One of the best performing altcoins this week is Bittensor’s TAO.
The TAO price bounced off the $250 area to over $330 at press time, marking an impressive 30% pump.
Besides Kaspa, this is one of the strongest utility coins in this bull run. And why do I say this?
Well, Bittensor does have strong fundamentals. It’s focused on the development, training, sharing, and trading of artificial intelligence (AI) and machine learning (ML) models.
Bittensor operates through a network of subnets comprising miners (who address AI tasks), validators (who verify miners’ results), and end-users.
TAO is used for encouraging miners, staking, governance, transaction fees, and payments within the Bittensor ecosystem. It has a total supply capped at 21 million tokens, similar to Bitcoin. Therefore, TAO and BTC are in some way connected.
Read also: Have Ripple vs. SEC Settlement Rumors Fueled XRP Price Pump?
The Catch: Bitcoin’s Influence
It’s hard to believe TAO price can make any big moves unless Bitcoin stays a “green boy”.
TAO’s all-time high (ATH) is around $730, which coincidentally occurred at the same time Bitcoin hit its ATH in mid-March.
The negative side here is that if Bitcoin price goes into correction mode again, we’ll likely see something similar from TAO as well.
When we look at the TAO chart, we can see that price is recovering, but in the last few months it’s been in the downtrend (like most other altcoins).
Source: DEXScreener/wTAO
Grayscale announced the launch of its AI fund, and TAO is in their portfolio, which is another positive sign for this coin.
Wow. @Grayscale launching an AI fund.The weights here are all wrong, but bullish nonetheless.$tao should probably have the highest weight here. pic.twitter.com/mcmhq40ngC
— Joe Vezzani (@joevezz) July 17, 2024
So, at this point, you must be wondering what’s the deal with TAO? It’s pumping, yes, but as always I say to traders – don’t get too excited.
While it’s got some solid tech behind it and big players like Grayscale are taking notice, we can’t ignore how tied it is to Bitcoin’s mood swings.
If BTC decides to take a nosedive, TAO might follow this path too. Still, for those keeping an eye on AI-focused coins, TAO’s definitely one to watch.
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The post Bittensor Price Pump Continues as Grayscale Adds TAO to Its AI Fund, But Here’s the Catch appeared first on CaptainAltcoin.
