Bittensor’s TAO Token Sees Remarkable 15% Increase in 24 Hours, Driven by Ecosystem Developments

Bittensor’s native token, TAO, experienced a big surge of over 15% within 24 hours, rising from $289.14 to $334.65. This notable increase occurred amidst market uncertainty surrounding the US Federal Reserve’s anticipated interest rate cut announcement. Bittensor (TAO) has blossomed as a top performer on both short-term and long-term charts, thanks to strong community support and ongoing ecosystem developments.

What’s being built in #Bittensor is incomprehensible. $TAO is the only future. https://t.co/xfJsIXJZtZ

— brendan (@BrendanPlayford) September 19, 2024

In the last 24 hours, Bittensor (TAO) saw its price jump from $289.14 to $334.65, reflecting a 15% increase. By 5:00 AM UTC, the price stabilized around $323, securing about 12% of its gains for the day, Coinfomania price update today shows.

During this period, trading volume for TAO spiked by 64%, with $118.25 million worth of tokens exchanged between DeFi wallet addresses. This surge in activity boosted the market cap of its 7.38 million token supply to $2.397 billion.

🔥 Hot Trending

💎 Bittensor $TAO

💰 Price: $381.91
⚡️ 24h change: +20.94%
📈 24h high: $382.71
📉 24h low: $306.29#Bittensor pic.twitter.com/kdNfunBBRM

— Hawk App (@hawkApp_) September 19, 2024

On a broader scale, Bittensor’s native token has shown impressive growth, gaining around 16% over the past week and month and a remarkable 487% over the past year. Despite this recovery, TAO remains 57% below its all-time high (ATH) of $767.68, recorded five months ago.

The Sponsors of the Price Increase

The recent price burst can be tied to several factors. Investors were cautious at the time due to the US Federal Reserve’s anticipated announcement from the ongoing Federal Open Market Committee (FOMC) meeting. The market expected an interest rate cut of at least 25 basis points (bps), which turned out to be 50bps (0.5%) at the end of yesterday’s meeting. This Fed cut is currently shaking both equity and crypto markets.

The Fed has made the first rate cut in four years as a result of the September 17-18 Federal Open Market Committee (FOMC) meeting. The FOMC landed on a substantial 0.50% decrease with up to another 0.50% in cuts forecasted before year end. Read more: https://t.co/1JqEoVKdPf pic.twitter.com/oHVO8TD6lm

— Raymond James (@RaymondJames) September 18, 2024

This cautious sentiment is reflected in Alternative’s multifactorial Crypto Fear & Greed Index, which scored 45 points, placing it in the “Fear” territory. Despite this, Bittensor’s gains highlight its resilience and adaptability in the face of market uncertainty, underscoring the strength of its community support.

Comparing TAO to Bitcoin (BTC)

A pseudonymous analyst on X, known as “The Smart Ape,” recently compared TAO to Bitcoin (BTC), stating, “TAO is like BTC on steroids” after reviewing its whitepaper.

$TAO is like $BTC on steroids!

Spent my weekend diving into the whitepaper and found some mind-blowing stuff!

Four-digit is just a matter of time, here’s the breakdown of what you need to know 🧵🔽 pic.twitter.com/UtKMaqD0EM

— The Smart Ape 🔥 (@the_smart_ape) September 16, 2024

Bittensor incorporates a Proof-of-Work model similar to Bitcoin. Equally, it has adopted a Proof-of-Stake (PoS) consensus mechanism. This combination has led to its unique Proof-of-Intelligence infrastructure, where nodes perform machine-learning tasks to demonstrate their intelligence. The blockchain creates new blocks and rewards tokens based on the accuracy and value of the output generated by the nodes.

Besides, TAO has a token cap of 21 million, similar to BTC, and employs a deflationary mechanism through halving every four years.