Bittensor’s Monthly Gain of 66% — Now, Two Factors Could Push TAO Above $450

At press time, Bittensor [TAO] is up 2.64% and entering the high zone. The recent movement comes as the asset is up 17.78% over the past week.

Market analysis shows that community interest in TAO is in line with its ecosystem update, which increases the likelihood of a sharp market rebound.

Ecosystem update turns out positive

Market sentiment for TAO remains bullish after the implementation of the dTAO upgrade, which effectively gives Bittensor network users the ability to vote, thereby improving governance efficiency.

The upgrade included the introduction of new tokens called Alpha Tokens, which are not traded on the secondary market but can only be exchanged for TAO.

This boosted the utility of TAO, which data shows is up 66% over the past month. Since then, the community has maintained optimistic expectations for the asset.

Community sentiment on CoinMarketCap shows that 83% of 57,500 TAO holders expect the asset to rise.

How will this impact TAO fundamentals?

There are a few key reasons why this upgrade is so important.

Since its launch, the demand for TAO has continued to grow as it has become the only way to purchase the Alpha tokens required to participate in voting activities.

This means that as the demand for these Alpha tokens increases for governance, it directly promotes the demand for TAO.

With this demand, TAO has been continuously issued to the market and is currently approaching an all-time high of 8 million.

Interestingly, this issuance has triggered more and more staking activity on the network. Currently, about 6 million TAO are staked.

Staking is a method for users to lock up their assets for a certain period of time, and in doing so, they can receive rewards.

With the change in market sentiment, TAO seems to be eyeing a significant price increase.

Currently, TAO is at a critical juncture with resistance at $389.6, which is one of the key levels it needs to break. A further move higher would see the asset hit its nearest target of $458 and further gains to $526.

It is worth noting that the price at each level could act as a resistance level, forcing the asset to pull back and allowing it to fall further.

If more ecosystem updates have a positive impact like this, it could continue this momentum to higher levels.