TAO Price Has Dropped by Over 60% — But On-Chain Data Tells a Different Story

March 2026 is showing intriguing signals around Bittensor (TAO), the cryptocurrency of a decentralized AI network. Attention toward this altcoin has returned even though its price has fallen more than 60% since last year.

In addition, TAO’s staking activity has remained steady despite the price decline. This trend reflects long-term confidence among holders.

How Is Bittensor (TAO) Attracting Attention in March?

A recent report from LunarCrush shows that TAO’s social engagement surged 5,231% within just one week. Trading volume also increased 133% compared with the six-month average.

Bittensor (TAO) has consistently appeared on CoinGecko’s trending list in recent days. This trend reflects renewed search interest and information queries about the project.

Recent speculation has also boosted attention. Some discussions suggest that subnet tokens on Bittensor could be listed on exchanges such as Coinbase and Robinhood.

However, the report also notes that market sentiment stands at only 28%, a record low.

Data from BeInCrypto shows that TAO’s price has dropped more than 60% from last year’s peak. The token currently trades around $195. This decline explains the negative sentiment reported by LunarCrush.

However, this clear divergence between rising attention and pessimistic sentiment may represent a classic sign of an accumulation phase. Smart investors may quietly accumulate while the broader market remains cautious.

“Low sentiment with rising price and volume is a textbook accumulation signal. If sentiment recovers toward its 86% average while price holds above $190, that’s a setup.” — LunarCrush reported.

Staking data reinforces this argument. TAO’s staking ratio remains very high. Currently, about 68% of the TAO supply is staked, according to data from TAOStats.

When investors stake or delegate TAO to validators on subnets—specialized AI sub-networks—they help validators verify the quality of AI outputs generated by miners. In return, validators distribute emission rewards, which are newly minted TAO tokens, based on each participant’s staking share.

Charts from TAOStats show that the amount of staked TAO has remained stable even as prices declined and token emissions increased. This pattern suggests that most stakers are not selling. Instead, they choose to stake and earn rewards.

“This reflects long-term conviction and growing participation from validators and miners. It also suggests that more participants are entering the $TAO ecosystem.” — Investor Tanaka commented.

Another important factor supporting the accumulation narrative involves Grayscale Investments. The large investment firm is attempting to convert the Grayscale Bittensor Trust (GTAO) into a TAO ETF, following a path similar to that it previously pursued with the Grayscale Bitcoin Trust (GBTC).

If successful, this move could open the door for institutional capital to flow into TAO. Such a development may create strong incentives for both retail and institutional investors to accumulate the token now.

“Friendly reminder that TAO is still cheap.” — Investor Wizz stated.

However, the positive discussions emerging in March still appear insufficient to reverse TAO’s decline of more than 60%. Accumulation activity may still be underway. Yet holders may need to accept short-term losses while the broader altcoin market environment remains weak.