Bittensor's native token, TAO, has rallied 90% this month, while its ecosystem tokens have surged even more dramatically. The subnet tokens collectively hit a market cap of $1.47 billion on March 26, with daily trading volume exceeding $118 million. Subnet tokens like Templar (Subnet 3) saw gains of 444%, OMEGA Labs rose 440%, and others posted substantial returns. This surge follows TAO's climb from $180 to over $332 in March.
Bittensor is a decentralized AI network that incentivizes global participants to contribute computing power and machine learning models for TAO rewards. Its subnets focus on specific AI tasks, such as training language models or running compute infrastructure. Subnet 3 produced Covenant-72B, a large language model trained across Bittensor's network by over 70 contributors using commodity hardware. The model achieved a competitive MMLU score of 67.1, comparable to Meta's Llama 2 70B.
Nvidia CEO Jensen Huang endorsed Bittensor's approach on the All-In Podcast, framing decentralized AI training as complementary to proprietary models. This endorsement added credibility beyond typical crypto circles.
The subnet token mechanics amplify TAO's value, as each subnet operates an automated market maker with a native token tied to TAO staked in its reserves. With plans to expand to 256 active subnets later this year, institutional interest could grow if Grayscale converts its TAO Trust into a spot ETF by late 2026. Digital Currency Group's Yuma is already contributing to multiple subnets, signaling confidence in Bittensor's infrastructure potential.
Whether the rally sustains depends on continued production of competitive AI models like Covenant-72B.
