Recently, the price of Bittensor (TAO) has surged strongly, breaking through key moving averages on the technical front while trading volume has increased, indicating that market buying momentum is strengthening. Meanwhile, there is a trend of capital rotation towards the AI sector in the overall crypto market, with the Altcoin season index continuing to rise. TAO has also shown signs of strength independent of Bitcoin, further attracting investor attention to the development of its underlying ecosystem.
According to data disclosed by crypto analyst Tanaka on the X platform, approximately 68% of the total supply of TAO has been staked. This high staking ratio reflects the strong confidence of holders in the long-term value of the project—they prefer to earn network incentives through staking rather than selling on the market. This also means that an increasing number of validator nodes, miners, and new users are deeply participating in the Bittensor network, driving continuous expansion of the ecosystem.
As the amount staked steadily rises, the circulating supply in the market continues to decrease. Even with price fluctuations, the staking rate remains on an upward trend, forming a typical “supply contraction” structure. Against the backdrop of steadily growing demand, this supply-demand imbalance is likely to trigger a nonlinear price surge, known as the “supply squeeze” effect.
If the demand for AI infrastructure further explodes in the future, especially with the continued entry of miners, validators, and institutional investors focused on the AI sector, TAO may face a serious liquidity shortage. In a moderate demand scenario, the price is expected to challenge the $350 to $450 range; under strong demand drivers, the price could break through the $650 to $850 mark, forming a new round of price momentum.
The current TAO price is fluctuating around $195, but its underlying asset structure has laid the groundwork for a potential price leap. The market is waiting for demand signals to trigger, and the sustained high staking rate is the most solid foundation for this potential market movement.