The artificial intelligence-based (AI) cryptocurrency, Bittensor, will face a halving moment this coming Saturday (14/12).
Ahead of the event, investment firm Grayscale released a prediction that TAO token prices could potentially enter into an upward or bullish trend.
In his latest research, Grayscale Analyst Will Ogden Moore explains that this event called halving will cut the number of new tokens circulating each day. Automatically, the daily production of TAO tokens will be reduced by half from 7,200 to 3,600 coins.
According to Moore, this drastic reduction will make such assets much scarce in the market, similar to a mechanism that has been proven successfully to raise Bitcoin prices.
“Bitcoin’s history shows that a reduction in supply can increase network value,” Moore said in his report.
However, Grayscale's optimism is not solely based on scarcity. From the demand side, the interest of large investors and institutions in the project is also high. Moore recorded the influx of fresh funds from investment firms such as Yuma Asset Management and Stillcore Capital.
In addition, the public company TAO Synergies is also known to keep these assets worth 12 million US dollars. The combination between the decreasing supply and the interest to buy snapper investors is what is believed to strengthen the TAO price hike trend in the future.
