In the last two months, the market capitalization of Bittensor's subnets has increased by 5000%, yet the TAO token has remained flat. We explore what drives this growth and the risks the project faces.
Overview of Bittensor
Bittensor and its TAO token are linked to the rapidly growing sectors of artificial intelligence and machine learning. Bittensor aims to be the 'Bitcoin' of AI, with a capped supply of tokens akin to Bitcoin's. The current issuance of TAO stands at 8.6 million, with a halving expected in Q3 or early Q4 of this year.
Reasons for Bittensor's Growth
The growth of Bittensor is tied to the booming field of AI and the unique subnets, each addressing specific challenges in AI and machine learning. Currently, there are over 100 subnets offering distinct solutions, which attracts both investors and users.
Project Risks for Bittensor
There are three main risks facing Bittensor. First, the competition from centralized AI models may hinder the implementation of decentralized solutions. Second, macroeconomic factors such as tariffs and regulatory changes could impact the market. Third, technical risks associated with the rapid growth of the ecosystem and the need to scale subnet solutions.
Despite potential risks, Bittensor is well-positioned to occupy a significant niche in the evolving AI sector, and its launch will continue to attract the attention of both users and investors.
