• Covenant-72B release boosted TAO, proving distributed AI training can match centralized models.
• Ecosystem growth from subnets like Targon increased adoption and use cases for TAO.
• Grayscale TAO Trust filing provided new investment access, supporting token demand and market confidence.

March 2026 has been an exciting month for Bittensor. The TAO token nearly doubled in price, climbing to roughly $317, and pushed the network’s market capitalization past $3 billion. This surge drew attention from traders and AI enthusiasts alike. Investors are curious about what fueled such rapid growth and whether TAO can maintain momentum. Strong technical progress and strategic ecosystem moves appear to be behind this rally.

Most people still dismiss Bittensor as an experiment; they're not paying attention to what's actually shipping

i) Covenant-72B just proved decentralized training works at 72 billion parameters
ii) Targon partnered with Intel on confidential compute
iii) Chutes is dominating… https://t.co/xwRxXMKf5J

— 0xSammy (@0xSammy) April 1, 2026

Covenant-72B Sparks Optimism

The biggest catalyst for TAO’s price surge was the release of Covenant-72B. This 72-billion-parameter language model was trained across more than 70 globally distributed nodes. The model scored 67.1 on the MMLU benchmark, putting it close to Meta’s Llama 2 70B in performance. Analysts see this as a proof point that distributed, permissionless AI training can compete with centralized systems. Critics had long claimed distributed training was too slow and fragmented.

Covenant-72B has shown that decentralized models can produce meaningful results, drawing confidence from the community and fueling investor interest. The top subnet token associated with this release, τemplar (SN3), soared over 400% in the past month. Its market cap now sits around $130 million, reflecting the enthusiasm for high-performing AI applications built on Bittensor. This success highlights how technological milestones can quickly translate into market activity when adoption potential aligns with real results.

Ecosystem Expansion and Institutional Moves

Beyond Covenant-72B, Bittensor’s broader ecosystem contributed to market momentum. Targon (SN4), a decentralized GPU compute marketplace run by Manifold Labs, secured a six-figure deal to power Dippy AI’s backend. Dippy AI serves 8.6 million users, showing real-world utility for Bittensor infrastructure. The GMCI AI Index, tracking major AI crypto tokens, has risen 48% since early February, with Bittensor accounting for nearly a quarter of that growth. Render (RNDR) and Artificial Superintelligence Alliance (ASI) make up the remainder, collectively driving attention to AI-focused crypto assets.

Institutional developments also played a role. On April 3, Grayscale filed an S-1 amendment with the SEC for a TAO Trust. This investment vehicle allows investors to gain exposure to TAO through trust shares, providing a regulated route for capital inflows. Currently, 68% of TAO’s 10.7 million circulating tokens are staked, indicating strong community commitment and reducing available supply.Bittensor’s March rally reflects both technical innovation and strategic positioning.

Covenant-72B proved the potential of decentralized AI models, while ecosystem partnerships and institutional interest reinforced TAO’s credibility. With strong adoption and a growing staking base, TAO demonstrates both technological promise and market relevance. Investors are now watching to see if this momentum can continue into April and beyond, as further developments may determine whether Bittensor sustains its remarkable gains.