AI-Crypto Surge: Bittensor ($TAO) Leads 19.27% Weekly Gain

Artificial intelligence-themed cryptocurrencies are experiencing a surge in bullish momentum. Tokens such as Bittensor ($TAO) and Artificial Superintelligence alliance ($FET) have seen gains exceeding 15% over the past week, with the upward trend continuing at the time of writing.

This rally is notable given that nvidia, the world’s largest AI computing company, recently announced it would exclude crypto-linked startups from its Inception program, which supports emerging tech businesses. Despite this setback, the AI crypto sector continues to thrive, with a combined market capitalization exceeding $32 billion.

Bittensor ($TAO) has emerged as a leader in the AI crypto sector, reaching a valuation of $3.24 billion and surpassing Near Protocol ($NEAR), which currently holds a market cap of $3.12 billion. The project was created as a decentralized peer-to-peer marketplace where users can share and monetize AI models. $TAO serves as the network’s native token, incentivizing participants to contribute to the development and expansion of decentralized AI technologies.

Ask Aime: What AI crypto tokens are surging despite NVIDIA's exclusion?

Since its inception, $TAO has exhibited significant price volatility, twice surpassing $700 in 2024 before retracing to around $200 on both occasions. As of the latest update, $TAO is trading near $374, reflecting a 19.27% increase over the past seven days and leading the rally among AI-related cryptocurrencies.

On-chain metrics indicate continued network strength. Over 6.2 million $TAO tokens have been staked, representing a 72% increase year-to-date out of a total of 8.4 million tokens in circulation. Bittensor is also expanding its reach beyond the crypto sphere. On January 27, the project integrated DeepSeek AI’s large language models (LLMs) into two subnets, granting users free access to DeepSeek’s capabilities for blockchain-related tasks.

Another significant milestone came when Grayscale Investments launched the Grayscale Bittensor Trust in October 2024. This investment vehicle offers institutional investors exposure to $TAO through a traditional security, eliminating the complexities associated with direct token custody. Grayscale currently holds over $10 million worth of $TAO for its clients.

Although the Trust’s Net Asset Value (NAV) currently stands at $6.99 per share, more than 50% below its December 2024 peak of $14.04, market sentiment suggests tao could be on track for a strong recovery. Following a clear bottom formation in the $160–$170 range, the TAO/USDT 4-hour chart shows a reversal in market structure. A five-wave Elliott Wave correction pattern appears to have been completed, indicating the end of the downtrend.

On March 10, $TAO broke above key resistance at $222.4 with increasing volume, confirming a shift toward bullish momentum. Since then, the price has steadily advanced, recently breaching the $375.2 resistance zone and consolidating near $373.3. Technical indicators continue to support the bullish bias. The MACD remains in positive territory, with the MACD line trading above the signal line, although narrowing slightly, which is a sign of sustained upward momentum despite minor consolidations.

Looking ahead, the next major resistance level is around $498.8. If bulls maintain the current momentum and hold support above $375.2, a rally toward this next target appears achievable. Conversely, a pullback could see TAO retest the $320–$330 zone before attempting another leg higher.