DeFi

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Zama

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Zama's total value locked (TVL) has risen 82% over the past 30 days to about $131M, according to DefiLlama data. The growth places the privacy-focused protocol at the top of DefiLlama's privacy category by TVL. The <a href="https://x.com/search?q=%24ZAMA&amp;src=cashtag_click" rel="noopener noreferrer nofollow">$ZAMA</a> token is up 30.2% over the same period.
Zama is a platform designed to bring data privacy to public blockchains using Fully Homomorphic Encryption (FHE). The technology allows computation on encrypted data without exposing the underlying values.
<h2 id="what-is-driving-zama-s-tvl-growth">What is driving Zama's TVL growth</h2>
DefiLlama's privacy protocol rankings list Zama on one chain with TVL of $131.32M. The figure has built steadily through the autumn. Zama reported surpassing $90M in shielded TVL at the end of September, up from more than $40M in June, with over $68M deposited in confidential vaults.
Much of the expansion has come from confidential DeFi products on Ethereum. On September 15, the network went from a single vault to sixteen, curated by five firms including Steakhouse Financial, Armitage by Wintermute, Flowdesk, RockawayX and Bitwise. On September 17, Zama also partnered with Merkl to launch Confidential Incentives, which lets confidential tokens plug into Merkl's DeFi incentive infrastructure.
Analysts have urged caution on the quality of the deposits. A TechFlow analysis noted that part of the TVL may be capital attracted by subsidised rates, which could leave when the incentives end. The same piece said that there is no public data to precisely split the proportions between incentive-driven and genuine privacy demand.
<h2 id="how-the-zama-protocol-works">How the Zama protocol works</h2>
Zama does not run its own chain. The Zama Protocol brings its confidentiality layer to existing networks. Mainnet launched on Ethereum on December 30, 2025, with the first confidential cUSDT transfer. Institutions can use FHE to issue, trade and manage confidential assets on public blockchains while keeping them verifiable.
The token followed in early 2026. The ZAMA token launched on February 2, 2026, after a sealed-bid Dutch auction that raised roughly $118 million, and reached an all-time high of $0.1068 on September 23. The token is designed to secure operations through staking, pay for protocol usage and enable governance.
The latest TVL gain suggests continued demand for onchain privacy tooling, though sustained growth will depend on whether deposits stay once incentive programmes taper. Readers should treat TVL as one measure of usage, not a guide to token performance.
Sources:
<ul>
 <li><a href="https://defillama.com/protocols/privacy" rel="noopener noreferrer nofollow">DefiLlama: Crypto Privacy Protocols by TVL</a></li>
 <li><a href="https://crypto-economy.com/zama-marks-confidential-defi-milestone-16-vaults-five-curators-90m-shielded/" rel="noopener noreferrer nofollow">Crypto Economy: Zama confidential DeFi milestone</a></li>
 <li><a href="https://www.techflowpost.com/en-US/article/34097" rel="noopener noreferrer nofollow">TechFlow: ZAMA and the privacy layer of Ethereum</a></li>
</ul>

Zama's TVL has nearly doubled in the last month.

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