Through the Covenant-72B project, the Bittensor ecosystem successfully trained an AI model with 72 billion parameters on over 70 anonymous distributed nodes. This milestone achievement drove the price of TAO tokens up by 90%, from their March lows to $334. The entire training process did not rely on traditional data centers or tens of millions of dollars’ worth of InfiniBand clusters.

Instead, the SparseLoCo technology reduced communication delays between nodes by 146 times, fundamentally challenging the notion that internet connections are insufficient for training large-scale models. According to Monitored by Woofun AI, this training consumed 1.1 trillion tokens and was verified by the Gauntlet system. The final model scored 67.1 points in the MMLU zero-sample test, outperforming mainstream competitors like LLaMA-2-70B.

From a technological perspective, although pre-training in cutting-edge fields is still limited by VRAM synchronization and bandwidth constraints, Covenant-72B has proven that anonymous networks have the capability to train enterprise-grade models. This has shifted market focus from feasibility to development speed and the economic potential of inference services based on TAO. The modal characteristics of inference-based applications mean that high-end interconnection hardware is not required, enabling TAO-based inference services to quickly move from concept to commercial reality.

Analysis of price trends shows that the 200-day exponential moving average has provided strong support at $275. If weekly closing prices can remain above this level, it will confirm a reversal in the bullish trend and point towards the key resistance level of $379. With Bitcoin maintaining a strong position above $85,000, if TAO can successfully break through the $379 mark with a daily trading volume of 244,000 shares, market momentum could drive prices towards the $420-$450 range.

However, in the short term, market sentiment is likely to become more rational, and prices are expected to consolidate within the $300-$379 range. The real downside risk lies in a decline in Bitcoin’s momentum and if TAO prices fall below the $275 support level for an extended period, they could drop back into the $200 range.