The ecosystem's smaller tokens are acting as leveraged bets on TAO, with multiple subnet tokens posting 200-400% monthly gains.
The ecosystem's smaller tokens are acting as leveraged bets on TAO, with multiple subnet tokens posting 200-400% monthly gains. Bittensor's TAO token has surged about 90% in March, while subnet tokens in its ecosystem have rallied even more sharply, lifting their combined market value to roughly $1.
47 billion. The gains are fueled in part by Subnet 3's Covenant-72B model, a permissionlessly trained large language model that posted a competitive 67.1 MMLU score, and by public endorsements of Bittensor's decentralized AI approach from Nvidia CEO Jensen Huang and investor Chamath Palihapitiya. Because subnet tokens are priced via automated market makers backed by staked TAO, they act as leveraged bets on the main network, leaving their rally dependent on Bittensor's ability to keep producing strong AI models and on potential catalysts such as a future TAO spot ETF. Bittensor's TAO has rallied 90% so far this month, and the tokens in its ecosystem are running up even harder. The network's subnet token category reached a combined market cap of $1.47 billion on Monday, with $118 million in 24-hour trading volume, according toin March, but the subnet tokens are where the real action is. Templar, the token for Subnet 3, gained 444% in 30 days. OMEGA Labs rose 440%. Level 114 added 280%. BitQuant gained 230%. Even the larger subnet tokens posted significant returns, with Chutes up 54% and Targon gaining 166%. Bittensor is a decentralized network that creates marketplaces for artificial intelligence. Instead of one company building and controlling AI models, Bittensor incentivizes a global network of participants to contribute computing power, data, and machine learning models in exchange for TAO, the network's native token. The network is divided into specialized sub-networks called subnets, each focused on a different AI task, from training language models to running compute infrastructure to cybersecurity analysis. There are currently 128 active subnets, each with its own token whose value is tied directly to the amount of TAO staked into it.Subnet 3 produced Covenant-72B, a large language model trained permissionlessly across Bittensor's decentralized network by over 70 contributors using commodity internet hardware. The model was trained on 1.1 trillion tokens and achieved a 67.1 MMLU score, confirmed in a March 2026 arXiv paper. That puts it in competitive range with Meta's Llama 2 70B, a model built by one of the most well-resourced AI labs in the world. Subnet 3, called Templar, is Bittensor's decentralized AI training network. Miners contribute GPU compute power and compete to produce useful training gradients for large language models, while validators evaluate the quality of their contributions and distribute TAO rewards accordingly. Think of it as a way to train AI models the same way bitcoin mines blocks, with distributed participants around the world contributing hardware and getting paid for useful work.Bittensor's approach on the All-In Podcast on March 20, framing decentralized AI training as complementary to proprietary models. Coming from the CEO whoseThe subnet token mechanics explain why the gains are so outsized relative to TAO itself. Since Bittensor launched dynamic TAO in February 2025, each subnet operates its own automated market maker with a native token whose valuation is determined by the TAO staked into that subnet's reserves. When TAO appreciates, every subnet's reserve becomes more valuable, inflating token prices and attracting more stakers. The relationship is reflexive and amplifies moves in both directions. With TAO at roughly $3 billion in market cap and individual subnet tokens ranging from $1 million to $137 million, the subnet tokens function as leveraged bets on the parent protocol. The network plans to expand from 128 to 256 active subnets later this year, which would bring a new wave of token launches. A potential regulatory decision on converting the Grayscale TAO Trust into a spot ETF could provide institutional access by late 2026. And Digital Currency Group subsidiary Yuma is already contributing to 14 different subnets, suggesting the smart money is treating this as infrastructure rather than speculation. Whether the subnet rally sustains depends on whether Bittensor keeps producing competitive AI models or whether Covenant-72B was a one-off that got lucky timing with a Huang endorsement.As stablecoins evolve into core financial infrastructure, North America leads. This report maps the regulation, market shifts, and players driving adoption.Stablecoins are entering their third phase of evolution - the institutionalization era - becoming increasingly embedded into core financial infrastructure. As institutions prioritize transparency and compliance, regulated issuers like USDC, RLUSD, and PYUSD are steadily gaining share with RLUSD surpassing $1B in market cap within its first year. North America, leading in regulatory frameworks and institutional distribution, is at the center of it all. In an interview with CoinDesk, Aave Labs CEO Stani Kulechov reflected on the governance debates in the Aave ecosystem, as well as what’s to come for the network.In an interview with CoinDesk, Aave Labs founder Stani Kulechov framed ongoing governance disputes and contributor exits as part of a natural evolution, as the community debates how decentralized the protocol should remain versus becoming more coordinated.Mar 28, 2026
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