Bittensor‘s TAO token has climbed approximately 90% during March, with subnet tokens across its ecosystem recording even steeper gains. Together, the network’s tokens have reached a combined market value of around $1.47 billion. The rally has drawn renewed attention to Bittensor’s decentralized approach to artificial intelligence development.
A key driver behind the momentum is Subnet 3‘s Covenant-72B model, a large language model trained without centralized oversight. The model recorded a score of 67.1 on the MMLU benchmark, a result considered competitive within the AI research community. The achievement has been cited as evidence that permissionless AI training can produce capable models.
Public support from prominent figures has also contributed to the token’s rise. Nvidia CEO Jensen Huang and investor Chamath Palihapitiya have both offered endorsements of Bittensor’s decentralized AI model. Their backing has helped raise the project’s profile among a broader audience of investors and technology observers.
Subnet tokens within the Bittensor ecosystem are priced through automated market makers that are backed by staked TAO. This structure means subnet tokens effectively function as leveraged positions relative to the main network’s token. As a result, their performance is closely tied to TAO’s own price movements and the overall health of the network.
The leveraged nature of subnet tokens means their continued rally depends heavily on Bittensor’s capacity to sustain strong AI model development. Analysts note that the ecosystem’s valuation remains sensitive to shifts in confidence around the network’s technical output. Any slowdown in meaningful AI progress could weigh on both subnet tokens and TAO itself.
One potential future catalyst identified for the network is the possible introduction of a TAO spot ETF. Such a product could open the token to a wider class of institutional and retail investors. For now, the ecosystem’s trajectory remains linked to both its AI achievements and broader market conditions surrounding decentralized technology projects.
Originally reported by CoinDesk.
