound with bearish bias until $335 break"
– CMC Community Post (9.2K votes · 2025-07-09 15:26 UTC)
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What this means: This is a short-term warning. TAO has repeatedly struggled to move above the $335–$340 range, showing weak momentum. Trading volume is low (4.37% turnover), which can increase price swings and uncertainty.
Conclusion
The outlook for TAO is mixed. On one hand, institutional investors (including Nasdaq-listed companies holding over 42,000 tokens) are accumulating, signaling confidence. On the other hand, technical indicators show price stagnation near yearly lows. The upcoming halving event supports long-term optimism, but the $320–$340 price range remains a key battleground for market sentiment. Keep an eye on the 20-day SMA crossover this week — a clear move above it could confirm a bullish trend, while failure might prolong the recent 18% price drop over the past 60 days.
What is the latest news about TAO?
Bittensor is gaining momentum with institutional investors while working through some technical challenges as interest in AI grows. Here’s the latest update:
- TAO ETPs Launch in Europe (August 19, 2025) – Safello introduced physically backed TAO exchange-traded products (ETPs) on major European stock exchanges.
- Nasdaq Companies Buy TAO (August 6, 2025) – TAO Synergies holds 42,000 TAO tokens (about $15 million) and is staking them for a 10% annual return.
- Dynamic TAO Upgrade Released (August 29, 2025) – Rewards for network participants now adjust based on their performance.
In-Depth Look
1. TAO ETPs Launch in Europe (August 19, 2025)
What happened: Swedish company Safello launched Europe’s first physically backed TAO exchange-traded product (ETP) on several major exchanges, including SIX Swiss Exchange, Euronext Paris/Amsterdam, and Deutsche Börse Xetra. This allows both institutions and everyday investors to gain regulated exposure to TAO.
Why it matters: This move boosts TAO’s liquidity and credibility, similar to how Bitcoin ETFs helped bring institutional investors into the crypto market. However, ETPs might also increase selling pressure if traders try to profit from price differences between TAO and the ETP. (Safello)
2. Nasdaq Companies Buy TAO (August 6, 2025)
What happened: TAO Synergies, a company listed on Nasdaq under the ticker TAOX, revealed it owns 42,111 TAO tokens, worth about $15 million. They acquired these through purchases and by staking, which means locking up tokens to earn rewards. The company plans to grow its validator operations, aiming for a 10% yearly return.
Why it matters: This shows strong institutional confidence in Bittensor’s decentralized AI platform. On the flip side, having a large amount of TAO controlled by one company could lead to more centralized control over the network’s decisions. (TAO Synergies)
3. Dynamic TAO Upgrade Released (August 29, 2025)
What happened: Bittensor updated its system to replace fixed token rewards with a new model where rewards depend on how well different parts of the network perform. Subnets that perform better now earn more TAO, while those that don’t perform as well receive fewer rewards.
Why it matters: This change encourages higher quality AI development, which is a positive step. However, smaller or newer subnets might find it harder to compete, possibly leading to a concentration of influence among the top performers. (Bitget)
Conclusion
Bittensor is attracting more institutional interest through products like ETPs and significant holdings by Nasdaq-listed firms, while also improving its reward system to focus on AI usefulness. With the first TAO token halving scheduled for December 2025, the big question is whether decentralized AI can deliver enough value to overcome its technical challenges.
What is expected in the development of TAO?
Bittensor is making steady progress with these key developments:
- First TAO Halving (December 12, 2025) – The daily creation of new TAO coins will be cut in half, reducing the overall supply.
- Subnet Expansion (2025–2026) – Growth of specialized AI networks within Bittensor, focusing on areas like computing power, AI reasoning, and governance.
- Institutional Adoption (Ongoing) – Public companies such as TAO Synergies and xTAO are buying and holding TAO as part of their investment strategies.
Deep Dive
1. First TAO Halving (December 12, 2025)
What’s happening:
Bittensor will reduce the number of new TAO coins created each day from 7,200 to 3,600. This is similar to Bitcoin’s “halving” events, which happen every four years to limit supply (KoinSaati). The next halving after this one is expected in 2029.
Why it matters:
This reduction in new TAO coins is generally positive (“bullish”) because it makes TAO more scarce, which can increase its value if demand stays strong. However, miners who earn TAO for supporting the network might earn less, which could lead some to sell their coins quickly, causing short-term price pressure.
2. Subnet Expansion (2025–2026)
What’s happening:
Bittensor is growing its network of specialized AI subnets—these are smaller, focused groups within the larger network that provide specific AI services. Examples include SN63, which focuses on quantum AI, and SN51, which offers decentralized computing power. These subnets compete for TAO rewards.
Why it matters:
This expansion is positive because it increases the usefulness of Bittensor by attracting more developers and businesses. However, if too many subnets appear too quickly without maintaining quality, it could lead to fragmentation and weaken the overall network.
3. Institutional Adoption (Ongoing)
What’s happening:
Companies like TAO Synergies (listed on Nasdaq) and xTAO currently hold large amounts of TAO—over 40,000 coins each, worth around $15–16 million. They stake their TAO to earn about a 10% annual return and are investing in building infrastructure to support the network (CoinMarketCap).
Why it matters:
Institutional buying is a strong sign of confidence in TAO’s future and reduces the number of coins available on the market, which can support price growth. On the downside, if too much TAO is controlled by a few entities, it could concentrate decision-making power and affect the network’s decentralized nature.
Conclusion
Bittensor’s future depends on balancing three main factors: limiting supply through halving, expanding its practical uses with subnets, and gaining trust from institutional investors. The upcoming halving will test TAO’s ability to hold value as a scarce digital asset. Meanwhile, subnet growth needs to focus on quality to avoid fragmentation. As Bittensor scales, it will be interesting to see how decentralized AI networks compete with large, centralized tech companies.
What updates are there in the TAO code base?
Bittensor’s software is evolving to improve decentralized AI infrastructure.
- Dynamic TAO Upgrade (February 2025) – Changed how rewards are given, now based on subnet performance.
- Subnet SDK Launch (2025) – Made it easier for developers to create and manage AI subnets.
- EVM Compatibility Rollout (2024–2025) – Allowed AI models to work across Ethereum-compatible blockchains.
Deep Dive
1. Dynamic TAO Upgrade (February 2025)
Overview:
Instead of fixed token rewards, Bittensor now rewards based on how well each subnet performs. This encourages better AI contributions.
Validators can now stake TAO tokens based on how useful a subnet is. Using Uniswap V3’s concentrated liquidity feature helps make staking more flexible and reduces costs when moving large amounts of TAO.
What this means:
This is positive for TAO because it ties rewards to real network value, which could increase demand for high-performing subnets. (Source)
2. Subnet SDK Launch (2025)
Overview:
Bittensor introduced a software development kit (SDK) that helps developers build and manage AI subnets more easily.
The SDK includes ready-made templates for common AI tasks like natural language processing and image generation, plus automatic reward distribution. Over 120 new subnets launched within three months after the SDK release.
What this means:
This is neutral for TAO. It encourages more variety in the network but could lead to lower-quality subnets if not managed carefully.
3. EVM Compatibility Rollout (2024–2025)
Overview:
Bittensor upgraded to work with Ethereum Virtual Machine (EVM) compatible blockchains, allowing AI models and decentralized apps (dApps) to operate across multiple chains.
This means subnet outputs can now connect with Ethereum-based decentralized finance (DeFi) platforms and data marketplaces. Early users include synthetic data providers and AI-driven prediction markets.
What this means:
This is positive for TAO because it opens up new opportunities and liquidity from Ethereum’s large ecosystem.
Conclusion
Bittensor’s updates focus on making decentralized AI more scalable and interoperable across blockchains. The Dynamic TAO upgrade and EVM compatibility help position TAO as a key link between AI innovation and blockchain technology. It will be interesting to see how subnet competition develops as the December 2025 halving approaches.