The ZAMA token rebounded more than 19% from its Tuesday low of $0.0262, after completing an almost 37% correction following its initial launch and $0.041 peak price earlier this week.
On Wednesday, the newly issued token was trading around $0.03, valuing the network at a market capitalization of nearly $68 million.
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ZAMA launched on Monday and powers fees and staking within the Zama ecosystem, a blockchain privacy project focused on confidential smart contract execution.
Sponsored
Zama positions itself as a privacy layer for existing blockchains rather than a standalone network. Its core technology, Fully Homomorphic Encryption (FHE), allows smart contracts to process encrypted data on Layer 1 and Layer 2 networks like Ethereum, keeping balances, transactions, and trading strategies confidential.
The company says this launch marks the first production-scale deployment of FHE on Ethereum mainnet, aiming to remove the trade-off between transparency and privacy.
The launch follows an earlier on-chain token sale via CoinList, which set a $55 million fully diluted valuation floor using the same auction model. Zama has raised between $130 million and $184 million from investors including Multicoin Capital and Pantera Capital.
Privacy Narrative Gains Momentum
Privacy is gaining traction as a narrative in crypto. Coins like Zcash, Monero, and Dash have seen renewed interest and price outperformance relative to broader markets.
Analysts say tighter on-chain surveillance and increasing regulatory reporting requirements are making confidentiality a more valued feature. Firms such as a16z Crypto have highlighted privacy as a key infrastructure trend for 2026, suggesting it’s moving from optional to essential.
Why This Matters
ZAMA’s rebound highlights growing market interest in privacy-focused infrastructure at a time when blockchain users and investors are increasingly prioritizing confidential transactions and data protection.
