- TAO’s latest token system empowers users to actively engage in the governance system by staking the asset.
- The community remains optimistic about TAO’s upward trend, which could benefit the asset.
Recent data at press time indicated Bittensor [TAO] surging to higher levels with a 2.64% increase. This recent surge follows a 17.78% rally for the asset in the past week.
Market analysis suggests that the community’s interest in TAO is in line with its ecosystem update, potentially leading to a significant market rally.
Positive Impact of Ecosystem Update
The market sentiment towards TAO has been bullish since the implementation of its dTAO upgrade, which introduced voting rights to Bittensor network users, enhancing governance efficiency.
This upgrade included the launch of Alpha Tokens, a new form of tokens that can only be exchanged for TAO and are not traded on the secondary market.
Source: CoinMarketCap
This enhancement has increased TAO’s utility, evident from its 66% rally in the past month, as reported by CoinMarketCap. The community continues to hold bullish expectations for the asset.
Community sentiment on CoinMarketCap reveals that 83% of 57,500 TAO holders anticipate a rally for the asset.
Impact on TAO Fundamentals
This upgrade has been crucial for several reasons. Since its launch, there has been a growing demand for TAO, as it is the only means to acquire Alpha Tokens required for voting.
Source: Blockwork
The increasing need for Alpha Tokens for governance directly contributes to the demand for TAO.
This demand has led to a continuous issuance of TAO in the market, nearing a new all-time high of 8 million.
Source: Blockwork
Interestingly, this issuance has spurred increased staking activity on the network, with approximately 6 million TAO currently staked.
Staking involves users locking their assets for a specified period to earn rewards.
Chart Impact
On the chart, TAO seems poised for a substantial price rally as market sentiment evolves. Key levels on the chart have been highlighted using Fibonacci retracement lines by AMBCrypto.
Currently, TAO faces a critical juncture, with a resistance level at $389.6 that needs to be surpassed. Breaking this level could propel the asset towards targets of $458 and eventually to $526.
Source: TradingView
At each marked level on the chart, the price above could act as a resistance level, causing a pullback before potentially moving higher.
Positive ecosystem updates like this one could sustain the momentum, pushing TAO to higher levels on the chart.
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