$TAOthe native token of AI infrastructure construction company Bittensor, has fallen another 7% in value in the past 24 hours, trading at $238.91.
Just a week ago, the coin was trading at just over $300, but has since fallen 24.31% due to the recent Covenant drama and investor rotation to alternative coins.
Petitioner ($TAO): Fall from glory
On Friday, prominent subnet developer Covenant AI announced its withdrawal from Bittensor and its subnets, citing “centralized management.” Within hours, the token lost more than 25% of its value, and massive liquidations of long positions further contributed to the downward chain reaction.
It didn’t help that investors were moving to similar alternative tokens. $NEAR of the protocol $NEAR.
Other top-performing competitors include Internet Computer (ICP), Render (RENDER), and Artificial Superintelligence Alliance (FET). In the past 24 hours, the prices of these three companies have declined. $TAOthe maximum is 3.35%.
short term outlook
If the token dump continues, $TAO It could test the recent low of $230. Once the token regains $260, the price stabilizes.
Source: Trading View
As debate continues over the decentralized nature of the ecosystem, supporters note that the token has not yet shattered the confidence of all investors as it remains the top AI token by market capitalization (33rd place).
Underpinning this narrative is the institutional appeal of blockchain. In early April, prominent asset management firm Grayscale increased its AI fund’s allocation to Bittensar to 43.06%. The company also applied to convert Bittensor Trust into a spot ETF.
Additionally, Bittensor is increasing subnet capacity from 128 to 256 this month. This effectively increases the number of AI projects that can be built on the network.
However, the token has yet to recover above the psychological level of $300, which it breached in March, when NVIDIA CEO Jensen Huang praised the achievement.
The key events to watch are the network’s response to governance criticism, organizational acceptance, and community reaction to upcoming upgrades.
