Bittensor’s TAO Coin Skyrockets as Innovative Developments Attract Attention

The TAO coin, the mainnet asset of the altcoin Bittensor, has caught the eye of cryptocurrency enthusiasts by rising 60% over the past month. After Barry Silbert’s comment suggesting it might be the “next Bitcoin $94,484 ,” institutional interest in a TAO-focused liquid fund increased rapidly. The Dynamic TAO (dTao) update and EVM compatibility have introduced ease of development and new revenue models. TAO’s listing on Coinbase in February has also expanded its visibility and liquidity, sparking further interest in the asset.

Investor Interest Shifts Toward TAO Coin

The recent momentum is driven by the strengthening narrative of “decentralized artificial intelligence,” where AI intersects with Blockchain. Bittensor, with its fixed supply of 21 million coins and block reward halving mechanism, is compared to Bitcoin. Yet, investors mostly value the TAO coin as an ecosystem token.

Joscha Kuplewatzky, executive at Wintermute Ventures, highlighted the resurgence of the AI-Blockchain narrative at Token2049 Dubai, with TAO providing “index-like representation.” Joseph Jacks, founder of OSS Capital, stated that Bittensor is doing for capitalism what Bitcoin did for fiat money, emphasizing the altcoin’s potential to create value without capital raising.

Jacks’ company, Latent Holdings, is recognized for contributing tools like the metric tracking TAO.app and TAO Hash, which aims to distribute Bitcoin hashrate within the ecosystem.

Bittensor’s Fate Hinges on Subnet Utilization

Experts believe Bittensor’s fate depends on whether its subnets can achieve real-world application. Tekin Salimi, the founder of dao5, noted the need for subnets to produce sustainable profits over TAO inflation, while major TAO coin holder Robert Myers warned of potential performance loss if miner incentives decrease.

Despite projects like Chutes processing extensive data and demonstrating potential, developer quality must continue to improve. The high motivation felt at Austin’s first Bittensor event, Endgame, has already accelerated funding into subnet projects.

Unsupervised Capital aims to grow its TAO position by accumulating early-stage subnet coins in search of “asymmetric returns.” The crucial threshold lies in these subnets achieving product-market fit and creating lasting revenue.

The TAO coin trades at $358.14, having risen 3.52% in the last 24 hours. While the past week shows a 3.46% decline, the last 30 days record a notable 65.10% increase.