Zama Protocol (ZAMA) is up more than 27% in the past 24 hours, leading the privacy sector in daily gains.
Daily volume rose more than 185%, reaching $100 million, roughly equivalent to the token’s market cap of $110.38 million. However, the market cap is five times lower than its fully diluted value (FDV) of $564 million.
Liquidity is moderate, with a liquidity to market capitalization ratio of 2.51%. This means that the token is safe for ordinary retail investors, but institutional traders face challenges with implementation.
Notably, its token economies show that 2.2 billion ZAMA tokens are in circulation out of a total supply of 11.19 billion. This data shows that only 19.66% is in circulation, while the remaining 80% is issued daily.
According to CoinMarketCap, 4.06 million ZAMA worth $200,000 are put on the market daily. Mega token openings worth 1.98 billion ZAMA are scheduled once a year until 2030.
What is fueling the price of ZAMA?
Although the TGE event will occur in early February 2026, the privacy protocol has received support from some whales and institutions.
For example, Whale is relentlessly accumulating from the Kraken exchange. In the past two days, the whale has bought over 28 million ZAMA with the last transaction amounting to 14.26 million tokens worth $571,000.
Over the past 125 days, the wallet has acquired a total of 98.18 million ZAMA tokens worth $3.93 million. This indicates that the released supply is being absorbed strongly, explaining why the altcoin is rising despite daily token unlocks.
Furthermore, institutions like Multicoin Capital are buying altcoins. This revelation comes from Co-Founder and Managing Partner at Multicoin Capital, Tushar Jain. Echoes the specificity of the protocol.
In a post on X, Tushar Jain books,
Organizations need privacy to function. That’s why we long $ Zama and A dollar like you. Zama opens a special challenge…
Another driving factor was social sentiment. The altcoin was trending in first place on CoinGecko and second on CoinMarketCap. Its weekly gains exceeded 41%, which boosted social sentiment.
Can Zama continue to rise?
The daily chart showed that ZAMA broke out of the uptrend channel it had respected since TGE in February.
It hit a new all-time high at $0.05171, with bulls showing that they are gaining momentum according to the MACD bars. CVD is also mostly bullish with over 40 million ZAMA bought on Binance’s spot market.
A 4-day consecutive rally that started at the $0.0300 trendline support level broke the upper trendline resistance. However, a larger community can support such gatherings, but the number of ZAMA holders is as high as 7.64 lakh.
Moreover, there is a possibility of a post-breakout correction, which could take the price to $0.045 or lower.
Final summary
- Zama Protocol surged 27% in 24 hours as whales and institutions continue to accumulate ZAMA.
- ZAMA price broke through the uptrend channel but is now facing selling pressure from daily opens.
