TAO Surges, Driving New Narrative in AI Sector

2024-10-09, 09:58

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![](https://gimg2.gateimg.com/image/article/17284672671692587449analysis.jpeg)
## [TL；DR]: 
Bittensor (TAO) has been continuously rising since early September, with a 150% increase to date. Its current circulating market cap has reached $4.6 billion, ranking first in the AI sector.

Bittensor, Triathon, and other protocols have made positive progress in improving machine learning efficiency, data privacy, and decentralization, which will contribute to practical adoption.

## Introduction
According to recent market information from Gate.io, the artificial intelligence (AI) and Meme sectors have experienced strong rebounds. We have discussed Meme multiple times on our blog, and this article will further interpret the progress of the AI sector.
 
## TAO Led the Rise Significantly, the AI Sector Stopped Falling and Recovers
As the leading protocol in the AI sector, Bittensor (TAO) has been continuously rising since early September and has reached a 150% increase, just one step away from its historical high.

TAO's current circulating market cap has reached $4.6 billion, temporarily ranking first in the AI sector.
![](https://gimg2.gateimg.com/image/article/17284676571.jpg)
Source: Gate.io
 
Driven by consecutive gains in TAO, tokens in the AI sector have recently started to rise, with Delysium (AGI), Artifucial Liquid Intelligence (ALI), AIOZ Network (AIOZ), Triathon (GROW), and others leading the way in gains.
 ![](https://gimg2.gateimg.com/image/article/17284676742.jpg)
Source: Gate.io 
 
However, due to yesterday's slight decline in <a href="/id/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a>, which led to an overall market correction, the market value of the AI sector has slightly decreased. However, the total market value still reached $27.6 billion, with a 24-hour increase of 2.6%, which is relatively strong.

Of course, the recent series of significant rebound trends in the AI sector is not only related to the rotation of capital speculation pace, but also, more importantly, the market speculation triggered by multiple factors such as ChatGPT 5, Apple WWDC, and Worldcoin's upcoming major updates. This is also in line with the historical experience of the market not paying too much attention to fundamentals but focusing on strong narrative changes and broad prospects.
 ![](https://gimg2.gateimg.com/image/article/17284677593.jpg)
Source: @worldcoin 
 
## Developing Distributed AI Training, Bittensor Led the Market Trend
In fact, before the launch of a large exchange, Bittensor (TAO) had already been hyped up by the market due to its highly promising machine learning narrative. Despite the continuous decline in coin prices afterward, Bittensor's series of innovative upgrades have attracted market attention.

As an early open-source network supporting decentralized machine learning, Bittensor utilizes blockchain technology to drive new AI development and distribution strategies, emphasizing open access, decentralized governance, and utilizing global computing power and innovative resources. Its architecture includes subnets, Subtenser, and Bittensor APIs, which encourage miners, validators, and nominators to participate in network construction through incentive mechanisms, ensuring continuous optimization and efficient operation of the network.

Despite being hacked in July, causing a drop of over 15% in coin prices, Bittensor conducted a comprehensive review of its code thereafter, placing the verification node behind the firewall, and there were no further security incidents in versions 7.3.0 and subsequent versions.

Bittensor has made a series of positive developments recently. Bittensor v8.0.0 was recently released, introducing significant performance enhancements through the new BTCLI and Bittensor SDK. The re-encoding of BTCLI has improved interaction efficiency, while the SDK's lightweight design makes it easier to deploy.

By the end of September, the TAO Foundation announced the launch of a new subnet called Fish. This subnet provides scalable computing resources for GPU rental platforms and supports TAO token payments, further expanding the utility scenarios of tokens.
 ![](https://gimg2.gateimg.com/image/article/17284678094.jpg)
Source: @opentensor
 
Bittensor's continuous technological upgrades have enabled its business to progress significantly in network growth. According to official data, there are nearly 6 million TAOs currently pledged on the Bittensor network, accounting for 78.14% of the supply.
 ![](https://gimg2.gateimg.com/image/article/17284678245.jpg)
Source: taosats.io 
 
In summary, Bittensor has recently received sustained attention in areas such as technological upgrades, the 2025 halving event, and network growth, which has attracted the interest of institutions such as Grayscale to increase their holdings. This has driven optimistic market performance and led the long-dormant AI sector to turn red again.
 
## What are the New Trends in the Long-Established AI Sector?
According to incomplete statistics, dozens of emerging AI projects have successfully integrated AI technology with crypto-native projects since the beginning of this year. By optimizing network performance, supporting autonomous agents, and training decentralized artificial intelligence, the overall efficiency of the system has been significantly improved.

In fact, since the beginning of this year, AI has not only begun to penetrate and even reshape the crypto ecosystem, but has also generated many innovative use cases. It can be said that AI has provided more alternative options for the crypto ecosystem, especially the potential for transformation in transactions, security, and data analysis is still enormous.

Firstly, let's examine the adoption of AI in crypto systems. Whether emerging AI projects or crypto-native projects actively embrace AI technology, AI has played an efficient and positive role in optimizing network performance, supporting autonomous agents, and decentralized artificial intelligence training.

For example, the old public chain NEAR integrates AI to optimize network performance. At the same time, <a href="/id/price/fetch-ai-fet" target="_blank" class="blog_inner_link">Fetch.ai</a>'s autonomous agent can perform complex tasks and experiments with real-world practices such as contract negotiation, logistics optimization, and energy management.
 ![](https://gimg2.gateimg.com/image/article/17284678576.jpg)
Source: Galaxy
 
In addition, AI+DeepIN's cloud computing project has become a hot topic this year. Platforms such as Gensyn, IO.net, <a href="/id/price/render-rndr" target="_blank" class="blog_inner_link">Render</a>, etc., are orchestrated in wide-area networks, significantly enhancing scalability and meeting specific computing scenario requirements for training and inference.
 ![](https://gimg2.gateimg.com/image/article/17284678747.jpg)
Source: @ionet
 
Bittensor, Triathon, and other protocols have improved machine learning efficiency, data privacy, and decentralization. These projects have already started utilizing technologies such as ZKML/OPML to ensure the openness and permissionless nature of AI, and to establish data ownership of accounts by enabling on-chain transactions. This will allow users to truly own their AI data and incentivize developers and users to train and share AI models, in stark contrast to centralized platforms such as OpenAI.

However, limited by the small sample size of basic model data, a large number of AI protocols are still competing on basic applications such as AI trading assistants and risk warnings. The rise of the decentralized AI market and the improvement of data ownership and transparency may bring about a surge in innovation and technology, truly providing broader and more comprehensive support for DeFi, RWA, and GameFi.

In summary, the resurgence of the AI sector in the crypto ecosystem not only demonstrates its powerful capabilities in optimizing networks, improving efficiency, safeguarding data privacy, and promoting decentralization, but also brings unprecedented innovation opportunities for the practical applications of the crypto ecosystem. It can be predicted that the deep integration of AI and crypto technology will become an important engine to promote the sustainable development of the entire industry, opening a low-foam and efficient intelligent crypto era.

<div class="blog-details-info">
<div>Author: Carl Y., Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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