Nvidia bought $420 million worth of TAO. Grayscale’s TAO trust trades at a 50 percent premium to net asset value. Daily emissions halved from 7,200 to 3,600 TAO in December. And 77 percent of the total supply is staked, locked up, and not moving.
The liquid float is evaporating in real time.
Yet the market still lumps Bittensor in with AI memes. Aixbt, the popular crypto AI agent on X, pointed out the disconnect. The numbers tell one story. The market price action tells another.
The TAO price hit a local high of $374 this week. Then the broader crypto market turned south. Bitcoin and Ethereum each lost 7 percent of their value over the week. TAO pulled back with them and now trades around $318 at press time. But here is the kicker: TAO is still up 17 percent on the weekly chart. In a week where the two largest cryptocurrencies bled, TAO holders are still in the green.
Aixbt broke down why the fundamentals do not match the “AI meme” label.
Bittensor runs on a Bitcoin-like tokenomics model. Fixed supply of 21 million TAO. Halvings built into the code. The latest halving just cut daily emissions in half. That reduces sell pressure from miners competing for rewards.
But the real story is underneath. There are now 129 subnets competing for those reduced rewards. Each subnet is essentially a marketplace where intelligence is bought and sold. Combined annual recurring revenue from actual paying customers sits at $13.5 million. That is not token incentives or speculation. That is businesses paying for AI services on the network.
Nvidia’s purchase adds another layer. The company at the center of the AI boom bought TAO. Not a small test position. $420 million.
Then there is the Grayscale TAO trust. It trades at a 50 percent premium to NAV. That means institutional investors are paying 50 percent above spot price to get exposure. Why? Because the liquid float is drying up. With 77 percent of supply staked, there is not much left to buy.
Aixbt’s take is simple. The market still prices this as an AI meme when the subnet revenue says B2B infrastructure. A pending GTAO ETF decision in Q2 could absorb whatever float remains in days.
For now, TAO is holding up better than most. Down from the weekly high but still up double digits while Bitcoin and Ethereum took a hit. The question is whether the market finally starts pricing in the fundamentals or keeps treating it like another hype play.
Read also: Investor Who Made Millions With Uber Predicts Bittensor’s TAO Will 200X From Here – But There’s a Catch
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Solana Foundation Partners Triton One to Redesign Onchain Data Layer as SOL Gains 3%
The Solana Foundation is collaborating with Triton One to enhance its on-chain data access layer, improving scalability and data retrieval. The redesign features two core modules: Accounts for adaptive indexing and Ledger for efficient historical data management. SOL is currently trading around $84.
GateNews1h ago
Bitmine promoted to the NYSE Main Board! Tom Lee: U.S. stocks may be at a bottom, and selling pressure on Ether could ease
Bitmine has officially moved from the NYSE American board to the main board in the U.S., marking an important milestone for the company. Despite a sharp drop in its share price, it has still increased its share repurchase program to $4 billion. The company holds a large amount of Ether (ETH), and expects that a rebound in the crypto market will help improve its assets and share price performance.
CryptoCity3h ago
Bitcoin Reclaims $76,000 as US March PPI Misses Forecasts
Bitcoin surged past $76,000 following lower-than-expected US Producer Price Index data for March 2026, which indicated a 4% year-over-year increase. The rise reflects strong market support despite declining leveraged positions.
GateNews5h ago
BTC 15-minute rise of 0.64%: a technical breakout of key resistance combined with weak liquidity amplifies volatility
2026-04-14 15:30 to 15:45 (UTC), BTC saw short-term fluctuations within the 74,795.5 to 75,319.3 USDT range, with a return of +0.64% and a range of 0.70%. During this period, market attention warmed up, volatility intensified, trading volume rose slightly compared with the previous hour, and short-term buy orders pushed the price upward quickly.
The main driver of this unusual move was BTC’s short-term technical breakout above the 74,000 USDT key resistance, which generated a long signal and triggered rapid responses from quantitative and programmatic buy orders. At the same time, because the order book depth has been rising since 2025
GateNews5h ago
ETH rose 1.06% in 15 minutes: global political stimulation and a coordinated boost to risk appetite and on-chain activity together drove the move
From 15:30 to 15:45 (UTC) on 2026-04-14, the ETH price range was 2340.75 to 2367.0 USDT. Within 15 minutes, the return rate reached +1.06%, and the amplitude was 1.12%. Market volatility intensified, and on-chain and social attention rose in tandem. Short-term trading activity increased significantly, and investor sentiment shifted to optimism.
The main driving force behind this market move is the direct impact of an international political event on risk appetite. The United States announced a blockade of the Strait of Hormuz in the Middle East region related to the White House, creating a stark contrast with peace signals reportedly coming from Iran, and it triggered uncertainty and panic sentiment in the market.
GateNews5h ago
Bitmine gets promoted to the NYSE main board! Tom Lee: US stocks may be at a bottom, with selling pressure on Ether easing
Bitmine has officially moved from the NYSE American board to the main board, marking an important milestone for the company. Despite a sharp decline in its stock price, it has still increased the share repurchase plan to $4 billion. The company holds a large amount of Ether, and it expects that a rebound in the crypto market will help enhance its assets and stock price performance.
CryptoCity6h ago
