Why did the price of TAO go up?

Bittensor (TAO) increased by 0.51% in the last 24 hours, showing a small gain amid the ups and downs of the broader crypto market. While short-term technical signals suggest some stabilization, this movement also reflects growing interest in AI-focused tokens and important developments within the Bittensor ecosystem.

1. Growing Interest in AI – More institutions are focusing on decentralized AI projects.
2. Exchange Support – Coinbase recently added TAO as collateral for perpetual futures (Sept 5).
3. Upcoming Halving – The first TAO halving, expected around Dec 12, 2025, may reduce supply and impact price.

Deep Dive

1. Growing Interest in AI (Positive for TAO)

Overview: Bittensor’s decentralized machine learning network is gaining attention as AI continues to be a leading area in crypto. For example, projects like Taoshi’s 0xMarkets forex exchange (Yahoo Finance) use Bittensor subnets, showing that TAO has practical applications beyond just trading.

What this means: Real-world uses of AI strengthen TAO’s value. The token has a fixed maximum supply of 21 million, and its staking system helps create scarcity. Additionally, companies listed on Nasdaq, such as TAO Synergies and xTAO, are accumulating TAO, which signals growing institutional trust.

What to watch: Keep an eye on how Bittensor subnets are adopted in areas like financial modeling and quantum AI, as well as investment flows into AI-focused ETFs.

2. Technical Signals Show Mixed Outlook

Overview: TAO’s Relative Strength Index (RSI14) is at 34.15, close to oversold territory, which can indicate that selling pressure is easing. However, the current price ($302) is still below key moving averages like the 30-day simple moving average (SMA30: $332.83), showing ongoing bearish pressure.

What this means: The recent 24-hour price increase might be due to short-term bargain hunting rather than a clear trend reversal. For a stronger bullish signal, TAO needs to break above the 38.2% Fibonacci retracement level at $341.55 and hold there.

3. Halving Event Could Boost Price (Positive Outlook)

Overview: TAO’s first halving is expected in about 83 days from Sept 26, 2025. This event will cut daily token emissions from 7,200 TAO to 3,600, reducing the amount of new tokens miners sell.

What this means: Historically, halving events reduce supply and can lead to price increases. Since TAO is down nearly 42% year-over-year, this halving could change market sentiment, especially if AI adoption continues to grow.

Conclusion

TAO’s recent small rebound reflects a combination of oversold conditions, positive momentum in the AI sector, and anticipation of the upcoming halving. However, resistance levels between $322 and $340 remain important to watch.

Key points to monitor: Will TAO maintain support above $300 before the halving? Will increased adoption of Bittensor subnets drive sustained demand? Tracking validator growth and subnet activity will provide important clues about the token’s future direction.

What could affect the price of TAO?

Bittensor’s price is currently caught between positive factors that could boost it and risks affecting the broader market.

1. Halving (Dec 2025) – The daily release of TAO coins will be cut in half, potentially reducing supply and increasing value.
2. Institutional Accumulation – Companies listed on Nasdaq hold about 83,000 TAO coins, but there is still a risk they might sell.
3. Technical Resistance – The price is struggling to rise above $366, and it could either break through this level or drop soon.

Deep Dive

1. Halving & Supply Dynamics (Positive Outlook)

Overview:
Bittensor is expected to experience its first halving event around December 11, 2025. This means the number of new TAO coins created daily will be cut by 50%. When fewer coins enter the market, supply tightens, which often leads to price increases if demand stays the same or grows. This halving is seen as a strong positive factor for Bittensor’s price over the long term.

What are people saying about TAO?

Bittensor’s TAO token is showing mixed signals, swinging between optimistic bets on its growing ecosystem and challenges in its price movement. Here’s the latest:

1. Institutions are accumulating TAO – xTAO holds 41,538 tokens worth about $16 million to support Bittensor’s decentralized AI network.
2. Price hitting resistance levels – TAO keeps struggling to break above the $380–$434 range, raising concerns among analysts.
3. Halving event coming up – The first TAO halving in December 2025 is drawing comparisons to Bitcoin’s past halvings, stirring excitement.

In-Depth Look

1. Ecosystem Growth Signals Optimism

@taocat_agent says:
“Bittensor is a thriving ecosystem where innovation reigns free... £2.5bn market cap speaks volumes.”
– @taocat_agent (X followers · Sept 20, 2025, 5:23 PM UTC)
See original tweet
What this means: This is a positive sign for TAO. The tweet highlights how Bittensor’s decentralized AI network is gaining momentum, with validators (network participants who help secure and run it) adding value.

2. Price Resistance Points to Short-Term Challenges

According to a CoinMarketCap post, TAO has repeatedly failed to stay above its 20-day simple moving average (SMA), which is currently between $322 and $346. Analysts say this suggests a “short-term bearish bias” until TAO can break out decisively.
– CoinMarketCap Community (July 9, 2025, 3:26 PM UTC)
What this means: In simpler terms, TAO’s price is struggling to maintain upward momentum, signaling potential weakness in the near future.

3. Halving Event Sparks Mixed Reactions

@getmasafi comments:
“1st $TAO halving (Dec 2025) could mirror Bitcoin’s 2012 trajectory... decentralized AI moves at light speed.”
– @getmasafi (July 28, 2025, 2:10 PM UTC)
See original tweet
What this means: Halving events reduce the rate at which new tokens are created, often increasing scarcity and potentially price. However, since TAO’s supply decreases by about 45% annually, expectations are tempered, leading to mixed feelings about the impact.

Conclusion

The outlook for TAO is mixed. On one hand, institutional investors are building up significant holdings (xTAO’s $16 million treasury), showing confidence in Bittensor’s decentralized AI. On the other, technical indicators reveal resistance around $400, with the token struggling to break higher. Keep an eye on the 20-day SMA ($322) for signs of a breakout or breakdown, and watch how validator participation evolves after the halving. The big question remains: can Bittensor’s decentralized AI growth overcome its price hurdles?

What is the latest news about TAO?

Bittensor is making progress with institutional adoption and managing supply changes, even as it faces competition. Here are the key updates:

1. Coinbase Adds TAO as Collateral (September 5, 2025) – TAO can now be used for perpetual futures trading, improving liquidity.
2. Halving Coming in 90 Days (September 8, 2025) – Daily TAO rewards will be cut in half, reducing the amount of new tokens entering the market.
3. Institutions Increasing TAO Holdings (July–August 2025) – Companies like xTAO and TAO Synergies have acquired over $30 million worth of TAO.

In-Depth Look

1. Coinbase Adds TAO as Collateral (September 5, 2025)

What happened:
Coinbase Advanced and Coinbase International now allow TAO to be used as collateral for perpetual futures trading. This means traders outside the U.S. can use TAO to take leveraged positions—up to 50 times their investment. TAO joins other popular tokens like PEPE and BONK in this offering.

Why it matters:
This move shows Coinbase’s confidence in TAO’s liquidity and trading potential, which is a positive sign for the token. However, trading with derivatives like futures can also lead to bigger price swings during volatile market conditions. (Cryptotimes)

2. Halving Coming in 90 Days (September 8, 2025)

What happened:
On December 11, 2025, Bittensor will undergo its first halving event. This will reduce the daily amount of new TAO tokens created from 7,200 to 3,600. Rewards for subnets (called Alpha emissions) will also decrease from 14,400 to 10,800 tokens per day. This cut is expected to lower daily sell pressure by about $1.15 million.

Why it matters:
Halving events typically reduce the supply of new tokens, which can support higher prices if demand stays steady. However, fewer Alpha tokens might make it harder for new subnets to attract liquidity and grow. While Bitcoin’s halvings have historically led to price rallies, TAO’s unique system means the outcome is less certain. (Coinspeaker)

3. Institutions Increasing TAO Holdings (July–August 2025)

What happened:
Public companies like xTAO and TAO Synergies have been buying and holding large amounts of TAO—41,538 TAO (~$16 million) and 29,899 TAO (~$10 million), respectively. They are staking these tokens to earn about 10% annual returns and aim to influence Bittensor’s governance and infrastructure development.

Why it matters:
Institutional staking reduces the number of tokens available for trading, which can support price stability and growth. It also reinforces TAO’s position as a decentralized AI network. However, if too much TAO is held by a few entities, it could lead to centralization risks. (The Block)

Conclusion

Bittensor’s future depends on balancing the reduced token supply from the halving with growing institutional interest and subnet development. Coinbase’s support and corporate treasury investments show confidence, but competition from AI projects like Worldcoin (WLD) presents challenges. The key question is whether lower emissions will be enough to support subnet liquidity and overall network growth after the halving.

What is expected in the development of TAO?

Bittensor’s roadmap focuses on upgrading its technology while growing its ecosystem.

1. First Halving Event (December 12, 2025) – Daily TAO rewards will be cut in half, dropping from 7,200 to 3,600.
2. OSS-Style Subnet Forking (Q4 2025) – Allows AI subnets to be copied, merged, or forked, similar to open-source software.
3. Subnet Growth & Institutional Adoption – Expanding decentralized AI markets and attracting more corporate partners.

Deep Dive

1. First Halving Event (December 12, 2025)

What is it?
Bittensor will reduce the number of new TAO coins created daily by 50%, from 7,200 to 3,600. This is similar to Bitcoin’s approach to making its coins scarcer over time. This change is built into the system and happens every four years (@getmasafi).

Why it matters:

• Positive: With fewer new TAO coins entering the market, the value could go up if demand stays the same or grows, especially since big investors and institutions are accumulating TAO.
• Negative: Miners who earn TAO as rewards might find it less profitable, which could lead to fewer participants in the network in the short term.

2. OSS-Style Subnet Forking (Q4 2025)

What is it?
This update will let AI subnets—specialized parts of the network—be copied, merged, or forked. Think of it like how open-source software projects can be duplicated and modified by different developers. This idea comes from community feedback to make subnets more flexible (@JosephJacks_).

Why it matters:

• Positive: It encourages innovation by allowing developers to build on existing AI subnet work, which could bring more projects and ideas to the network.
• Risk: There’s a chance that splitting subnets could divide network activity and rewards, which might weaken incentives for some participants.

3. Subnet Growth & Institutional Adoption

What is it?
Bittensor plans to increase the number of subnets (currently over 118) and strengthen partnerships with institutions. Recent developments, like the listing of xTAO on the TSX Venture Exchange and TAO treasury strategies, show growing corporate interest in decentralized AI.

Why it matters:

• Positive: More diverse subnets—covering areas like sports predictions and media creation—can increase real-world uses for TAO, boosting demand.
• Neutral: The success depends on how well these subnets perform and attract ongoing support from users and stakers.

Conclusion

Bittensor’s upcoming halving is a key event that could impact TAO’s value in the near term. Meanwhile, making subnets more modular and attracting institutional partners shape its long-term growth. The big question is whether these changes will help TAO become the “Bitcoin of AI” or if challenges will arise as the network grows and subnets multiply.

What updates are there in the TAO code base?

Bittensor's latest software updates improve decentralized AI by upgrading key parts of its system.

1. Dynamic TAO Upgrade (February 2025) – Changed token rewards to depend on how well different network sections perform.
2. EVM Compatibility Rollout (2025) – Made Bittensor work with Ethereum-based blockchains for better AI model sharing.
3. Uniswap V3 Liquidity Integration (2025) – Improved staking options using advanced liquidity pools.

Deep Dive

1. Dynamic TAO Upgrade (February 2025)

Overview: Instead of giving out a fixed amount of tokens, rewards now depend on how well each subnet (a smaller part of the network) performs. Staking is adjusted based on subnet importance.
This means that subnets providing better AI services earn more TAO tokens, while less active ones get fewer rewards. Validators (network participants who help run the system) need to adjust their stakes to match these changes.

What this means: This is good news for TAO because it encourages better AI services, which can increase the network’s overall value as competition drives innovation. (Source)

2. EVM Compatibility Rollout (2025)

Overview: Bittensor now supports the Ethereum Virtual Machine (EVM), which means its AI models and decentralized apps (dApps) can work on popular Ethereum-based blockchains like Ethereum and Polygon.
This upgrade allows Bittensor’s AI tools to connect with a wider range of decentralized finance (DeFi) platforms, enabling new uses like AI-powered trading bots or cross-chain data analysis.

What this means: In the short term, this may not change much for TAO until more developers start using it. But in the long run, it positions Bittensor as a key player linking AI with multiple blockchain networks. (Source)

3. Uniswap V3 Liquidity Integration (2025)

Overview: Bittensor integrated Uniswap V3’s advanced liquidity pools to improve how TAO tokens are staked. Validators can now stake tokens within specific price ranges, making staking more efficient and predictable.
This reduces the risk of price changes (slippage) and helps validators manage their investments better.

What this means: This is positive for TAO because it makes it easier and more profitable for smaller validators to participate, which can help make the network more decentralized. (Source)

Conclusion

Bittensor’s updates focus on rewarding high-quality AI services and improving compatibility with other blockchains. By encouraging validators to support the best-performing subnets and making staking more accessible, these changes could strengthen TAO’s role in combining AI with blockchain technology. How these improvements will shape the future of decentralized AI remains an exciting question.