Bittensor (TAO) Becomes a Major Winner Amid the Rise of Narrative AI
2024-10-06Bittime - Bittensor (TAO) is now emerging as a leader in the artificial intelligence (AI) narrative and is the biggest winner in the short term. After the recent market downturn, the AI narrative made a quick comeback, and Bittensor saw a significant surge in its value.
Price Surge and Prominent Growth
In the past month, Bittensor has seen an increase of more than 100%, with its current trading price at $548.70, up from around $230 in early September.
Last month was TAO's most successful month so far this year, surpassing January's growth of more than 78%. Prior to this, November 2023 was the most successful, when TAO jumped by 238.7%.
The entire AI sector is also showing recovery, with valuations rising from $24 billion in September to $34 billion, and briefly peaking at $38 billion.
TAO and Its Role in Grayscale Portfolios
TAO is gaining increasing attention within Grayscale’s Decentralized AI Fund, where Bittensor has the second-largest allocation in the portfolio after NEAR. TAO allocation started with 2.6% and has now increased to 27.6%, almost in line with NEAR Protocol.
This Bittensor allocation far exceeds other tokens such as Render (RNDR) and Filecoin (FIL). Although Grayscale's AI fund is considered high risk and is only open for private placements to accredited investors, TAO remains an attractive asset for investors.
Responsive to Market Trends
TAO is known as a very active asset and responsive to market trends. With Bittensor's validator structure, approximately 78.28% of TAO tokens are currently staked, creating significant scarcity.
In addition, high returns from validators and daily incentives are also reasons for many investors to stake TAO. With a limited total supply of only around 7.38 million tokens in circulation, Bittensor promises attractive value potential for token holders.
Bittensor Network and AI Innovation
Bittensor functions as a Layer 1 (L1) network with over 129,000 active accounts as of October 2024. The network is built on Polkadot's Substrate, although it still has limited use.
Validators at Bittensor perform computational work related to AI models and training. The resulting models are tested for accuracy, and some validators can win the right to produce blocks based on the performance of their models.
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Post-Attack Recovery
Bittensor also managed to recover from an attack that occurred in July, when a compromised wallet resulted in a leak of $8 million in TAO. This attack was aimed at stealing private keys, but the Bittensor protocol was declared secure. However, the project team temporarily stopped block production and worked with the exchange to recover lost assets.
With all these developments, Bittensor (TAO) not only shows great potential in the AI ecosystem but also strengthens its position as one of the leading crypto assets in the market. Investors are expected to keep an eye on this trend as the AI narrative in the crypto world matures.
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