Why did the price of TAO go up?

Bittensor (TAO) increased by 4.84% in the last 24 hours, outperforming the overall crypto market, which dropped by 0.32%. The main reasons for this rise include:

1. TAO Synergies raised $11 million – This shows strong confidence from big investors in Bittensor’s AI platform.
2. Growing interest in AI tokens – The AI sector gained momentum after a big surge in altcoins led by Synthetix.
3. Technical breakout – TAO’s price bounced back above key support levels, with positive signals from technical indicators like RSI and MACD.

Deep Dive

1. Institutional Support for Bittensor (Positive Sign)

What happened: On October 13, 2025, TAO Synergies, a company listed on Nasdaq, raised $11 million in a Series E funding round. Notable investors included Digital Currency Group (DCG) and crypto expert James Altucher. TAO Synergies owns 42,111 TAO tokens, worth about $18.2 million, and stakes them to earn rewards on the network (The Block).

Why it matters: When public companies buy and hold TAO tokens, it reduces the number of tokens available for trading. This supports the value of TAO and shows confidence in Bittensor’s decentralized AI technology. This strategy is similar to how MicroStrategy invests in Bitcoin, creating steady demand.

What to watch: The rate at which TAO Synergies continues to acquire TAO tokens after this funding round, currently about $1.8 million per day.

2. AI Token Sector Gains (Positive Sign)

What happened: TAO’s price rose along with other AI-related tokens like Render, which went up 21%. This followed a 130% surge in Synthetix, sparking a wave of buying in altcoins. Bittensor’s network is growing, with 118 active sub-networks, and a planned halving event in December is increasing interest (Yahoo Finance).

Why it matters: Investors are focusing on tokens that have real use in AI and computing infrastructure. TAO offers a 10% staking yield and recently launched a software development kit (SDK) for subnets, making it an attractive option during times when investors are willing to take more risks.

3. Technical Analysis (Mixed Signals)

What happened: TAO’s price moved above its 30-day simple moving average (SMA) of $330 and stayed above the 23.6% Fibonacci retracement level at $382. The Relative Strength Index (RSI) is at 70.54, close to overbought levels, and the MACD indicator shows positive momentum.

What it means: Short-term traders might sell near $450, where resistance is expected. However, if TAO stays above $424, it could aim for $528. If the price falls below $340, the recent breakout might fail.

Conclusion

TAO’s recent price increase is driven by strong sector momentum, less selling pressure due to treasury strategies, and a technical rebound. While there is a risk of the price pulling back, the strong AI market interest and upcoming halving event suggest that dips could be buying opportunities.

Key point to watch: Whether TAO can maintain support at $424 ahead of Grayscale’s Bittensor Trust decision on October 15.

What could affect the price of TAO?

Bittensor’s price depends on how widely AI is adopted, changes in token supply, and overall market mood.

1. Institutional Buying – Big players like TAO Synergies and DCG are buying up TAO, showing confidence.
2. Token Unlock Risks – Over $1 billion worth of TAO will become available on October 13, testing how the market handles it.
3. Halving Effects – After 2025, daily TAO rewards drop to 3,600, reducing new supply.

Deep Dive

1. Institutional Demand & Treasury Strategies (Positive for Price)

Overview: Companies like TAO Synergies hold more than 42,111 TAO tokens (worth over $18.2 million) and are staking them to earn rewards. DCG invested $10 million through Yuma Asset Management, showing strong belief in Bittensor’s decentralized AI vision.
What this means: When big firms keep buying and holding TAO, it can lower the number of tokens available for trading and help stabilize prices. But if these holders suddenly sell, it could cause price swings.

2. October Token Unlock & Inflation Pressure (Potential Downside)

Overview: On October 13, 2025, more than $1 billion in TAO tokens will be unlocked, releasing coins that were previously locked up by early miners and validators. Currently, about 7,200 TAO tokens are created daily, which will drop to 3,600 after the halving event.
What this means: There might be selling pressure if those who receive unlocked tokens decide to sell. However, the halving in 2026 will slow down new token creation, which could help balance this out. Keep an eye on how many tokens flow into exchanges after the unlock (The Block).

3. AI Sector Momentum & Competition (Mixed Outlook)

Overview: TAO’s price jumped 30% recently, riding a wave of gains in AI-related tokens like Render (+21%) and Synthetix (+130%). Meanwhile, competitors such as Akash Network are shifting their focus, and the success of Bittensor depends on growing its subnet ecosystem.
What this means: Bittensor’s position as a leader in decentralized AI infrastructure could attract developers and users. But if it can’t grow its subnets or keep validators engaged, competitors might take market share.

Conclusion

TAO’s price faces short-term uncertainty due to the October token unlock but benefits from shrinking supply and strong institutional interest. The big question is: Can Bittensor’s subnet growth outpace inflation and keep its lead in AI? Watch validator numbers, subnet activity, and token flows to exchanges after the unlock.

What are people saying about TAO?

Bittensor’s TAO token is stirring up debate between excitement over the upcoming “halving” event and concerns about it being “overbought.” Here’s what’s trending:

1. Institutions are buying TAO – Public companies now hold over $30 million worth of TAO in their treasuries.
2. Price targets of $1,000 face correction warnings – Technical analysis is split around the key $500 resistance level.
3. Halving countdown is on – In 70 days, TAO’s new supply will be cut in half, sparking discussions about scarcity and value.

Deep Dive

1. @hayekai: TAO’s Q4 macro breakout looks promising

“TAO’s fundamentals lead price by multiples. Halving + subnet growth + Asian liquidity = $600–$1,150 target range”
– @hayekai (23K followers · 412K impressions · October 9, 2025, 2:39 PM UTC)
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What this means: This is a positive outlook for TAO. The analyst connects several factors—halving, network expansion, and increased market activity in Asia—that could push the price up by nearly three times. However, there are still risks if these plans don’t go as expected.

2. @getmasafi: Mixed but optimistic halving sentiment

“Masa AI data shows TAO halving optimism spiking despite dTAO weakness. Scarcity + liquidity rails = perfect storm”
– @getmasafi (8.1K followers · 189K impressions · July 31, 2025, 6:25 PM UTC)
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What this means: This is cautiously optimistic. While the halving in December 2025 could reduce the amount of TAO being sold, the network’s adoption (called subnet growth) needs to speed up to support this reduced supply.

3. TAO Synergies: Institutions ramp up buying

Nasdaq-listed TAO Synergies revealed on August 6, 2025, that it holds 42,111 TAO tokens (worth $17.8 million), bought at an average price of $334. Another competitor, xTAO, holds 41,538 TAO (about $16 million).
What this means: This is a bullish sign. Corporate treasuries now control nearly 0.8% of all TAO tokens available, which could create steady buying pressure. However, it also raises concerns about centralization.

Conclusion

The overall view is cautiously optimistic. The excitement around the halving and potential scarcity is balanced by technical resistance between $434 and $500. While big institutional bets support Bittensor’s vision of decentralized AI, there’s still a risk of a 30–50% price pullback if Bitcoin regains dominance. Keep an eye on the TAO/BTC trading ratio—if it breaks above 0.0012 (currently 0.00093), it could signal the start of a strong altcoin season.

What is the latest news about TAO?

Bittensor is managing a balance between growing corporate investment and a major token release. Here’s the latest update:

1. TAO Synergies Raises $11M (October 13, 2025) – A Nasdaq-listed company increases its stake in TAO tokens.
2. Grayscale Files for TAO Trust with SEC (October 13, 2025) – A move to make it easier for institutions to invest in TAO.
3. $1 Billion TAO Token Unlock (October 13, 2025) – The largest release of tokens so far tests the market’s ability to absorb new supply.

Deep Dive

1. TAO Synergies Raises $11M (October 13, 2025)

Overview:
TAO Synergies (Nasdaq: TAOX) raised $11 million by issuing convertible preferred stock. Key investors include Digital Currency Group (DCG) and James Altucher. The company now holds 42,111 TAO tokens, worth about $18.2 million, and is staking all of them to earn rewards on the Bittensor network. This makes TAO Synergies the largest public holder of TAO.

What this means:
This is a positive sign for TAO because it shows that institutional investors have confidence in Bittensor’s decentralized AI platform. More corporate staking can improve network security and reduce the number of tokens available for trading. However, there is a risk that if preferred shares convert to common stock, it could dilute existing shareholders. (The Block)

2. Grayscale Files for TAO Trust with SEC (October 13, 2025)

Overview:
Grayscale submitted an SEC Form 10 to create a Bittensor Trust. This filing aims to reduce the required holding period for TAO tokens from 12 months to 6 months. If approved, this would be the first SEC-registered product for TAO, similar to Grayscale’s Bitcoin ETF approach.

What this means:
This development is somewhat positive because clearer regulations could attract more conservative investors. However, the approval process may take time, and there could be questions about whether TAO is classified as a utility token or a security. (TokenPost)

3. $1 Billion TAO Token Unlock (October 13, 2025)

Overview:
Developers and early investors released over $1 billion worth of TAO tokens into circulation. This is the largest token unlock since Bittensor started. Interestingly, TAO’s price rose 23% that week, which goes against the usual trend where prices drop after big unlocks.

What this means:
In the short term, this could put downward pressure on the price as more tokens become available to sell. But the fact that the price didn’t drop much suggests strong demand. Over time, this token distribution may help decentralize control by spreading tokens to new holders. (News.Bit2Me)

Conclusion

Bittensor is currently facing a test of its market liquidity due to the large token unlock. At the same time, institutional interest is growing through TAO Synergies and Grayscale’s filings. The key question is whether demand from retail and corporate investors will keep up with the new supply or if the market will see increased volatility. Keep an eye on trading volumes and staking activity for signs of what’s next.

What is expected in the development of TAO?

Bittensor’s roadmap highlights key steps for growing its network and increasing adoption:

1. First TAO Halving (December 12, 2025) – Cuts daily TAO rewards in half, reducing supply and potentially increasing value.
2. Grayscale Trust OTC Listing (Q4 2025) – Plans to list Bittensor shares on the OTC market, aiming to attract institutional investors once approved by the SEC.
3. Subnet Ecosystem Expansion (Ongoing) – Continued growth of AI-focused subnetworks like Basilica (SN39).
4. EVM Compatibility Rollout (2025) – Enables AI models to work across different blockchain platforms.

Deep Dive

1. First TAO Halving (December 12, 2025)

What is it?
Bittensor will reduce the daily amount of TAO tokens created from 7,200 to 3,600. This “halving” happens every four years and is similar to Bitcoin’s approach to controlling supply. After reaching a total supply of 21 million TAO, miners will earn rewards mainly from transaction fees instead of new tokens (CoinSpeaker).

Why it matters:

• Positive: Less new TAO entering the market could increase the token’s value if demand stays strong.
• Challenges: Some subnetworks might struggle with fewer tokens available for incentives, which could impact liquidity.

2. Grayscale Trust OTC Listing (Q4 2025)

What is it?
Grayscale is applying to list its Bittensor Trust shares on the OTC Markets, pending approval from the U.S. Securities and Exchange Commission (SEC). If approved, TAO would become the first decentralized AI token offered as a regulated exchange-traded product (ETP) (TokenPost).

Why it matters:

• Positive: This could open the door for more institutional investors to buy TAO, following Grayscale’s success with other crypto trusts like GBTC.
• Risks: Regulatory hurdles or delays could slow down or block this listing, affecting market sentiment.

3. Subnet Ecosystem Expansion (Ongoing)

What is it?
Bittensor supports “subnets,” which are smaller, specialized AI networks within the larger system. Basilica (SN39) is one example, showing strong growth this year (+655%). Developers can use the subnet software development kit (SDK) to create new AI networks, and upcoming Ethereum Virtual Machine (EVM) compatibility will allow these AI models to interact with other blockchains (The Defiant).

Why it matters:

• Positive: More subnets mean more ways to use TAO beyond just mining and staking, increasing its utility.
• Challenges: Too many subnets or lower-quality projects could reduce overall incentives and value.

4. EVM Compatibility Rollout (2025)

What is it?
Bittensor is integrating with the Ethereum Virtual Machine (EVM), the technology behind Ethereum and other blockchains like Polygon. This allows AI models on Bittensor to work seamlessly across multiple blockchain platforms, connecting decentralized AI with decentralized finance (DeFi) applications (KoinSaati).

Why it matters:

• Positive: This expands opportunities for developers to build AI-powered decentralized apps (dApps) that can reach a wider audience.
• Challenges: Technical complexity could slow down how quickly this integration is adopted.

Conclusion

Bittensor’s roadmap focuses on balancing token supply control (halving), attracting institutional investors (Grayscale listing), and growing its AI ecosystem (subnets and EVM compatibility). The upcoming halving and regulatory approvals are key events to watch in the near future.

How will TAO’s decentralized AI model stand up against centralized AI platforms as more users join?

What updates are there in the TAO code base?

Bittensor’s software has been updated to improve its decentralized AI network.

1. Dynamic TAO Upgrade (Feb 2025) – Changed how rewards are given, focusing on subnet performance.
2. EVM Compatibility Rollout (2024–2025) – Made it possible for AI models to work across different blockchain networks.
3. Subnet SDK Launch (2025) – Provided developers with easier tools to create AI services.

Deep Dive

1. Dynamic TAO Upgrade (Feb 2025)

Overview: Instead of fixed token rewards, Bittensor now rewards subnets based on how well they perform. Validators can stake TAO tokens on subnets that show real AI value, like better accuracy or efficiency.

What this means: This change encourages higher quality AI contributions, which is good news for TAO. It could attract more specialized AI subnets to the network. (Source)

2. EVM Compatibility Rollout (2024–2025)

Overview: Bittensor added support for the Ethereum Virtual Machine (EVM), allowing AI models and decentralized apps (dApps) to run on popular blockchains like Ethereum and Polygon.

What this means: In the short term, this may not impact TAO much, as it depends on how developers use it. But in the long run, it opens up new opportunities by connecting decentralized AI with existing blockchain ecosystems. (Source)

3. Subnet SDK Launch (2025)

Overview: Bittensor released a software development kit (SDK) to help developers build and manage AI subnets more easily. It includes ready-made templates for tasks like natural language processing and image generation, plus tools to monitor subnet performance automatically.

What this means: This makes it easier for developers to create AI services on Bittensor, which should help the network grow and benefit TAO holders. (Source)

Conclusion

Bittensor’s updates focus on rewarding quality AI work, enabling cross-chain use, and making development simpler. With the first TAO halving coming up on December 12, 2025, it will be important to see if these improvements keep miners and validators engaged despite lower token emissions.