TAO reached a three-month high after Raydium listed as a memecoin
Bittensor's TAO token surged by 13.4% on Monday, following Raydium's listing of TAO for trading on Sunday and the rise of a clone cryptocurrency called Buttensor.
9/7/20264 min read
Decision on Asset Valuation
Standard Solana memecoins are traded against SOL or USDC, meaning that memecoin buyers sell SOL or the stablecoin, and sellers receive SOL or the stablecoin. The pricing asset acts as a neutral infrastructure, unrelated to the memecoin's identity or narrative.
Bittensor's decision to use TAO as the pricing asset reversed that relationship. Every BUTT purchase required the buyer to hold TAO, and the transaction fees generated by the team were redirected to TAO purchases in the open market, which were then distributed to BUTT holders. The result was a vicious cycle of demand, where the volume of memecoin speculative activity automatically translated into TAO purchases regardless of any individual BUTT trader's opinion of Bittensor's decentralized AI network, its subnet architecture, or its long-term prospects.
That mechanism connects to the same structural innovation StonkFun built on Solana, where tokens were launched in pairs with crypto stocks and ETFs instead of SOL or stablecoins, with pair selection acting as part of the token's story. Buttensor applies a similar principle with an AI token as a valuation asset instead of a crypto stock, and redemption through fee recycling adds another layer of value accumulation that the stock-pairing model doesn't include.
The question of sustainability is simple: buying pressure on TAO only exists as long as BUTT trading volume persists. Memecoin trading volume is notoriously prone to returning to average levels, with most tokens seeing a sharp drop in volume within days or weeks of launch. If BUTT activity slows down, the demand for fee recycling also disappears, leaving the price of TAO supported only by whatever fundamental or speculative demand existed before the mechanism began operating.
Solana Liquidity Access
Raydium's official listing of TAO on Sunday came just one day before BUTT's launch and provides the infrastructure that makes pairing this memecoin possible. The listing connects Bittensor's decentralized AI infrastructure token to Solana's DeFi capital base and retail user base, which is significantly larger and more actively traded than Bittensor's native ecosystem.
This approach is commercially significant because Bittensor operates its own chain with its own subnet architecture, and TAO's liquidity was previously focused on Bittensor's centralized exchanges and native trading venues rather than on the high-throughput retail DEX infrastructure where Solana's memecoin economy operates. Listing on Raydium gives TAO access to Jupiter aggregator, Solana wallet integration, and the launchpad infrastructure that generates continuous new token launches, any of which can now select TAO as a quote asset following Bittensor's pattern.
Derivative positioning and overbought signals
The open interest of $428.57 million represents a three-month high and increased in line with the price increase. This combination typically indicates new capital flowing into long positions rather than short positions driving the price up. An increase in open interest coupled with a price increase is the more positive of the two models because it reflects new confidence rather than forced position closures.
The downside is the risk of leverage concentration. The large accumulation of leveraged long positions creates conditions for chain liquidation if TAO reverses sharply, turning an orderly correction into a rapid decline as margin calls force the closure of positions, pushing prices lower and triggering further liquidations. TAO's RSI has reached 70, a typical overbought level, suggesting a short-term correction may occur before any further price increases.
TAO is trading steadily above the 50-day, 100-day, and 200-day exponential moving averages, converging between $220 and $236. This convergence creates a technical support zone approximately 12 to 18 percent below the current price, and the convergence of the three moving averages within a narrow range means a break below that zone would represent a more significant trend reversal than a simple correction within an uptrend.
Assessment and Conclusion
Technical analysis suggests an immediate price target of $280 and the next resistance level at $300 if the upward momentum is maintained, with a bearish scenario at $234 if speculation about Raydium integration subsides. These levels are within approximately 25% of the current price, reflecting genuine uncertainty about whether the demand mechanism generated by Buttensor represents sustained buying or merely a temporary trend.
The most important variable is the trajectory of BUTT's trading volume in the coming weeks. Stable trading volume means that transaction fees are continuously reinvested in TAO purchases, which will establish a new, genuine demand channel, connecting individual investor speculation in Solana with the AI infrastructure token. A decline in trading volume means this mechanism stops contributing, and the price of TAO will return to being determined by the same factors that propelled it before listing: Bittensor subnet activity, AI industry sentiment, and overall cryptocurrency market conditions.
A notable precedent is StonkFun's own data, where on-chain measurements show that only 10.2% of STONK's trading volume is executed through the platform's signature stock pairing mechanism, with the majority traded through regular SOL pairs. If BUTT/TAO trading volume follows a similar trajectory toward regular trading pairs, the need for fee reuse will decrease proportionally even if BUTT itself remains actively traded.
Disclaimer: The content in this article is for informational, research, data analysis, and reference purposes only regarding the cryptocurrency market. All opinions, assessments, forecasts, or opinions reflect the author's perspective at the time of publication and do not constitute investment advice, solicitations for buying or selling, trading recommendations, advertising, marketing, or promotion of any financial products, services, or cryptocurrencies. Mentions of projects, tokens, protocols, exchanges, wallets, or cryptocurrency service providers (CASPs) are for research, analysis, or informational purposes only and should not be construed as endorsements, recommendations, or guarantees in any way. HCCVenture does not broker, advertise, market, promote, or connect users in Vietnam with any cryptocurrency services from CASPs. HCCVenture does not accept asset custody, investment mandates, manage assets, or execute transactions on behalf of clients. All investment decisions are made entirely through the reader's own research (DYOR), evaluation, and responsibility; HCCVenture is not liable for any losses or damages arising from the use of or reliance on the information presented in this article.
Compiled and analyzed by HCCVenture
Join our information channels: https://link3.to/holdcoincventure
Explore HCCVenture group
HCCVENTURE QUANT JSCO
© 2026 HCCVENTURE. ALL COPYRIGHTS RESERVED.
Connect with us
Popular content
Contact to us
Address: 8th Floor, Bach Dang Complex Building, 50 Bach Dang Street, Hai Chau Ward, Da Nang City, Vietnam.
Phone: 1900 1509
Gmail : sp_contact@hccventure.com
Disclaimer: The information on this website is for informational purposes only and should not be considered investment advice. We are not responsible for any risks or losses arising from investment decisions based on the content here.
TERMS AND CONDITIONS • CUSTOMER PROTECTION POLICY
ANALYTICAL AND NEWS CONTENT IS COMPILED AND PROVIDED BY EXPERTS IN THE FIELD OF DIGITAL FINANCE AND BLOCKCHAIN BELONGING TO HCCVENTURE ORGANIZATION, INCLUDING OWNERSHIP OF THE CONTENT.
RESPONSIBLE FOR MANAGING ALL CONTENT AND ANALYSIS: HCCVENTURE FOUNDER - TRUONG MINH HUY
Read warnings about scams and phishing emails — REPORT A PROBLEM WITH OUR SITE.
