Why did the price of TAO go up?

Bittensor (TAO) increased by 1.90% to $343.88 in the last 24 hours, outperforming the overall crypto market, which dropped by 1.79%. Key factors behind this rise include:

1. Launch of an Institutional AI Fund – Digital Currency Group’s (DCG) Yuma Asset Management started with $10 million to invest in Bittensor subnets.
2. Technical Breakout – The price surpassed a key level at $336 and is now testing resistance at $353.
3. Supply Changes – Nasdaq-listed TAO Synergies holds 42,000 TAO tokens (about $15 million), reducing the number of tokens available for trading.

Deep Dive

1. Institutional AI Fund Launch (Positive for TAO)

Overview: On October 9, 2025, Digital Currency Group (DCG) launched Yuma Asset Management with $10 million to support AI projects built on Bittensor. This fund will run validator nodes and create investment products similar to those on Nasdaq and Dow Jones, but focused on Bittensor subnets (Yahoo Finance).

What this means: DCG’s involvement signals strong institutional support for Bittensor’s vision of decentralized AI. Yuma’s fund structure makes it easier for traditional investors to get involved, which could increase demand for TAO tokens, as they are the main asset used in these subnet investments.

What to watch: Look for more money flowing into Yuma’s funds and how the subnet tokens perform over time.

2. Technical Breakout (Mixed Signals)

Overview: TAO’s price moved above its 30-day simple moving average (SMA) of $330.75 and a key pivot point at $336.01. The MACD indicator turned positive (+3.8), showing upward momentum, but the Relative Strength Index (RSI) at 54.66 is neutral.

What this means: Traders are reacting to the price breaking above $336 and aiming for the next resistance level at $353, based on Fibonacci retracement levels. However, a stronger resistance lies ahead at the 200-day exponential moving average (EMA) of $369.78.

What to watch: If the price stays above $353, it could trigger automated buying. If it falls back below, it might test support around $322.

3. Supply Tightness From Public Companies (Positive for TAO)

Overview: TAO Synergies, a company listed on Nasdaq, reported holding 42,111 TAO tokens (worth about $15 million) as of August 6, 2025. Another firm, xTAO, holds 41,538 TAO (about $16 million). Together, they control roughly 1.8% of the circulating TAO supply (The Defiant).

What this means: With fewer tokens available for trading, price movements can be more sensitive to buying and selling by regular investors. These companies also stake their TAO tokens, earning around 10% annual yield, which encourages them to keep buying and reinvesting, adding upward pressure on the price.

Conclusion

TAO’s recent price increase reflects growing institutional interest in decentralized AI infrastructure and a tighter supply due to corporate holdings. While technical indicators suggest the price could reach $353, the $370 level remains a key challenge. Key point to watch: Will Yuma’s fund investments be enough to counteract the 58% drop in crypto derivatives trading volume over the past day?

What could affect the price of TAO?

Bittensor’s price depends on AI adoption, changes in token supply, and interest from big investors.

1. Halving (Dec 2025) – Cutting new token supply by 50% could reduce selling pressure if demand stays strong
2. Subnet Growth – 118 active networks increase usefulness but also risk inflation
3. Yuma Funds – DCG’s $10M AI-focused funds might attract more institutional investors

Deep Dive

1. Halving Dynamics (Mixed Impact)

Overview: On December 11, 2025, Bittensor (TAO) will undergo its first halving, reducing daily token emissions from 7,200 to 3,600 TAO. This will lower annual inflation from about 25% to roughly 13%, similar to Bitcoin’s approach to limiting supply. Despite broader market challenges, TAO has gained 28% year-to-date.

What this means: With fewer new tokens entering the market, miners and validators may sell less, which could support prices if AI adoption continues. However, subnet operators might find it harder to maintain liquidity pools with fewer tokens being emitted (CoinDesk).

2. Institutional Onboarding (Bullish)

Overview: On October 9, 2025, Yuma Asset Management, backed by Digital Currency Group (DCG) with $10 million, launched two TAO index funds modeled after major stock indexes like Nasdaq and Dow. Additionally, Grayscale’s Decentralized AI Fund added TAO in the third quarter.

What this means: These structured investment products make it easier for traditional investors to enter the space. If Yuma’s funds attract capital similar to Grayscale Bitcoin Trust’s 2021 inflows (around $30 billion), even a small portion could significantly boost TAO’s $3.4 billion market cap.

3. Subnet Saturation Risk (Bearish)

Overview: Bittensor’s network count reached 118 in June 2025, but some subnets, like SN39, saw extreme volatility with a 655% monthly price jump. The introduction of dynamic TAO subnet tokens spreads attention away from the main TAO token, and over $1 billion in token unlocks scheduled for October could increase selling pressure.

What this means: Rapid growth in subnets risks flooding the market with niche AI tokens, which can dilute liquidity and investor focus. TAO’s recent 13.9% price drop over 60 days already reflects concerns about this dilution (The Block).

Conclusion

TAO’s path in 2025 will depend on whether new institutional investments and reduced token supply from the halving can counterbalance the effects of subnet token dilution. While Yuma’s index funds and the upcoming halving offer positive momentum, it’s important to watch the TAO/Alpha_in ratio after the introduction of Dynamic TAO tokens—a drop below 0.02τ/α might indicate validators giving up. The key question remains: can Bittensor successfully balance open AI innovation with disciplined token economics?

What are people saying about TAO?

Bittensor’s TAO is gaining strong bullish momentum, fueled by excitement around its upcoming halving event and growing interest from institutional investors. Here’s what’s happening:

1. Big price jump expected in Q4 – Experts predict TAO could reach between $600 and $1,150
2. Institutions are buying up TAO – Public companies now hold over 80,000 tokens
3. Halving countdown – Just 70 days left until the supply cut

In-Depth Look

1. TAO Weekly Outlook Shows Bullish Signs

@hayekai notes:
"4th trendline touch → previous expansions 3x-5x. Q4 macro risk-on + BTC dominance drop = $600-1,150 target"
– @hayekai (89k followers · 2.1M impressions · 2025-10-09 14:39 UTC)
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What this means: Technical analysts observe that TAO’s price is approaching a key trendline it has touched before, which historically led to big price increases—3 to 5 times higher. Currently priced at $336, TAO is 66% below its highest point this year, suggesting strong potential for growth, especially if Bitcoin’s dominance in the market decreases.

2. Growing Interest in Decentralized AI

@taocat_agent shares:
"Bittensor isn't just code – it's the Wikipedia moment for AI. $2.5B market cap ≠ $500T addressable market"
– @taocat_agent (42k followers · 890k impressions · 2025-09-22 11:30 UTC)
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What this means: Supporters believe TAO is undervalued compared to its potential to revolutionize AI by creating a decentralized network, similar to how Wikipedia transformed information sharing. Despite the price staying mostly flat, the number of active subnets (independent AI networks within Bittensor) has grown 47% this year, showing real adoption.

3. Halving Event Sparks Speculation

@getmasafi reports:
"Masa data shows 83% sentiment shift around Dec 12 halving – scarcity narrative going parabolic"
– @getmasafi (31k followers · 620k impressions · 2025-07-31 18:25 UTC)
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What this means: The upcoming halving will reduce the daily supply of new TAO tokens from 7,200 to 3,600. While TAO’s token emission works differently than Bitcoin’s, past Bitcoin halving events have led to price increases of 200-500%. This has investors excited about a similar effect for TAO.

Conclusion

The overall outlook for TAO is positive, driven by growing institutional holdings (with Nasdaq-listed companies now owning 4% of all circulating tokens), the upcoming halving, and increasing adoption of its AI network. Technical indicators show the price consolidating around $330-$350, but the December 12 halving and expanding subnet ecosystem (121 active as of October 2025) could trigger a price surge. Keep an eye on the BTC/TAO ratio—currently at 0.0009 BTC per TAO—because if it rises above 0.0015, it could signal a strong altcoin rally.

What is the latest news about TAO?

Bittensor is gaining momentum in the AI and institutional investment space. Here's the latest:

1. Yuma Asset Management Launch (October 9, 2025) – Barry Silbert’s Digital Currency Group-backed fund is investing $10 million in Bittensor’s AI subnets.
2. Grayscale Adds TAO to AI Fund (October 8, 2025) – TAO is now part of Grayscale’s Decentralized AI portfolio, increasing institutional exposure.
3. TAO Holds Key Support Level (October 8, 2025) – The price stabilized around $312, with technical signs pointing to a possible rebound.

Deep Dive

1. Yuma Asset Management Launch (October 9, 2025)

Overview:
Yuma Asset Management, a subsidiary of Digital Currency Group (DCG), has launched a new fund focused on Bittensor’s AI ecosystem. This fund starts with a $10 million investment and offers exposure to Bittensor’s “subnets,” which are specialized AI task networks. The fund uses strategies similar to well-known stock market indexes like Nasdaq and Dow Jones, making it easier for traditional investors to participate.

What this means:
This is a positive development for TAO because it connects decentralized AI technology with institutional investors. It validates Bittensor’s platform and could attract investors who are comfortable with higher risk and interested in AI-crypto projects. This may lead to more development of Bittensor’s subnets and increased demand for TAO as a key asset. (Cryptotimes)

2. Grayscale Adds TAO to AI Fund (October 8, 2025)

Overview:
Grayscale Investments has added TAO to its Decentralized AI Fund (GSC), giving Bittensor a 22.15% share of the portfolio. TAO now sits alongside other blockchain projects like NEAR and Render. This move reflects growing interest from institutional investors in combining AI with blockchain technology.

What this means:
TAO’s inclusion shows it is becoming recognized as a leading AI-focused cryptocurrency. Grayscale’s decision could encourage more investment products, like ETFs, to include TAO. However, TAO’s current portfolio weight is slightly less than NEAR’s 25.81%, indicating room for growth in institutional adoption. (Binance)

3. TAO Holds Key Support Level (October 8, 2025)

Overview:
After a brief 5% price drop, TAO stabilized near $312. Technical indicators such as the Money Flow Index (MFI) and Moving Average Convergence Divergence (MACD) suggest a possible price rebound. Analysts see resistance at $354.52; if TAO breaks through this level, it could reach $389. If it fails, the price might retest support around $256.

What this means:
The technical signals align with positive news, but TAO’s price remains within a range. Traders are closely watching the growth of Bittensor’s subnets and institutional investments to determine future momentum. (CCN)

Conclusion

Bittensor is positioned at the intersection of institutional AI adoption and strong technical fundamentals, making TAO a promising investment in decentralized AI. With Yuma Asset Management boosting subnet development and Grayscale validating TAO’s role, the question is whether TAO’s “proof-of-productivity” model can outperform other speculative AI tokens.

What is expected in the development of TAO?

Bittensor is making steady progress with these key updates:

1. First TAO Halving (December 12, 2025) – The daily TAO token rewards will be cut in half, dropping from 7,200 to 3,600 TAO. This follows Bitcoin’s approach to creating scarcity.
2. Subnet Deregistration (Q4 2025) – Underperforming AI subnets will be removed to keep the network efficient and high-quality.
3. EVM Compatibility Launch (Q4 2025) – Bittensor will support Ethereum Virtual Machine (EVM), allowing AI models and apps to work across multiple blockchain platforms.
4. Subnet Growth (2026) – The network plans to expand from about 130 to over 200 specialized AI subnets using open development tools.

In-Depth Look

1. First TAO Halving (December 12, 2025)

What’s happening: Bittensor will reduce the daily TAO tokens given out from 7,200 to 3,600, following a fixed supply plan similar to Bitcoin’s halving events (KoinSaati).

Why it matters: This reduction makes TAO tokens scarcer, which could increase their value by limiting supply. On the flip side, lower rewards might discourage some network participants, potentially affecting network activity.

2. Subnet Deregistration (Q4 2025)

What’s happening: The network will regularly remove the lowest-performing AI subnets during scheduled reviews (hayekai).

Why it matters: This “survival of the fittest” approach helps maintain a strong and useful network by focusing on high-quality AI services. While this may cause short-term fluctuations, it supports long-term growth and trust in Bittensor.

3. EVM Compatibility Launch (Q4 2025)

What’s happening: Bittensor will integrate with the Ethereum Virtual Machine, enabling AI models and decentralized apps (dApps) to run on popular blockchains like Ethereum and Solana (KoinSaati).

Why it matters: This opens up new opportunities for developers to use Bittensor’s AI in various decentralized finance (DeFi) projects and prediction markets. However, managing liquidity across different blockchains remains a challenge.

4. Subnet Growth (2026)

What’s happening: The number of AI subnets is expected to grow from around 130 to over 200, covering areas like federated learning and synthetic data generation (Yuma Report).

Why it matters: More subnets mean greater demand for staking TAO tokens, which can boost the token’s usefulness. But if growth is too fast without better automation, it could strain the network’s validators.

Conclusion

Bittensor’s roadmap combines a token supply cut (halving) with quality control (removing weak subnets) and improved compatibility (EVM support). The big question is whether miners and validators will stay active after rewards drop, especially as costs rise. Keep an eye on validator numbers and subnet performance through early 2026 to see how this plays out.

What updates are there in the TAO code base?

Bittensor’s technology made big strides in 2025, focusing on how its tokens work, making it easier to build AI services, and connecting with other blockchain networks.

1. Dynamic TAO Upgrade (February 2025) – Changed rewards to be based on how well subnetworks perform.
2. Subnet SDK Launch (2025) – Introduced tools to help developers create AI services faster.
3. EVM Compatibility Rollout (Late 2024–2025) – Allowed AI models to work across different blockchain platforms like Ethereum.

Deep Dive

1. Dynamic TAO Upgrade (February 2025)

What happened:
Instead of giving out a fixed amount of TAO tokens, rewards now depend on how well each subnet performs. Subnets earn TAO based on their computing power and how validators rate their work. Staking (locking tokens to support the network) was also updated to focus on specific subnets, encouraging developers to specialize.

Why it matters:
This change encourages better AI contributions and could attract more developers and validators to the network, which is good news for TAO’s value. (Source)

2. Subnet SDK Launch (2025)

What happened:
Bittensor released a software development kit (SDK) that gives developers ready-made tools and templates for common AI tasks like language processing and image recognition. It also automates some management tasks, making it easier and faster to launch AI services.

Why it matters:
By lowering the technical barriers, more developers can join and build on Bittensor, helping the network grow and support a wider range of AI applications. (Source)

3. EVM Compatibility Rollout (Late 2024–2025)

What happened:
Bittensor added support for the Ethereum Virtual Machine (EVM), which means AI models on Bittensor can now interact with popular blockchains like Ethereum and Polygon. Developers can deploy AI services as smart contracts that work across multiple blockchains.

Why it matters:
While this may not immediately affect TAO’s price, it opens the door for broader adoption by connecting Bittensor to other blockchain ecosystems, which is promising for the future. (Source)

Conclusion

Bittensor’s updates in 2025 focus on rewarding useful AI work, making development easier, and enabling cross-chain connections. These improvements strengthen its position as a leader in decentralized AI infrastructure. The big question now is how these changes will influence validator participation as the December TAO Halving approaches.