Zama Protocol (ZAMA) led the privacy sector in daily gains, rising more than 27% in the last 24 hours.
Daily volume increased over 185% to $100 million; This is almost equal to the token’s market value of $110.38 million. However, its market cap is 5 times lower than its fully diluted value (FDV) of $564 million.
Liquidity is at a medium level and the liquidity/market value ratio is 2.51%. This means the token is safe for average retail investors but institutional investors face implementation challenges.
It is worth noting that tokenomics 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 published daily.
According to CoinMarketCap, 4.06 million ZAMAs worth $200,000 are released every day. The massive token unlock of 1.98 billion ZAMA is planned to be unlocked annually until 2030.
What is driving ZAMA’s price up?
Even though the TGE takes place in early February 2026, the privacy protocol has received support from some whales and institutions.
For example, a whale is constantly accumulating from the Kraken exchange. Over the past two days, the whale purchased more than 28 million ZAMAs, with the last transaction of 14.26 million tokens worth $571 thousand.
Over the past 125 days, the wallet has purchased a total of 98.18 million ZAMA tokens worth $3.93 million. This shows that the released supply is being aggressively absorbed and explains why the altcoin is rising despite daily token unlocks.
Moreover, institutions such as Multicoin Capital also purchase altcoins. The statement came from Tushar Jain, co-founder and managing partner of Multicoin Capital. It reflects the privacy of the protocol.
Tushar Jain in a post about X wrote,
Institutions need privacy to operate. That’s why we’re tall $TIME And $ZEC. Unlocks time-specific identification…
Another driving factor was social sensitivity. The altcoin is ranked #1 on CoinGecko and #2 on CoinMarketCap. Its weekly earnings exceeded 41%, strengthening social awareness.
Can ZAMA continue to rise?
The daily chart showed that ZAMA has broken out of the ascending trend channel it has respected since the TGE in February.
It has printed a new all-time high at $0.05171 and the bulls are showing that they are gaining momentum based on the MACD bars. CVD is also in a mostly bullish trend, with over 40 million ZAMAs purchased on Binance’s spot market.
A 4-day consecutive rise that started at the trendline support level around $0.0300 led to a breakout of the upper trendline resistance. However, a larger community can support such rallies but the number of ZAMA holders is 7.64 lakh.
Moreover, there is also the potential for a post-breakout pullback that could push the price towards $0.045 or below.
Final Summary
- Zama Protocol is up 27% in 24 hours as whales and institutions continue to accumulate ZAMA.
- ZAMA’s price broke out of an ascending trend channel but is currently facing selling pressure due to daily locks.
