Crypto markets bleed red, but subnets stand firm.

Will they hold steady or fall? Find out in our market analysis.

Let’s dive in.

After a strong performance in January, the Sum of Subnets has been stagnant for the past 14 days (-0.85%).

But the stagnation of the subnet market is not a bad thing.

On the contrary.

The crypto market has completely crashed over the last two weeks:

The subnet market held its ground during one of the sharpest drawdowns in the crypto market over the last two years.

Such resilience is precisely what should be expected from a leading market that tends to outperform once conditions calm down.

We use Mentat Minds indexes. Details on calculation are on this page. Mentat 5 and Mentat 15 cover the leaders, while Mentat 70 gives a wider picture of the subnet market.

Over the last two weeks:

After their strong performances in recent weeks, market stagnation has halted the rise of Covenant and Macrocosmos.

Over the last two weeks:

404‑GEN is inside a symmetrical triangle pattern.

The breakout will set direction.

Subnet market strength favors the upside scenario.

The subnet has experienced extreme volatility since the beginning of dTAO.

It will be important to break the purple triangle from above, as there is no real long-term support below to hold the subnet price.

Anyway, it is positive for the subnet to see volatility stabilize like this.

404-GEN is a subnet specializing in generating 3D assets from simple text prompts or images.

The subnet currently ranks 17th, with a market cap of $7.48 million, a volume of $65.77K in the last 24 hours, making it the 74th most traded token.

Trading volumes are currently low compared to its market cap.

The three largest wallets hold 46.21% of the supply. This is a very high percentage that could represent a risk.

Let's take a closer look at the behavior of these wallets:

The first and third wallets are closely linked.

The first sends several dozen TAO (in Alpha subnet 17) to the third every week. This third wallet belongs to Crucible Labs, which invested OTC in 404-GEN.

No sales have been to be reported on either portfolio.

The second portfolio belongs to Const (Bittensor Founder).

He recently bought more than 1,000 TAO Alpha worth of SN17.

Even though top holders control a large supply share and their behavior inspires confidence, the supply will still need to decentralize over time for the subnet's sustainability.

In addition, a fund like Crucible will eventually have to sell to generate revenue.

404-GEN has solid fundamentals, support from Bittensor’s founder, and keeps improving its product consistently.

Marketing may be the key: showcasing their work could attract new holders, increase volumes, and push the price higher.

Thank you for reading this newsletter. If you are interested in the subnet market, please feel free to click on the following link.

Disclaimer: This newsletter does not constitute investment advice. It is a tool designed to help you understand the Bittensor subnet market. Always do your own research before investing.