Bittensor\u2019s most recent achievement centers on its Templar subnet, which reportedly trained Covenant\u201172B, a 72\u2011billion\u2011parameter LLM, through a decentralized collaboration involving more than 70 contributors using commercially available hardware.\u00a0<\/p>\n
That accomplishment is noteworthy because large\u2011scale model training normally requires substantial capital and tightly controlled infrastructure; proving such a model can be trained in a distributed manner lends credibility to Bittensor\u2019s thesis that subnets can marshal meaningful compute to build economically valuable services.<\/p>\n
Bittensor At Risk If Subnets Don\u2019t Scale<\/h2>\n
Carchidi also points to TAO\u2019s tokenomics as a potential upside factor. The chain\u2019s supply dynamics partially resemble Bitcoin\u2019s (BTC), a design Cardichi finds appealing for long\u2011term appreciation if the network continues to produce in\u2011demand services.\u00a0<\/p>\n
Still, he cautions that the project faces a critical shortcoming: so far, its subnets have not demonstrated robust, sustainable demand that translates into meaningful external revenue.<\/p>\n
The current economics underline that concern. The protocol\u2019s distribution of newly minted TAO results in the top subnet receiving roughly $52 million in annualized subsidies from the chain, while that subnet brings in at most about $2.4 million in outside revenue.\u00a0<\/p>\n
Across the entire Bittensor network, demand\u2011side revenue ranges from approximately $3 million to $15 million a year, set against a token market capitalization near $3.3 billion.\u00a0<\/p>\n
Cardichi concluded that those figures create what he deems as \u201ca valuation mismatch\u201d that could put TAO\u2019s price at risk if the subnets fail to scale revenue significantly.<\/p>\n
Key Price Levels To Watch<\/p>\n
Technical levels add another layer to the outlook. TAO was trading around $308 at the time of writing, with immediate resistance positioned near $315 after failing to consolidate above it during last week\u2019s rally.\u00a0<\/p>\n