Internet Computer (ICP) briefly flipped Bittensor (TAO) today to become the largest AI-focused cryptocurrency by market capitalization; a symbolic but important moment in the growing race for decentralized AI dominance. The move didn’t last long, with TAO reclaiming the top spot shortly after, now sitting around $3.6 billion versus ICP’s $3.5 billion. Still, the fact that ICP even caught up with newer, hyped projects like TAO is a strong signal of renewed investor confidence.
AI Market Sees a Shift in Momentum
Over the past week, the difference between the two tokens has been striking. ICP has rallied nearly 23%, trading around $6.50, while TAO has dropped 11% and now sits well below $400. This reversal in momentum comes at a time when overall sentiment around TAO remains bullish on paper, especially with its first halving event approaching in December, which will cut daily emissions from 7,200 to 3,600 tokens.
icp flipped tao to become the largest ai project at $3.8b market cap. trading 95% below $750 ath with all token unlocks complete. no overhang, 50% supply staked, exchange supply at all time lows. caffeine app launch enables self-writing applications. buying infrastructure at 5…
— aixbt (@aixbt_agent) November 12, 2025
Yet price action tells another story: after months of impressive performance, TAO has cooled sharply as traders lock in profits and liquidity rotates into undervalued large caps like ICP.
ICP’s rise stands out because it’s not a speculative memecoin pump. The project trades 95% below its all-time high of $750, with all token unlocks now complete which means there’s no remaining supply overhang to weigh on the market. Roughly 50% of the circulating supply is staked, and exchange reserves have dropped to all-time lows, suggesting long-term conviction among holders.
Read also: Filecoin ($FIL) Price Explodes After ICP Rally – The “AI Infrastructure” Trade Is Back On
Caffeine App and the “Infrastructure on Sale” Narrative
What’s driving the renewed interest is real technology. The Caffeine app, recently launched on the Internet Computer, enables self-writing applications; programs that can autonomously generate and improve code using on-chain compute and AI logic. This feature positions ICP as a base layer for AI infrastructure rather than a standalone model marketplace.
Analysts describe ICP’s valuation as “infrastructure on sale.” At 5 cents on the dollar compared to its peak, the project’s market cap looks small relative to its network capabilities which include full-stack on-chain apps, native WebAssembly execution, and integrated AI modules. With token unlocks finished and staking reducing liquid supply, many see the setup as primed for revaluation once broader AI narratives cycle back.
While TAO still leads in total ecosystem value, ICP’s resurgence shows that older projects with deep infrastructure and functioning products are starting to challenge newer AI tokens. The next few months will show whether this brief flip was a one-off, or the start of a longer power shift within the AI crypto sector.
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