FHE suddenly erupts: From an edge project to a privacy track focus, in just one day

On January 15th, Mind Network’s token FHE increased by 34.54% within 24 hours, currently trading at $0.06, with a market capitalization of $21 million. This is not an isolated price fluctuation but a microcosm of the overall privacy computing sector heating up. From a 7-day increase of 51.82% to recent extreme overbought technical signals, FHE’s performance reflects the market’s renewed recognition of FHE technology and also exposes current risk hidden dangers.

Project Fundamentals: User and Transaction Data Support Token Price

As an AI Agent privacy infrastructure platform, Mind Network’s core appeal lies in its practical application implementation. To date, the platform has accumulated 94,000 CitizenZ users, 346 FHE protection agents, and over 10.61 million encrypted transactions. These data indicate that FHE technology is not just theoretical but validated infrastructure in real-world scenarios.

The platform’s financing background is also impressive. Mind Network has received support from top institutions like Chainlink, with total funding reaching $12.5 million, and is now listed on 119 exchanges. This broad liquidity and institutional backing provide a solid foundation for the token’s price performance.

Sector Heating Up: FHE Technology Becomes a New Focus in Privacy Computing

The strong performance of FHE is driven by the overall heating up of the privacy infrastructure sector. Several key signals are worth noting:

FHE Technology Application Heat Rising

Fully Homomorphic Encryption (FHE) is hailed as the “Holy Grail” of cryptography, with its core value lying in enabling processing without decrypting data. This feature is opening new application opportunities in Web3 privacy smart contracts, especially amid the rapid development of AI Agent economy.

Increased Competition in Privacy Sector

Zama, another major player in the FHE sector, is set to launch its token public sale on January 21st, with an estimated valuation of $55 million. This move directly boosts market attention on the entire FHE sector. Meanwhile, the official strategic partnership announcement between Shiba Inu and Zama marks FHE technology’s evolution from niche cryptographic tools to mainstream blockchain infrastructure.

Agent Economy Drives Privacy Demand

As AI Agent applications expand, interactions between Agent-to-Agent require stronger privacy and security. Mind Network offers confidential settlement and encrypted transaction solutions via FHE technology, directly addressing this market demand. Over ten million transaction data points demonstrate that this application mode has gained market recognition.

Technical Warning: RSI Extreme Overbought

Although the fundamentals support the price performance, technical signals show clear overbought conditions. According to the latest analysis:

• 1-hour RSI: 67, indicating short-term sentiment has cooled
• 4-hour RSI: 80, in the extreme overbought zone
• 24-hour trading volume: sharply shrank by 94.9%, indicating insufficient upward momentum

This divergence between volume and price suggests that the current upward momentum may be waning. The key support level is at $0.058; if broken, further correction could be triggered.

Summary

The 24-hour strong surge of FHE results from multiple factors resonating: the project’s user base and transaction data validate its technical viability; the overall sector heating provides emotional support; industry events like Zama’s token public sale further boost attention.

However, it is important to note that the current technical overbought state indicates risk accumulation. Such rapid gains often require a correction to digest gains, especially amid shrinking trading volume. From an investment perspective, paying attention to the key support at $0.058 is crucial, as it will determine whether a larger correction will follow.

In the long term, the prospects of FHE technology in the privacy computing field are worth watching, but the short-term risk-reward ratio has become less favorable.