The artificial intelligence-based token led by Bittensor (TAO) had a strong day on October 7, trading at $637, up 16% in the last 24 hours. TAO is trading 7.5% above its price 7 days ago and is up a whopping 164% in the last 30 days.
Bittensor’s recovery began on September 7 and rose 207% from a low of $220 on October 7 to a six-month high of $678, according to data from Cointelegraph Markets Pro and TradingView. This is only 13% of the all-time high of $767. The peak was reached on April 11.
TAO/USD daily chart. source: TradingView
Along with TAO’s price rise, trading volume increased 286% between September 7 and October 7, suggesting increased trader interest in the AI-themed token. Likewise, its market capitalization has surged from $1.7 billion to $4.7 billion over the same period, up 171%, solidifying its position as the second-largest AI-based token.
Let’s dig into what’s driving Bittensor’s rally.
TAO price rises with Grayscale’s decentralized AI fund
TAO’s price surge comes as it gains prominence in Grayscale’s decentralized AI fund. On July 17, Grayscale, an American cryptocurrency asset management company, announced: Launch of a new investment product called Grayscale Decentralized AI Fund, which derives value from the underlying token prices of decentralized AI protocols, including Bittensor’s TAO.
source: gray scaleE
Two weeks ago, Grayscale increased TAO’s allocation in its portfolio from 2.6% to 27.6%, which is roughly the same as Near Protocol. As of October 4, Bittensor’s allocation was 29.5%, slightly ahead of second-place NEAR’s allocation at 29.15% of the fund’s total holdings. This recent change in allocation has added momentum to TAO’s breakout from the pack.
Grayscale Decentralized AI Fund Token Allocation. Source: Grayscale
TAO price rises as AI token recovers.
TAO is not the only AI-themed token outperforming the cryptocurrency market today. Other cryptocurrencies in the AI sector, including Near Protocol (NEAR), Internet Computer (ICP), and The Graph (GRT), have seen impressive gains over the past month, with gains of over 42%, 17%, and 28% respectively. , over the past 30 days.
Performance of top AI tokens by market capitalization. Source: CoinMarketCap
The Artificial Superintelligence Alliance (FET) also made significant gains, up 42% compared to last month, with the community voting on a process that would allow CUDOS to join Fetch.ai, SingularityNet, and Ocean Protocol in the ASI alliance.
In particular, the surge in AI tokens was also accompanied by an increase in overall market value. The market capitalization of AI and big data cryptocurrency projects and tokens has surged 48.7% over the past four weeks, reaching $36.9 billion at the time of issuance, reflecting renewed investor confidence in the sector, according to additional data from CoinMarketCap.
Market capitalization and size of the AI and big data token market. Source: CoinMarketCap
relevant: Europe is not a top priority for Sam Altman’s Worldcoin, executive says
Investors Remain Optimistic About AI, Bitcoin, and Cryptocurrencies
TAO price rose 21% between September 6 and October 7, reflecting the Bitcoin (BTC) price recovery. In early September, investor concerns about a global recession and weak employment data for 2019 had a negative impact on the market. USA.
According to data from Alternative, a platform that analyzes ‘feelings and emotions’ about cryptocurrency, the cryptocurrency fear and greed index at the time appeared to have entered the ‘extreme fear’ area.
However, as markets began to recover and cryptocurrency investors looked to recoup their losses, sentiment returned to “neutral.”
Fear and Greed Index. Source: alternative.me
As a trending story, AI continues to make a comeback in 2024 despite the altcoin and token declines it has experienced along the way. Real-world use of generative AI and LLM will draw more attention to the available physical infrastructure and shared GPUs that some projects provide, increasing investor interest in their native tokens.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.