Early on Monday, the supply of new cryptocurrency tied to Bittensor—a decentralized network of AI projects—dropped by half. The halving was the first the currency has experienced and came about by design, reflecting how Bittensor shares the same anti-inflationary architecture as Bitcoin. The event also serves a milestone for one of the most novel and ambitious cryptocurrencies to launch in years.
Currently, Bittensor has a market capitalization of $2.7 billion, according to the crypto analytics site CoinGecko. That pales in comparison to Bitcoin but is number 50 on the list of most popular cryptocurrencies. It also enjoys the backing of influential crypto billionaire Barry Silbert. At a time when AI is dominating the economy and the political discourse, Bittensor offers the promise of a decentralized alternative to Big Tech—provided it can keep picking up traction in the crypto world and beyond, and if its price holds up following the new drop in supply.
Here’s an overview of exactly what Bittensor is, who’s betting on its success, and what some crypto prognosticators say will come next after its halving:
On Monday at 8:30 a.m. New York time, Bittensor reduced the amount of daily tokens it issues from 7,200 to 3,600. Like Bitcoin, the supply of Bittensor’s cryptocurrency is capped at 21 million.
Sami Kassab, managing partner at Unsupervised Capital, a hedge fund dedicated to Bittensor, was similarly optimistic. “Halvings aren’t complicated. Historically, halvings have been bullish because there’s simply less inventory hitting the market, “ he said. “The same logic applies to TAO.”
Still, over the past 24 hours, the price of Bittensor’s cryptocurrency has dropped about 5.5% to $272. That doesn’t mean the halving was a bust since the market often prices in such events ahead of time and, in the case Bitcoin, has often spurred subsequent booms. When Bitcoin last halved in April 2024, its price hovered around $65,000 shortly afterwards. But, by the end of the year, the world’s largest cryptocurrency had rocketed to above $100,000.
This is Bittensor’s first halving. Its next will follow in late 2029, according to current projections.
