Cardano's (ADA) privacy-focused Midnight protocol recorded approximately $2.9 billion in 24-hour trading volume, marking a significant surge for the recently launched NIGHT token.
The token currently trades around $0.066 with a market capitalization of $1.07 billion.
NIGHT launched on major exchanges December 9 following volatile price action that saw the token briefly reach $1.81 before crashing 96% to current levels.
The volume spike comes as privacy-focused cryptocurrencies gain renewed attention amid tightening regulatory oversight in Europe.
What Happened
Midnight's trading activity exceeded $2.9 billion across centralized exchanges including Binance, Bybit, OKX, and Kraken.
The token initially surged above $1 billion in market capitalization during its first trading days, with Bybit alone accounting for over $650 million in turnover.
Following the launch euphoria, NIGHT experienced sharp corrections before stabilizing in the $0.06-0.07 range.
The token currently has 16.6 billion tokens in circulation from a total supply of 24 billion.
Midnight Foundation distributed 4.5 billion NIGHT tokens through Glacier Drop and Scavenger Mine distribution phases.
Redemption occurs in four installments over one year starting December 10, with each participant receiving 25% of claimed tokens every 90 days.
Midnight Foundation President Fahmi Syed revealed the project received a legal contract from a prospective stablecoin partner.
The deal remains under legal review with no finalized agreement or partner disclosure.
Why It Matters
Midnight represents Cardano founder Charles Hoskinson's attempt to add enterprise-grade privacy infrastructure to the ecosystem.
The protocol uses zero-knowledge proofs and a dual-ledger architecture enabling selective disclosure for regulatory compliance.
Privacy tokens have rallied since October as European Union rules will bar exchanges from listing privacy coins starting 2027.
Zcash (ZEC) surged tenfold between October and mid-November, while Monero (XMR) and other privacy-focused assets gained momentum.
Midnight's architecture differs from traditional privacy coins by enabling programmable privacy where users control what information remains visible versus hidden.
The project positions itself for enterprise adoption in identity verification, supply chain logistics, and compliant decentralized finance applications.
Trading volatility reflects typical patterns for newly launched tokens with significant unlocking schedules ahead.
The potential stablecoin integration could expand Midnight's utility beyond speculative trading into practical payment applications requiring privacy features.