Bittensor (TAO) has surged more than 20% in the past week to trade near $330, with on-chain data from CryptoQuant showing sustained spot buyer dominance since the token bottomed at $154 in February — but analysts warn the broad-based rally carries growing downside risk.
TAO On-Chain Recovery
CryptoQuant's 90-day Spot Taker Cumulative Volume Delta, which tracks the balance between aggressive buyers and sellers on spot exchanges, has flipped decisively toward buy-side pressure. Weeks of consistent buying replaced months of sell-dominant activity, the data showed.
TAO's market capitalization has climbed back to roughly $3.4B.
The broader Bittensor subnet economy has also expanded, with CoinGecko data placing the combined market cap of subnet tokens at $1.4B.
Nearly every token in the network posted double-digit gains over the past 30 days. The share of TAO staked to subnets relative to total TAO staked has crossed 33%, a sign of growing confidence in the ecosystem.
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Maartunn's Risk Warning
Despite the bullish signals, CryptoQuant analyst Maartunn flagged a concern. Spot volumes, futures volume and retail participation are all heating up at the same time.
"When everything heats up at once… risk increases," he wrote.
The observation does not predict an imminent reversal. Still, Maartunn's analysis suggests the rally may have entered a zone where the probability of a pullback rises.
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