Bittensor (TAO) and Solana (SOL) named as promising coins for a massive surge... Has altseason truly begun?

▲ Bittensor (TAO) / AI-generated image

The structural strength of Bitcoin (BTC) and the inflow of institutional funds are improving the overall health of the virtual asset market, signaling the start of a full-fledged altcoin season.

The cryptocurrency-focused YouTube channel Altcoin Daily, in a video uploaded on September 19 (local time), diagnosed that the market has entered a new supercycle, citing the stockpiling of Bitcoin by various governments and the expansion of decentralized artificial intelligence (AI) and on-chain asset tokenization ecosystems. Matthew Sigel, Head of Digital Asset Research at VanEck, stated, "The number of countries mining or holding Bitcoin at a national level is increasing every year, currently reaching 25 countries," adding, "This week, Senegal also began piloting Bitcoin mining at the state government level." Sigel explained that the intrinsic value of Bitcoin can be measured through the opportunity cost of electricity, and that the continuous buying pressure from sovereign wealth funds and institutional investors is firmly supporting the bottom.

The establishment of a transparent, institution-centric leverage structure was also cited as a key factor in enhancing market stability. In past cycles, entities like FTX, Genesis, BlockFi, and Celsius, which faced bankruptcy, accumulated opaque bad debt in regulatory blind spots. In contrast, analysis shows that leverage is now transparently revealed within regulatory frameworks, such as the Chicago Mercantile Exchange (CME) futures market and Strategy's issuance of convertible bonds, significantly reducing systemic risk. Sigel emphasized that as speculative overheating has been curbed, Bitcoin's volatility has been reduced to about 50% of what it was four years ago.

The inflow of institutional funds is rapidly spreading to key altcoins, including Solana (SOL). On September 15, while Bitcoin and Ethereum (ETH) spot ETFs experienced net outflows, Solana spot ETFs saw continuous net inflows. The U.S. Securities Exchange Commission (SEC) issued a temporary conditional exemption for on-chain trading of tokenized U.S. stocks, highlighting the growth potential of decentralized financial infrastructure. Last week, the number of transactions on Solana-based decentralized exchanges (DEXs) surpassed 28 million, reaching 88% of Nasdaq's weekly trading volume of 236 million transactions, and even exceeding the number of transactions on the New York Stock Exchange.

In the decentralized artificial intelligence sector, Bittensor (TAO) is gaining attention as the unique leader. Bittensor has adopted a Proof of Useful Work system that applies Bitcoin's Proof of Work method to perform actual AI model training and computations across 128 subnets. The total supply is designed to be 21 million TAO, identical to Bitcoin, with approximately 11.5 million TAO issued to date. It has an economic structure that requires mandatory purchase and deposit of tokens to acquire subnet ecosystem tokens or participate in the network, positioning it to be the biggest beneficiary of the spread of open artificial intelligence.

While the possibility of short-term price adjustments remains, the prevailing assessment is that the long-term mega-trend is firm. Protocols driven by real demand, such as the native token of the on-chain derivatives trading platform Hyperliquid, which surpassed $90 and hit an all-time high, are leading the market. As the combination of real-world asset tokenization and artificial intelligence accelerates, the structural upward trend across altcoins is expected to gain further momentum.

[Key Article Summary]

-The number of countries mining or holding Bitcoin (BTC) as national treasury has increased to 25, with capital inflows from institutions and sovereign wealth funds supporting the fundamentals.

-Unlike previous cycles, transparent leverage is maintained within the CME futures and regulated institutional frameworks, reducing Bitcoin price volatility by 50%.

-Solana (SOL) DEX weekly trading volume has reached 88% of Nasdaq's, and decentralized AI tokens like Bittensor (TAO) are driving the altcoin market.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*