Bittensor Price Drops Below $240
Bittensor price drops below $240 as investor confidence drops, triggered by Covenant AI's exit from the TAO ecosystem.
Bittensor's TAO Downfall
The price of Bittensor's native token TAO has dropped by almost 4% today, April 16, 2026, and is currently hovering around the $240 mark. This downfall was triggered by Covenant AI's exit, which raised questions about governance and control inside Bittensor.
Causes of the Price Drop
Governance Concerns
The main catalyst for the drop was Covenant AI's exit from the TAO ecosystem, which led to a 37,000 TAO sale by Covenant's founder. This move triggered panic selling, liquidations, and a broader loss of confidence among holders.
Market Structure
TAO's trading volume dropped suddenly, making the token more vulnerable to outsized price moves when sell orders hit a thin order book. According to data, the trading volume decreased by 34.82% in the last 24-hours.
Governance Debate and Market Outlook
A draft proposal known as BIT-0011 would introduce “locked stake” and “conviction,” allowing subnet ownership to shift toward participants who commit capital for longer periods. Technically, TAO now looks fragile as the price is hovering below the $250 area, with near-term downside risk toward the $230-$235 zone if selling continues.
Key Takeaways
- Bittensor price drops below $240 due to Covenant AI's exit and governance concerns.
- TAO's trading volume decreased by 34.82% in the last 24-hours, making it vulnerable to price moves.
- A draft proposal aims to introduce “locked stake” and “conviction” to shift subnet ownership toward long-term participants.
- TAO's price may recover if buyers step in with more confidence and reclaim the $260 level.
Frequently Asked Questions
What triggered the Bittensor price drop?
Covenant AI's exit from the TAO ecosystem triggered the price drop, raising questions about governance and control.
What is the current price of TAO?
The current price of TAO is around $239.02, with a drop of 3.74% in the last 24-hours.
