TAO Rally: What’s Driving Bittensor Price Surge Over 35%

Bittensor’s native token, TAO, is back in the spotlight after making a sharp recovery in April. In fact, the token has bounced back by over 80% this month alone and jumped an impressive 30% in the past week. Today, the Bittensor price surged by over 35%, but what’s behind this sudden TAO rally? What is the investors’ ideology on TAO growth?

Reason For Bittensor Price Growth

A major catalyst seems to be the growing interest in Bittensor’s subnets, small communities or groups building new AI systems using its network. According to tech entrepreneur Mark Jeffrey, the subnet market cap exploded from just $50 million to $500 million in a matter of weeks. That’s a massive 10x surge in only 9 weeks. And here’s the interesting part: to build on a subnet, groups have to lock TAO tokens. That creates direct demand for TAO, and with more subnets coming up, this demand could be one of the biggest reasons why we’re seeing the Bittensor price surge. 

$TAO Subnet total market cap just crossed $500M.

That's a full 10x from 9 weeks ago. https://t.co/rJKBLENeOF pic.twitter.com/fv1HwxoAY8

— Mark Jeffrey (@markjeffrey) April 20, 2025

Bittensor’s Subnet Growth Fuels Demand

Between January and April, the number of subnets on Bittensor jumped from 65 to 95, a 46% increase in just a few months. After a quiet January, things really started to pick up, and that momentum is now showing in the TAO price.

But analysts believe there’s still a long way to go. DeFi Jeff, a well-known crypto commentator, pointed out that only 6% of TAO is currently locked in subnets. That’s a small slice of the overall supply, meaning there’s plenty of room for growth if more developers and projects start using Bittensor.

Even some heavy hitters in the investment world are taking notice. Hedge funds like Unsupervised Capital, YumaGroup, and even DCG are reportedly increasing their exposure to the Bittensor ecosystem. That kind of backing shows long-term confidence, even if we’re just scratching the surface of what’s possible with these AI-powered blockchain projects.

Caution Flags: Volume Drops & Leverage Rises

Now, not everything is smooth sailing. While TAO has seen solid price gains, there are signs that the rally may not be fully sustainable, at least in the short term. Take trading volumes, for instance. According to Coinglass, Binance saw a $214 million drop in TAO trading volume over the past week. That’s a pretty big fall for a token that just surged 30%.

Then there’s exchange netflow data. Nearly $390,000 worth of TAO was sent to Kraken, likely for selling. Meanwhile, Binance users were still bullish, buying around $192,000 worth of TAO, but overall, it points to some selling pressure as traders took profits.

Add to that the flat CVD (Cumulative Volume Delta), a signal that spot market buying has slowed, and the picture becomes a little cloudy. While Open Interest (OI) doubled, suggesting more trading activity, it also means the rally was mostly driven by leverage. That kind of growth can be shaky unless spot demand starts catching up soon.

Bittensor Price Prediction: Can TAO Go Up in 2025?

From what we’re seeing, TAO has strong potential for long-term growth, especially if the AI narrative continues to heat up in crypto. Subnets are still in early stages, and only a fraction of TAO is locked. If that changes, and we see even more AI projects building on Bittensor, the token could see another leg up.

The growing interest from institutional investors is another green flag. Price pullbacks can’t be ruled out with trading activity leaning heavily on leverage and spot buying slowing down. But for those looking ahead to 2025, TAO might be one of the top tokens to watch in the AI x blockchain space. The recent TAO rally has been impressive, but it’s important to look beyond just price charts. With real growth in subnets, rising developer interest, and long-term investor backing, Bittensor is building something serious. Keep an eye on spot demand and subnet expansion to understand future Bittensor price predictions.

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