Bittensor’s AI Token Market Cap Surpasses $3 Billion

Over the past 30 days, the price of the TAO token from the Bittensor protocol has surged by 135%. The market capitalization of the asset has reached $3.04 billion, according to CoinGecko.

At the time of writing, the TAO price is undergoing a correction. The coin has decreased by 4.4% over the past day and is trading at $487.

In late January, Ethereum co-founder Vitalik Buterin mentioned the project in his essay on the potential synergy between cryptocurrency technologies and artificial intelligence. In his view, Bittensor exemplifies how digital assets can incentivize AI advancements.

The protocol’s developer, Opentensor Foundation, aims to financially reward the creation of “useful models” with open-source code.

“People in the system will compete with each other to provide the best result. If I perform better than you, I will receive more rewards because my model works more accurately,” commented Opentensor Foundation co-founder Ala Shaabana to The Block.

According to the Bittensor website, the protocol has over 69,000 active accounts. A total of 5.8 million TAO tokens have been issued (CoinGecko reports 6.2 million), with the supply capped at 21 million.

In November 2023, Bittensor, along with several other AI tokens, experienced a sharp rise amid staffing turmoil at OpenAI.