Zama Protocol surged over 27% in the last 24 hours, taking the lead in gains within the privacy crypto sector.

Trading volume skyrocketed by 185%, hitting $100 million, nearly matching the token’s market cap of $110.38 million. Despite this, ZAMA’s market cap remains significantly lower than its fully diluted valuation of $564 million.

Liquidity stands at a moderate 2.51% relative to market cap, offering safety for retail investors but posing execution hurdles for larger institutional players.

Only 19.66% of the total 11.19 billion ZAMA tokens are currently circulating, roughly 2.2 billion tokens, with the remaining 80% unlocking daily. Daily market releases amount to about 4.06 million tokens valued at $200,000, with major token unlocks scheduled annually until 2030.

Despite its token generation event scheduled for early February 2026, Zama has attracted notable whale activity and institutional interest.

One whale has been aggressively accumulating on Kraken, purchasing over 28 million tokens in two days, including a recent buy of 14.26 million ZAMA worth $571,000. Over 125 days, this entity amassed 98.18 million tokens, valued at nearly $4 million, suggesting strong absorption of daily unlocks and supporting the rally.

Institutional support also comes from Multicoin Capital, whose co-founder Tushar Jain publicly endorsed ZAMA’s privacy features. Jain emphasized that privacy is key for institutions, explaining their long positions on both ZAMA and ZEC.

Social sentiment is riding high as well. ZAMA topped CoinGecko’s trending list and ranked second on CoinMarketCap, with weekly gains exceeding 41%, reflecting increased community interest.

On the price chart, ZAMA broke out from an ascending trend channel it had followed since its launch, hitting a new all-time high of $0.05171. Momentum indicators like MACD bars and cumulative volume delta show bullish strength, supported by over 40 million tokens bought on Binance’s spot market.

The rally began around $0.0300 four days ago, breaking through resistance, though the token’s holder base remains relatively small at 7,640 addresses. A pullback to around $0.045 or lower remains possible as part of normal price corrections.