Headline: TAO jumps ~34% as Grayscale’s new Bittensor Trust and a supply halving fuel a fresh narrative for decentralized AI Bittensor’s native token TAO exploded higher this week, climbing roughly 30–34% after two major catalysts converged: Grayscale launched a regulated vehicle to give traditional investors exposure to the network, and Bittensor completed its first halving in mid‑December — cutting daily TAO emissions by about half. What happened in the market - The Grayscale Bittensor Trust (now trading OTC under the ticker GTAO) provided the first easy, regulated route for non‑crypto-native investors to access TAO. The Trust tracks TAO’s price using Coin Metrics’ real‑time reference rate, net of fees, and Grayscale has already filed to convert it into a spot ETF — a step that could draw further institutional flows. - TAO’s price broke out of a recent range as buying accelerated, clearing key moving averages and briefly testing the upper Bollinger Band — classic signs of a strong, organic impulse move. That spike has since cooled; at the time of writing TAO had pulled back toward the $280 area and the RSI eased from near‑overbought levels, suggesting short‑term profit‑taking rather than an outright trend reversal. Why the timing matters - The mid‑December halving reduced TAO issuance by about 50%, tightening supply and pitching Bittensor into a scarcity narrative similar to Bitcoin’s. Combined with Grayscale’s product, that mix of reduced supply and easier institutional access likely amplified buyer interest. - As Bitcoin and crypto become more mainstream, decentralized AI projects like Bittensor are gaining attention as an alternative to large, closed Big Tech models. Instead of a single company owning an AI system, Bittensor coordinates a network of subnets where competing AI models are rewarded in TAO based on performance — spreading incentives across contributors and token holders. The upside case - For investors, TAO provides a play on AI growth that doesn’t rely exclusively on Big Tech’s proprietary stacks. Institutional vehicles such as Grayscale’s Trust (and a potential future ETF) could bring deeper liquidity and a new buyer base. Reduced token issuance after the halving strengthens the supply side argument. The risks and caveats - Decentralized AI is still experimental. There’s no guarantee that institutional interest converts into sustained real‑world usage or adoption beyond speculation. - Regulatory frameworks for AI‑focused tokens remain murky, adding uncertainty for large investors and institutions. - Competition in decentralized AI is intensifying, with multiple projects chasing similar stories — which could dilute TAO’s market share if rivals gain traction. Bottom line TAO’s recent rally was driven by a potent mix of reduced supply and the arrival of a regulated investment vehicle. That combination has thrust Bittensor into the spotlight, but the project remains early stage and faces regulatory and competitive headwinds. Traders should watch price action around key technical levels and follow any developments around Grayscale’s ETF filing and real‑world adoption of Bittensor’s network. This article is informational and not investment advice. Cryptocurrency trading carries high risk; do your own research before making decisions. Read more AI-generated news on: undefined/news

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