Gate News Bot Message, February 5th, according to CoinMarketCap data, as of press time, ZAMA (Zama) is currently priced at $0.03, down 12.54% in the past 24 hours, with a high of $0.04 and a low of $0.02. The 24-hour trading volume reached $126 million. The current market capitalization is approximately $57.6 million, a decrease of $8.2615 million from yesterday.
Zama is a confidential blockchain protocol project dedicated to implementing confidential smart contracts on any L1 or L2 blockchain using Fully Homomorphic Encryption (FHE) technology. The protocol maintains on-chain data in an encrypted state during processing by utilizing FHE algorithms, addressing the contradiction between blockchain transparency and privacy protection.
Zama leverages co-processors to offload FHE computations from the main chain, maintaining low Gas fees while achieving horizontal scalability and publicly verifiable security. The protocol is live on the mainnet, currently supporting a transaction processing speed of 20 transactions per second, with an expected increase to 1,000 transactions per second next year. By collaborating with multiple hardware vendors to develop FHE-specific chips, the goal is to eventually reach over 10,000 transactions per second.
Zama provides compliant confidentiality solutions across multiple fields such as DeFi, payments, banking, tokens, RWA tokenization, and sealed bid auctions. Developers can use standard Solidity toolchains to develop Zama contracts, mark privacy-sensitive parts with the euint data type, and directly define compliance rules within smart contracts.
1️⃣ Break in Funding Price Triggers Selling Pressure
The community public sale round was funded at $0.05. The current pre-market contract price has already fallen below $0.043, approaching a 10% decline. This indicates that early investors are facing unrealized losses after the project’s listing. Breaking below the funding price often triggers sell-offs from those seeking to cut losses, becoming a significant recent price pressure factor. The community public sale attracted 7,651 investors and raised $121 million, meaning the large participant base could lead to substantial sell pressure for potential profit-taking.
2️⃣ Liquidity Release and Market Adjustment Post-Listing
As a recently listed project, ZAMA is experiencing liquidity supply release. Against the backdrop of breaking below the funding price, market participants are reassessing the project’s valuation, leading to sustained high trading volume (24-hour volume of $126 million) but a one-sided downward price trend.
This message is not investment advice. Please be aware of market volatility risks.
Related Articles
XRP Holds $1.34 Support While Leverage Heatmap Highlights $1.30 Risk Zone
ETH drops 1.07% in 15 minutes: whale fund concentration triggers short-term pullback
BTC 15-minute decline of 0.70%: On-chain large transfers and macro bearish signals resonate, triggering short-term selling pressure
XRP Slides to $1.42 After Losing $1.80–$2 Neckline as $1.39 Support Faces Immediate Test
Solana Approaches Key Sell Wall at $84.78 — Will Momentum Hold for a Move Toward $89?
Polkadot Holds $1.46 Support as Descending Channel Caps Upside Near $1.53