Bittensor (TAO) Price Prediction: Will the AI Token Continue Its 160% September Rally?

Berita KuCoin

Waktu Rilis:2024-10-08 07:20

Bittensor (TAO) has captured the attention of the crypto market. The AI-based token surged by 164% in the last 30 days, positioning itself as one of the top-performing tokens in the AI sector. On October 7, TAO continued its rise, jumping 16% in 24 hours and hitting a high of $637.

Quick Take

Bittensor (TAO) surged by 164% in September 2024, marking one of the strongest performances in the AI token sector.
Grayscale’s Decentralized AI Fund significantly boosted TAO’s price by increasing its allocation, fueling strong market demand.
TAO has now become the second-largest AI token by market capitalization after NEAR Protocol, surpassing several major competitors, including Internet Computer Protocol and Artificial Superintelligence Alliance.

The token’s performance over the past month is impressive. TAO has gained 207% since hitting a low of $220 on September 7, peaking at $678 on October 7. This price is just shy of its all-time high of $767, reached in April 2024.

Grayscale Increases TAO Holdings to Over 30% in AI Fund

Grayscale Decentralized AI Fund holdings | Source: Grayscale

TAO’s meteoric rise is closely tied to Grayscale’s Decentralized AI Fund. In July, Grayscale launched this new investment fund to focus on decentralized AI protocols, including Bittensor’s TAO. The real boost for TAO came two weeks ago when Grayscale increased its allocation in the fund from 2.6% to 27.6%, and by October 4, TAO accounted for 30.2% of the fund. This move pushed TAO ahead of other major AI tokens like NEAR Protocol and Filecoin, driving the price even higher.

TAO Trading Volume Rises Nearly 300% in September

With TAO’s price rise came a significant uptick in its trading volume. Between September 7 and October 7, TAO’s trading volume surged 286%, signaling growing interest from traders. Market capitalization also saw a sharp increase, jumping from $1.7 billion to $4.7 billion, solidifying TAO’s position as the second-largest AI token by market cap.

AI Tokens’ Market Cap Surges By 40%

AI coins’ market cap and 24h trading volume | Source: CoinGecko

Bittensor’s rally isn’t happening in isolation. The broader AI crypto sector is on the rise. Tokens like NEAR Protocol (NEAR), Internet Computer (ICP), and The Graph (GRT) have also seen gains of 42%, 17%, and 28%, respectively, in the past month. The market value of AI and big data tokens has surged by nearly 49% over the last four weeks, reaching $36.9 billion before dipping to $28.1 billion at the time of writing. This reflects renewed investor confidence in the AI sector.

TAO’s Strong Investor Interest Supported by BTC Rally

The rally in TAO mirrors the broader recovery of the crypto market, particularly Bitcoin (BTC), which saw a 21% jump between September 6 and October 7. As crypto investors regained confidence, AI-based tokens like TAO benefited from the momentum.

Sentiment data suggests that investors have turned bullish on AI tokens. Bittensor’s rise in Grayscale’s Decentralized AI Fund has further cemented its position as a key player in the AI sector. TAO is now on the radar of institutional investors and retail traders alike.

How High Can Bittensor Price Go?

TAO/USDT price chart | Source: KuCoin

With TAO’s current trajectory, the question remains whether it can sustain its rally. Despite nearing its all-time high of $757.60, optimism in the market remains high. The continued rise in trading volume and investor interest suggests that TAO could break new records in the coming weeks.

However, like all crypto assets, TAO’s future performance will depend on various factors, including overall market conditions and sentiment shifts. As with any asset experiencing such rapid gains, investors should remain cautious of potential price corrections.

Conclusion

Bittensor (TAO) is leading the AI token rally with impressive gains, driven by increased exposure in Grayscale’s Decentralized AI Fund and growing interest in AI-based tokens. While TAO shows strong momentum, it’s essential for traders to watch for potential resistance as it nears its all-time high.

Whether TAO continues its upward trend or faces a correction, its rise reflects the increasing focus on AI and big data projects within the crypto market. However, as with any high-performing asset, there is always a risk of volatility. Investors should exercise caution and be prepared for potential price fluctuations in the short term.

Penafian: Informasi pada halaman ini mungkin telah diperoleh dari pihak ketiga dan tidak mencerminkan pandangan atau opini KuCoin. Konten ini disediakan hanya untuk tujuan informasi umum, tanpa representasi atau jaminan apa pun, dan tidak dapat ditafsirkan sebagai saran keuangan atau investasi. KuCoin tidak bertanggung jawab terhadap segala kesalahan atau kelalaian, atau hasil apa pun yang keluar dari penggunaan informasi ini. Berinvestasi di aset digital dapat berisiko. Harap mengevaluasi risiko produk dan toleransi risiko Anda secara cermat berdasarkan situasi keuangan Anda sendiri. Untuk informasi lebih lanjut, silakan lihat Ketentuan Penggunaan dan Pengungkapan Risiko.