Zama Protocol [$ZAMA] is up more than 27% in the past 24 hours, leading the privacy sector in daily gains.
The daily volume has surged by over 185%, reaching $100 million, almost equal to the token’s market cap at $110.38 million. However, the market cap is 5 times lower than its fully diluted value (FDV) of $564 million.
The liquidity is moderate, with a liquidity-to-market-cap ratio of 2.51%. This means the token is safe for average retail investors, but institutional traders face execution challenges.
Worth noting, its tokenomics show that 2.2 billion $ZAMA tokens are in circulation from a total supply of 11.19 billion. This data shows only 19.66% is in circulation, while the remaining 80% is being released daily.
Despite its TGE happening in early February 2026, the privacy protocol has garnered support from some whales and institutions.
For instance, a whale is relentlessly accumulating from the Kraken exchange. In the past two days, the whale has bought over 28 million $ZAMA with the recent transaction of 14.26 million tokens worth $571K.
Over the past 125 days, the wallet has acquired a total of 98.18 million $ZAMA tokens, valued at $3.93 million. This indicates the released supply is being absorbed aggressively, explaining why the altcoin is rallying despite daily token unlocks.
Another driving factor was the social sentiment. The altcoin was trending at position 1 on CoinGecko and second on CoinMarketCap. Its weekly gains were in excess of 41%, reinforcing the social sentiment.
The daily chart showed $ZAMA broke out of an ascending trend channel that it has respected since TGE in February.
It has printed a new all-time high of $0.05171, with bulls showing they are gaining momentum as per MACD bars. The CVD is also mostly bullish with more than 40 million $ZAMA bought in Binance’s spot market.
$ZAMA/USDT on TradingView
The consecutive 4-day rally that started at the trendline support level around $0.0300 has led to a breach of the upper trendline resistance. However, a bigger community can support such rallies, but the number of $ZAMA holders is at 7.64K
Moreover, there is potential for a post-breakout retracement, which could take the price to $0.045 or below.