ZAMA hits all-time high amid FHE privacy narrative resurgence

ZAMA surged approximately 42% in the last 24 hours to reach a record high of $0.085, with its market capitalization exceeding $210 million. The rally follows the expansion of Morpho's Confidential Vaults on Ethereum and the launch of "Confidential Incentives" in partnership with Merkl, alongside the debut of the Zama Swap Protocol. While the project's Shielded TVL has surpassed $78 million, analysts note that the token's burn-and-mint economic model currently remains inflationary, as annual issuance from staking rewards significantly outweighs the volume of fees burned from encryption operations. Furthermore, the rapid growth in TVL is partially attributed to liquidity incentives and potential double-counting of wrapped assets, leaving the sustainability of the current demand for privacy-focused DeFi services to be determined once subsidy programs conclude.