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Bittensor (TAO) Surges 100%, Eyeing $3 Billion Market Cap: Analyzing The Propelling Factors

Among the digital currencies focused on artificial intelligence (AI), Bittensor (TAO) has recently gained significant attention as the best-performing asset, soaring by an impressive 109% over the past 30 days and achieving a market capitalization of $2.9 billion. 

To comprehend the driving forces behind this growth, it is essential to understand what underpins the platform and the catalysts that have captured investors’ attention, enabling it to reach an almost $3 billion market cap in record time.

Bittensor ‘Game-Changing’ Upgrade? 

According to Sami Kassab, a researcher at Messari, Bittensor has transitioned from being a niche crypto-AI project to gaining widespread recognition within the open-source AI community. 

Notably, a significant network upgrade proposal called Dynamic TAO has been pivotal in this surge. Bittensor operates as an ecosystem of specialized networks, known as subnets, each dedicated to a specific machine learning use case or resource provision.

These subnets offer diverse services, including conversational AI platforms similar to ChatGPT, prediction tools for financial markets, pre-trained and fine-tuned models, synthetic data, and data storage solutions. 

The Root Network, specifically subnet 0, functions as Bittensor’s governing body, where Root validators vote on the allocation of emissions to the various subnets. However, two key issues have been identified with the current system:

  • Concentration of Influence Over Emissions: The top five Root validators control over 60% of the token supply.
  • Scalability Issues: The manual process of setting emissions for each subnet becomes increasingly impractical as the number of subnets grows.

The foundation has proposed a network upgrade known as Dynamic TAO to address these issues. This upgrade aims to replace the Root Network with an automated, market-driven mechanism for emission distribution, shifting away from a subjective, manual process dominated by a few validators.

Furthermore, according to the researcher, under Dynamic TAO, each subnet would have its unique token and native liquidity pool paired with TAO. 

Emissions would be allocated based on the relative market price of these subnet tokens. Subnets that generate the most value would see their subnet tokens in high demand from validators, signaling the protocol to allocate more emissions to them.

Bullish Demand For TAO

To prevent potential dilution of TAO, subnet tokens are designed to be non-transferable outside the Bittensor system. 

The conversion between subnet tokens and TAO would occur through the protocol’s intrinsic liquidity pools (LP), treated as a staking activity. According to Kassab, acquiring subnet tokens would thus require purchasing and staking TAO within a subnet pool for validation or speculation.

This design is expected to create bullish demand for TAO, as the need for subnet tokens would drive an increased demand for TAO. 

For instance, the research shows that if subnets achieve a collective valuation of $1 billion, assuming a 10% weekly trading volume relative to their market cap, the demand for TAO could witness a 2 – 4x surge, driven by the requirement to purchase TAO before acquiring subnet tokens.

Ultimately, Kassab believes that the Dynamic TAO proposal sets the stage for an “AI Casino” within Bittensor, a development with positive implications for the platform and the token’s price growth.

Overall, Bittensor’s solutions and proposals demonstrate an intriguing approach to drive growth within its ecosystem. These initiatives aim to attract investors, stakers, and developers focusing on artificial intelligence, all while leveraging the potential of its native token, TAO.

Bittensor

At the time of writing, the TAO token is trading at $481, reflecting an increase of over 12% within 24 hours. Furthermore, TAO has demonstrated a sustained upward trend over significant time frames, with an 8% growth in the past 7 days and an 85% growth over the past 14 days.

Moving forward, it remains to be seen how the protocol will continue to attract new investors and developers, potentially driving TAO’s price beyond its current all-time high of $521, achieved on February 6. 

Featured image from Shutterstock, chart from TradingView.com

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Crypto Analyst Explores The Hype: Are These The Best 2 AI Altcoins?

Two AI-focused projects have recently garnered significant attention: Render Network (RNDR) and Bittensor (TAO). These projects, while distinct in their objectives and execution, are at the forefront of integrating artificial intelligence with blockchain technology. Analyst Crypto Stream has analyzed the two most hyped AI projects in this cycle and tried to answer the question: “Which one is the true king of AI coins?”

Render Network (RNDR): A Leap In GPU Rendering

Crypto Stream highlights that Render Network addresses a critical need in the current digital era: the demand for GPU computing power. Industries ranging from filmmaking to AI research are constantly seeking more computational resources, a need that even major tech giants struggle to meet.

Render Network ingeniously tackles this issue by enabling individuals with GPU resources to monetize their idle computing power. As Crypto Stream puts it, “Render Network is not just optimizing resource utilization but is fundamentally changing the dynamics of GPU computing power accessibility.”

The economic model of RNDR has evolved since its inception as an ERC-20 token in 2017. Migrating to the Solana blockchain, the project introduced a burn mechanism, where RNDR tokens equivalent to the fiat value of GPU power purchased are burnt, potentially reducing the token supply over time. “This burn mechanism,” Crypto Stream notes, “is a fascinating aspect of RNDR, adding a deflationary characteristic to its tokenomics.”

Discussing RNDR’s market performance, Crypto Stream observes that the token’s peak at over $7 in 2022 and its current price at $3.49 reflect its substantial growth. With a market capitalization of $1.3 billion and a fully diluted valuation of $1.8 billion, RNDR has already experienced a significant 10x increase this year. “We’re not early in the game with RNDR, but its potential in the AI space still makes it a project worth watching,” advises Crypto Stream.

At press time, RDNR was trading at $3.56, slightly below the 0.382 Fibonacci retracement level at $3.60.

Render RDNR price AI altcoin

Bittensor (TAO): Democratizing AI Model Deployment

Bittensor’s aim to decentralize the deployment of machine learning algorithms stands in contrast to RNDR. It aims to challenge the dominance of tech giants in AI, such as OpenAI and Meta, which control the best AI models, by creating a platform for trading specialized AI models.

“Bittensor is opening doors for smaller research teams globally, allowing them to contribute and monetize their specialized AI models,” states Crypto Stream. This specialized focus actively caters to a variety of needs, including non-English languages and niche industries, often overlooked by larger players.

Crypto Stream is particularly impressed by Bittensor’s tokenomics, which are inspired by Bitcoin’s model. “With a total supply mirroring Bitcoin’s, no premine or ICO, and a halving cycle every four years, TAO’s economic design is both robust and promising,” he comments.

Approximately 6 million TAO tokens are currently in circulation, with the token trading near its all-time high of $304. “TAO’s current market cap of $1.8 billion and an FDV exceeding $6 billion signify its growing prominence, though much of its supply is yet to be released into the market,” Crypto Stream added.

TAO price

Which One Is The Best AI Altcoin?

Crypto Stream concludes that both RNDR and TAO offer unique and complementary solutions to the AI and crypto sector. RNDR’s focus is on solving the hardware problem by leveraging unused GPU power, while TAO addresses the software side by enabling a marketplace for AI models.

“It’s hard to declare a definitive leader in the AI token space,” Crypto Stream reflects, “as both RNDR and TAO bring innovative solutions to the table. RNDR’s burn feature and TAO’s Bitcoin-like tokenomics each have their own appeal, targeting different needs within the AI and crypto markets.”

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Unleashing The Bull: The Astonishing 400% Rise Of An AI Crypto – Details

The merging of blockchain technology with the prowess of AI (artificial intelligence) has paved the way for groundbreaking initiatives. Among these, Bittensor (TAO) stands out as a cutting-edge protocol specifically developed for the advancement of machine learning models.

This dynamic synergy between blockchain and AI not only underscores their capabilities but also heralds a new era of collaborative innovation.

Bittensor (TAO), a cryptocurrency centered around artificial intelligence, has made notable traction in the trending altcoin space. Its value surged nearly fivefold in under 30 days, riding the wave of excitement around AI-focused cryptocurrencies.

AI Crypto TAO Makes Presence Felt

This rapid growth highlights Bittensor’s commanding presence in the current altcoin landscape and reflects the increasing interest in cryptocurrencies that leverage AI to reshape finance and technology.

At the time of writing, TAO is valued at $265, reflecting a commanding increase of 80% in the last seven days and an impressive leap of nearly 400% in the last 30 days.

Based on data by TradingView, TAOUSDT tallied an all-time high of $267 on Monday, and boasts a market capitalization exceeding $1.27 billion.

As such, Bittensor (TAO) has surpassed Render Network (RNDR), which had been the clear leader in the market for a few months, to become the leading artificial intelligence cryptocurrency, according to CoinGecko.

By integrating artificial intelligence and blockchain consensus, the Bittensor (TAO) project offers a fresh perspective. In order to create a decentralized economy, Bittensor plans to let AI models participate in blockchain consensus.

Making Significant Strides In The Crypto Space

Bittensor (TAO), an AI protocol based on open-source principles, was introduced to the public by Jacob Steeves, a former Google developer, on September 19, 2023.

Over the past two months, Bittensor (TAO) has made several significant announcements, encompassing notable improvements in miners’ performance, the introduction of additional subnets, and important advancements in the building of huge language models, among other things.

Meanwhile, an overwhelming majority of businesses (more than 70%) see blockchain and AI as complementary technologies, highlighting the mutually beneficial relationship between the two.

An intriguing new dimension to the Bittensor narrative has emerged with the recent crypto market boom that followed OpenAI’s AI Developer Day on Nov. 6.

Enhanced GPT-4 and GPT-3.5 natural language models are among the new AI capabilities unveiled by OpenAI, which may have an effect on AI tokens. This might be the reason why crypto-based AI is gaining popularity.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Negative Space/Pexels