ZAMA Token Price Forecast Q1–Q4 2026

Zama (ZAMA) is an infrastructure protocol focused on Fully Homomorphic Encryption (FHE), a technology that allows smart contracts to process encrypted data without decryption. Often described as "HTTPS for blockchains," Zama functions as a privacy layer for existing networks like Ethereum and Solana rather than a standalone Layer 1.

Following a series of successful private funding rounds totaling $130 million, the project has entered its public launch phase. The ZAMA token serves as the core utility for protocol fees, staking, and governance, utilizing a burn-and-mint model to balance network usage with operator rewards.

Key Takeaways

• The ZAMA public Dutch auction is scheduled for January 21–24, 2026, with token claims starting February 2.
• Market sentiment reflects a reasonable Fully Diluted Valuation (FDV) target of approximately $600 million to $1 billion.
• Long-term value in 2026 depends on the successful integration of FHE into mainstream chains and hardware acceleration milestones.

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ZAMA: Market Launch and Q1–Q2 Performance

The first quarter of 2026 will be defined by the transition from the public Dutch auction to secondary market trading. Initial price discovery is expected to be volatile, as the auction's clearing price will set the baseline for the Token Generation Event (TGE) on February 2. Early models suggest a conservative entry point near $0.10–$0.13, reflecting the project’s high private valuation.

During the second quarter, the focus will shift to the mainnet beta expansion beyond Ethereum. Zama’s roadmap includes extending its "Privacy Layer" to other EVM-compatible chains and Solana by mid-2026. Successful cross-chain deployment is a critical catalyst, as it broadens the addressable market for confidential DeFi and private smart contracts.

Investors should monitor the burn rate of ZAMA tokens during this period. As a "burn-and-mint" protocol, increased network volume directly reduces circulating supply, which can provide a fundamental floor for the price if adoption by developers and institutional partners accelerates.

Read more: Introduction to ZAMA Crypto Project: Complete Overview

ZAMA: Adoption Trends and Q3–Q4 Outlook

In the latter half of 2026, ZAMA’s performance will likely correlate with the "Privacy Narrative" in the broader crypto market. As regulatory compliance becomes a priority, FHE’s ability to enable selective disclosure and encrypted auditing positions Zama as a preferred infrastructure provider for enterprise-grade applications.

Technological milestones, specifically hardware acceleration with FPGAs and ASICs, are expected to reach critical stages by Q3. If Zama and its partners can increase throughput from the current 20 TPS to several hundred, the token may see a significant re-rating as FHE moves from a niche cryptographic tool to a commercially viable standard.

The final quarter of 2026 could see Zama (ZAMA) testing higher valuation brackets if the Shibarium privacy upgrade and other high-profile integrations prove successful. However, the market remains cautious about FDV levels exceeding $2 billion, as the long-term utility demand must catch up to the ambitious valuations set by private venture capital.

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Conclusion

The ZAMA price forecast for 2026 is one of steady infrastructure growth tempered by the realities of a high-valuation launch. While the first half of the year will be dominated by price discovery and initial network expansion, the second half will test the protocol’s ability to scale and secure meaningful institutional adoption.

For market participants, the key metrics to watch include the final auction clearing price, the growth of active confidential smart contracts, and the successful rollout of hardware acceleration. Zama’s role as a "shovel seller" in the privacy sector makes it a high-potential asset, provided it can execute its ambitious technical roadmap.

FAQ

When is the ZAMA token public auction?

The rescheduled public Dutch auction for ZAMA is set to take place from January 21 to January 24, 2026.

What is the total supply of ZAMA tokens?

Zama has a total supply of 11 billion tokens, with 10% of the supply allocated to the public sale.

How does the ZAMA burn-and-mint model work?

All protocol fees paid in ZAMA are burned, while new tokens are minted to reward network operators, ensuring value is tied to actual network usage.

Is Zama a separate blockchain?

No, Zama is a confidentiality layer that integrates with existing blockchains like Ethereum and Solana to provide encrypted computation.

What are the main use cases for the ZAMA token?

The token is used to pay for computational resources, stake for network security as an operator, and participate in protocol governance.

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