Bittensor (TAO) Leads AI Token Rally with 160%+ Monthly Gains.

Artificial intelligence-based tokens led by Bittensor (TAO) showed strength on October 7, gaining 16% in the past 24 hours to trade at $637. TAO is trading 7.5% higher than its price seven days ago and has gained a whopping 164% over the past 30 days.

Data from Cointelegraph Markets Pro and TradingView show that Bittensor's recovery began on September 7, rising 207% from a low of $220 to a 6-month high of $678 on October 7. That's 13% shy of an all-time high of $767. It peaked on April 11.

TAO's price growth was accompanied by a high trading volume, which increased by 286% between September 7 and October 7, indicating an increase in trader interest in the AI-themed token. At the same time, the market capitalization jumped from 1.7 billion dollars, increased by 171% to 4.7 billion dollars in the same period, which is the second largest AI-based token.

Let's take a look at what's fueling Bitensor's rally.

Greyscale's decentralized AI fund increases the value of TAO

TAO's price increase comes as it gains prominence in Grayscale's decentralized AI fund. On July 17th, Grayscale, a US-based crypto asset management company, announced the launch of a new investment product, dubbed the Grayscale Decentralized AI Fund, that leverages tokens native to decentralized AI protocols, including Bittensor's TAO.

Two weeks ago, Grayscale increased TAO's share of the portfolio from 2.6% to 27.6%, which is close to protocol. As of October 4, Bittensor's allocation stood at 29.5%, slightly higher than NEAR, which came in second with 29.15% of the fund's total holdings. These recent classification changes have added to the momentum behind TAO's divestment from the pack.

AI collects TAO value when tokens are recovered

TAO is not the only AI-themed token that is outperforming the crypto market today. Other cryptocurrencies in the AI ​​sector have seen impressive gains over the past month, including Near Protocol (NEAR), Internet Computing (ICP), and The Graph (GRT), which have gained over 42%, 17%, and 28%, respectively. , in the last 30 days.

The Artificial Superintelligence Alliance (FET) has shown significant progress compared to last month when the community voted that CUDOS could join Fetch.ai, SingularityNet and Ocean Protocol in the ASI alliance.

In particular, the rise of AI tokens has come with an increase in their total market value. According to additional data from CoinMarketCap, the market capitalization of AI and big data crypto projects and tokens has increased by 48.7% to $36.9 billion in the last four weeks, indicating renewed investor confidence in the sector.

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Investors are once again turning their attention to AI, Bitcoin and crypto.

TAO's price has mirrored Bitcoin's (BTC) price recovery, which jumped 21% between September 6 and October 7. In early September, the market was negatively affected by investors fearing a global recession and weak jobs data. US.

Data from Alternatives, a platform that analyzes “sentiment and sentiment” around cryptocurrencies, has confirmed that the Crypto Fear and Greed Index has dropped into the “High Fear” zone at the time.

However, the sentiment returned to “neutral” as markets began to recover and crypto investors sought to recoup losses.

A trending narrative, AI will continue to make a comeback in 2024, even if altcoin and token drawdowns are encountered along the way. Real-life use of generative AI and LLM will focus more on the physical infrastructure and shared GPUs that some of the projects offer, increasing investor interest in the underlying tokens.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.