Bittensor (TAO) showed positive market movement this Thursday after breaching the $300 threshold. This price action occurs just days before the network's first historic halving, a scheduled scarcity event that could allow bulls to target recent highs. Growing confidence in Bittensor's role as a pioneering platform in decentralized AI and machine learning incentives positions TAO as one of the most-watched assets by traders.
The upward trend for TAO, which placed it above $300, represents a crucial moment. The altcoin surged past $314 before paring some of those gains. This rally is framed by renewed optimism for the Artificial Intelligence sector. Bittensor is already the leading AI-related coin by market capitalization, surpassing projects like NEAR Protocol and Render.
Wall Street giants support this optimism. Analysts from BlackRock and Bank of America are forecasting a new “supercycle” for AI, pointing out that the boom is not a bubble but is driven by real corporate investments and productivity gains. With the AI sector on the verge of an explosion, the imminent Bittensor (TAO) halving becomes a key catalyst.
The TAO Halving: Tokenomics and Scarcity
The Bittensor (TAO) halving, scheduled for approximately 10 days from now, has the central objective of modifying the protocol’s tokenomics. Currently, the network emits approximately 7,200 TAO daily to reward participants in its proof-of-intelligence consensus. However, the halving will reduce these daily emissions by half, dropping to 3,600 TAO.
With a total supply of 21 million tokens (just like Bitcoin), this event ensures the asset’s long-term scarcity as the adoption of Bittensor as a competitive marketplace for artificial intelligence grows.
Typically, these types of supply reductions fuel significant price increases; BTC jumped after its 2024 halving, and TAO bulls are anticipating a potential return to $500 (the all-time high was $795.6 in April 2024).