TAO climbs 25% toward $300 as Solana fee-buyback drives demand

TAO gained 25 percent over five sessions to a two-month high near $277, approaching the $300 resistance as Bittensor's Solana launch created fee-buyback demand.

CoinGlass data shows TAO open interest reached a three-month high of $428.57 million on Monday, while 24-hour futures volume climbed 158.61 percent to $868 million, reflecting new leveraged positions entering the market.

The demand mechanism stems from Buttensor (BUTT), a parody meme coin launched on Raydium, the Solana-based decentralized exchange, on Monday. The token's setup directs transaction fees to automatically purchase TAO and distribute the acquired tokens to BUTT holders, creating sustained buy pressure tied to speculative retail activity. TAO officially launched on Raydium the previous day, pairing the native Bittensor token with the meme coin.

The rally also coincides with renewed interest in AI-focused cryptocurrencies following the release of ChatGPT-6 Astra. Santiment data shows TAO's social dominance climbed from 0.05 percent on Thursday to 0.12 percent by Monday, with the Buttensor launch contributing to the increase in online discussion.

Bittensor has also rolled out several protocol upgrades in recent months that affect capital flows through the network. The V440 Emission Gate introduced a demand threshold for subnet emissions, shifting rewards toward subnets attracting stronger market demand. Subsequent releases covered root staking, alpha accounting, and conviction-based subnet ownership.

TAO trades well above its 50-day, 100-day, and 200-day exponential moving averages, clustered between roughly $220 and $236. The MACD remains positive above its signal line, suggesting upside momentum is intact. However, the Relative Strength Index at 70 on the daily chart places the token at the overbought threshold, leaving it vulnerable to a cooling phase.

A confirmed daily close above $300 would reinforce the bullish outlook and could open the path toward the September 13, 2025 high at $369. Conversely, rejection from $300 could trigger a pullback toward the 200-day EMA near $236, with the 100-day EMA at $222 and the 50-day EMA around $220 forming a deeper demand zone.

The sustainability of the fee-buyback mechanism depends on continued trading activity in BUTT. Rising open interest alongside an advancing price generally supports a bullish outlook, but the buildup in leveraged positions raises the risk of a liquidation cascade if TAO reverses sharply. The broader AI-token sector, including peers such as Fetch.ai and Render, has also drawn attention as ChatGPT-6 Astra renews demand for decentralized AI infrastructure.

This article is for informational purposes only and does not constitute investment advice.