Midnight Network's NIGHT token rose nearly 200% within 24 hours after its launch on December 9, becoming the most trending asset on CoinGecko and CoinMarketCap.
The token's market value exceeded 1.2 billion dollars. On its first full day, it reached over 320 million dollars in trading volume.
Is it a mega bull season for privacy coins?
Architecturally, Midnight was designed as a 'partner chain' or sidechain to Cardano. Its first token and ledger were issued on Cardano (as a Cardano Native Asset).
The market launch, which received great interest, places Midnight Network right in the middle of the major transformation in the market. Privacy coins have gained significant momentum since October.
This movement is triggered by the increasing regulatory pressure in Europe, tightening surveillance rules, and appetite for zero-knowledge technologies.
Zcash ignited this trend: It increased its price tenfold from mid-October to mid-November. This rise coincided with the European Union's approval of rules that will ban the listing of privacy coins on cryptocurrency exchanges starting in 2027.
As the sector gains momentum, traders turned to Dash, Railgun, Decred, and Monero. This transformation brought the volume of privacy tokens close to $3 billion at its peak.
However, there is also tension within this rise. Analysts warn that increasing regulatory scrutiny could drive privacy activities away from regulated platforms.
Meanwhile, discussions around the European Union's surveillance regulations and the proposed Chat Control law have also increased demand for privacy-centric technologies.
In light of all these developments, we can say that Midnight's launch came at just the right time. The project stands out as a network centered around privacy with zero-knowledge proofs and a dual-token model.
NIGHT serves as the main asset. DUST finances private transactions. This model offers selective disclosure opportunities: Information becomes visible only when necessary.
This structure aligns with the market's shift towards privacy infrastructure. Thus, it addresses rising concerns such as wallet tracking, identity verification requirements, and personal data security in digital finance, rather than just providing anonymity.
The Narrative of Cryptocurrency Privacy is on the Rise
Trading interest has followed this narrative precisely. The price of NIGHT eased after climbing from around $0.039 to above $0.085. The circulating supply reached 16.6 billion tokens. Investors evaluated the launch as an opportunity to enter a new phase of privacy technology cycles.
Still, there is significant volatility in the privacy segment. Zcash retraced more than 40% after the November peak. Dash's momentum lost steam at the beginning of December.
Analysts predict that rotation among leading coins will continue as regulations tighten and new privacy-focused projects emerge.
So far, Midnight has been the fastest launching new token this quarter. This rise reveals how quickly capital is shifting towards privacy infrastructures as the regulatory environment tightens.
The next exam is: Once the initial excitement subsides and the market shifts from narrative to usage, will demand remain high?
