Bittensor (TAO) has emerged as one of the market’s standout performers, quickly recouping all its losses from the recent crypto Black Friday crash. This is a feat that even Bitcoin (BTC) and Ethereum (ETH) have yet to achieve.
The outlook for TAO is looking increasingly positive, supported by increased trading volumes, increasing institutional exposure and tight supply ahead of the first halving.
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What is driving Bittensor (TAO) to outperform the market?
Most of the major cryptocurrencies have fallen over the past two weeks, according to data from BeInCrypto Markets. In contrast, Bittensor (TAO) bucked this trend and rose 35.7% over the same period.
The cryptocurrency not only managed to recover from the October market crash, but also rose to multi-month highs. In the past day alone, the altcoin has increased in value by 5.95%, trading at $435.65.
There are several factors contributing to TAO’s strong performance. CoinGecko data showed that the token has maintained daily trading volume of over $400 million for the past week, except yesterday. On October 15, volume reached $943 million, indicating high trader interest and activity.
TAO’s growth is further supported by its strong stake participation. Taostats data reveals that more than 70% of TAO in circulation is staked. This limits the available trading supply and supports the price.
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Institutional interest fuels momentum
Institutional adoption further expanded Bittenshal’s influence. Grayscale’s decentralized AI fund has allocated more than a third of its holdings to TAO, demonstrating growing confidence in the coin as a central player in decentralized AI.
Additionally, the company recently filed a Form 10 for Grayscale Bittensor Trust with the SEC. This could pave the way for future exchange-traded products, similar to developments seen with other major cryptocurrencies such as BTC and ETH.
The launch of the ETF could provide further liquidity, institutional investor participation, and overall market visibility for TAO.
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Bitensol will reach its first half-life in December 2025
While current catalysts are driving short-term gains, additional factors could drive TAO’s long-term growth. December 2025 brings a milestone: the first halving event for Bittensor holders.
As stated in the official documentation, Bittensor halving does not follow a block timeline like Bitcoin. Instead, TAO’s supply-based triggers reduce daily emissions when set thresholds are reached. A planned reduction in the supply of new tokens can lead to price increases, especially if strong staking further limits liquidity.
Token recycling may change the halving timeline slightly, but the main effect is increased scarcity, which may cause increased demand.
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Additionally, the asset has received significant support from leading market experts. In fact, analyst Quinten Francois recently claimed that TAO could become a $1 trillion asset by 2030-2031.
“The most appealing thing about TAO is that its path should follow Reed’s Law, rather than Metcalf’s Law like BTC. Bitcoin reached a $1 trillion market cap in 2021, just 12 years after the Genesis block. In theory, TAO should do it within 12 years,” he predicted.
Francois cited the project’s competitive subnet model and Bitcoin-like tokenomics as key strengths. He also called TAO’s model “brilliantly thought out.”
As such, TAO is well-positioned as December approaches due to high trading volumes, staking, and institutional interest. The coming months will test Bitensor’s resilience as it moves into a phase of reduced supply and continued investor attention.
