Bittensor (TAO), the token of the decentralized AI network, has made a strong recovery from the bottom in February. On-chain data shows that the increase may continue.
CryptoQuants data on Spot Taker Cumulative Volume Delta (CVD) over 90 days, which measures the balance between buyers and sellers on spot exchanges, shows a clear shift towards buying since the $154 level.
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The diagram shows several weeks with green bars where there were previously red sell signals. It indicates that real spot buyers are steadily purchasing the supply.
The token is now trading around 330 USD. The price rose more than 20% last week, and the total market capitalization has increased to about 3.17 billion USD.
The broader Bittensor ecosystem has also developed positively. According to data from CoinGecko, the total market capitalization for subnet tokens has risen to 1.4 billion USD. Nearly all tokens in the network have increased by at least double-digit percentages over the past 30 days.
The share of TAO that is tied to subnets compared to the total amount of staked TAO is now over 33%. This shows that confidence in the subnet economy is growing.
Despite the positive situation, CryptoQuant analyst Maartunn points out that all Bittensor trading activity, including spot volumes, futures trading, and retail participation, is increasing at the same time.
“When everything heats up at the same time... the risk increases,” he wrote.
This does not mean that a turnaround is near. But it suggests that the risk of the price going down has increased now.