Midnight Network’s NIGHT token surged almost 200% within 24 hours of its December 9 launch, becoming the most-trending asset on CoinGecko and CoinMarketCap.
The token hit a market cap above $1.2 billion and registered more than $320 million in trading volume during its first full day.
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Mega Bullish Season For Privacy Coins?
Architecturally, Midnight is conceived as a “partner chain” or sidechain to Cardano. Its initial token and ledger are issued on Cardano (as a Cardano Native Asset).
The hyped market debut places Midnight Network at the centre of a broader shift in the market. Privacy coins have rallied since October.
Most recently, it has been fueled by regulatory pressure in Europe, tightening surveillance rules, and a renewed appetite for zero-knowledge technology.
Zcash sparked the trend with a tenfold rise between October and mid-November. The surge coincided with the EU’s approval of rules that will bar exchanges from listing privacy coins starting in 2027.
Traders rotated into Dash, Railgun, Decred, and Monero as the sector gained momentum, lifting privacy-token volumes toward $3 billion at peak.
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However, the rally has carried tension. Analysts warn that increased regulatory scrutiny may force privacy activity off regulated platforms.
At the same time, controversy around EU surveillance measures and the proposed Chat Control law has strengthened demand for technologies that preserve confidentiality.
Against this backdrop, Midnight’s launch arrived at the perfect moment. The project positions itself as a privacy-first network using zero-knowledge proofs and a dual-token model.
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NIGHT acts as the primary asset, while DUST funds private transactions. The model offers selective disclosure, making data visible only when required.
This structure aligns with the market’s rotation toward privacy infrastructure rather than simple anonymity tools. It also fits rising concerns over wallet tracking, identity verification requirements, and the future of personal data in digital finance.
Crypto Privacy Narrative Is Taking Off
Trading interest reflected that narrative. NIGHT climbed from around $0.039 to more than $0.085 before easing. Its circulating supply reached 16.6 billion tokens, with investors treating the launch as an entry point into the next phase of the privacy-technology cycle.
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Yet the privacy sector remains volatile. Zcash retraced more than 40% after its November peak, while Dash’s early-December breakout lost momentum.
Analysts expect rotation between leaders to continue as regulation tightens and new privacy-focused projects emerge.
For now, Midnight has captured the strongest launch momentum of any new token this quarter. Its rise illustrates how fast capital is moving into privacy infrastructure as the regulatory environment hardens.
The next test will be whether demand stays high once the initial hype fades and the market shifts its focus from narrative to usage.