Key Takeaways
- The TAO token experienced a near 100% price increase throughout March, reaching roughly $317 with a valuation exceeding $3 billion
- Subnet 3 within the Bittensor network unveiled Covenant-72B, an AI model with 72 billion parameters developed across more than 70 decentralized nodes
- Covenant-72B achieved a 67.1 score on the MMLU evaluation, comparable to Meta’s Llama 2 70B performance
- Grayscale submitted an amended S-1 registration statement to the SEC for establishing a Bittensor (TAO) investment trust
- More than 68% of the total 10.7 million TAO tokens in circulation are locked in staking
Throughout March 2026, Bittensor’s native TAO token experienced remarkable growth, with prices climbing close to $317ārepresenting an approximate doubling in value. This surge elevated the network’s total market capitalization beyond the $3 billion threshold.
This price appreciation aligned with a significant technological breakthrough within the Bittensor infrastructure. The development team behind Subnet 3 announced Covenant-72B, a massive 72-billion-parameter artificial intelligence language model developed through collaborative training across over 70 geographically distributed computing nodes.
When evaluated using the MMLU benchmarkāan industry-standard assessment for measuring large language model capabilitiesāCovenant-72B achieved a score of 67.1. This performance positioned it competitively alongside Meta’s established Llama 2 70B model.
Industry observers regarded this achievement as groundbreaking evidence that decentralized, permissionless artificial intelligence training can deliver results comparable to traditional centralized approaches. Previously, distributed training methodologies faced skepticism due to concerns about efficiency and coordination challenges.
The primary subnet token associated with this breakthrough, Ļemplar (SN3), experienced extraordinary growth, surging more than 400% over the preceding month and attaining a market capitalization approaching $130 million.
Broader Network Expansion and Market Momentum
Beyond the Covenant-72B announcement, additional developments across the Bittensor subnet infrastructure contributed to ecosystem momentum. Targon (SN4), a decentralized GPU computing platform operated by Manifold Labs, announced a substantial six-figure commercial agreement to provide computational infrastructure for Dippy AI’s operations, which supports a user base of 8.6 million.
The GMCI AI Index, designed to track leading cryptocurrency tokens focused on artificial intelligence applications, recorded a 48% increase since early February. Bittensor represents 24.89% of this index’s composition and functioned as the primary catalyst for this performance.
Additional constituents of the index include Render (RNDR) and Artificial Superintelligence Alliance (ASI), with these three projects collectively accounting for more than 71% of total index weighting. However, despite recent positive momentum, the index continues trading 84% below its peak valuation established during the first quarter of 2024.
Institutional Interest: Grayscale’s TAO Trust Application
On April 3, 2026, Grayscale Investments filed an amended S-1 registration statement with the United States Securities and Exchange Commission for a Bittensor (TAO) investment trust. This proposed financial vehicle is designed as a passive investment instrument that maintains custody of TAO tokens, offering investors exposure to token price movements through tradeable trust shares.
The current circulating supply of TAO tokens stands at 10.7 million units. Remarkably, more than 68% of this available supply is currently committed to network staking activities.
As of April 3, 2026, the Covenant-72B model launch and Grayscale’s regulatory filing represent the most significant recent catalysts influencing TAO token performance and market sentiment.
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