Zama Hits All-Time High Amid Product Expansion and TVL Growth

Zama (ZAMA) reached a new all-time high, with its market cap exceeding $210 million following the expansion of its confidential vaults on Morpho and the launch of confidential incentives with Merkl. While the project's shielded total value locked (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 fees burned from FHE operations. Future sustainability depends on whether organic demand for privacy-preserving DeFi can eventually outpace the current subsidy-driven growth.