Midnight Network's NIGHT token increased by almost 200% in 24 hours after its launch on December 9 and became the most talked-about asset on CoinGecko and CoinMarketCap.

The token reached a market value of over 1.2 billion USD and over 320 million USD in trading volume on the first day.

Mega rise for privacy coins?

Midnight functions as a partner chain or side chain to Cardano. Its first token and ledger are issued on Cardano as a Cardano Native Asset.

The talked-about IPO puts Midnight Network at the center of the market. Privacy coins have risen since October.

Regulations in Europe have driven up interest. The rules have become stricter, which is why more are looking for zero-knowledge technology.

Zcash started the trend and increased tenfold from October to mid-November. The rise came as the EU approved regulations that prevent exchanges from listing privacy coins starting in 2027.

Traders switched to Dash, Railgun, Decred, and Monero as the sector grew. Trading volumes for privacy tokens reached nearly 3 billion USD at the peak.

But the rise also created uncertainty. Analysts warn that stricter regulations could push privacy activity away from regulated platforms.

At the same time, the discussion about the EU's surveillance regulations and the Chat Control law has increased the willingness to use technology that protects privacy.

In that situation, Midnight's launch came at the right time. The project aims to be a privacy-focused network where zero-knowledge proofs and a two-token system are utilized.

NIGHT is the main token, and DUST pays for private transactions. The model ensures that information is only visible when needed.

This structure fits the market's interest in privacy infrastructure instead of just anonymity. It also reflects increasing concerns about wallet tracking, identity verification demands, and personal data in the digital economy.

Crypto's privacy narrative is gaining momentum

Great interest in trading showed this. NIGHT rose from around 0.039 USD to more than 0.085 USD before it pulled back. There are now 16.6 billion tokens in circulation. Investors viewed the launch as a way to get in early on the next step for privacy technology.

But the privacy sector is still uncertain. Zcash dropped more than 40% after the peak in November. Dash lost momentum after its rise in early December.

Analysts believe that the redistribution among the leaders will continue as regulations tighten and new privacy-focused projects emerge.

Right now, Midnight has had the strongest launch of all new tokens this quarter. The rapid rise shows that capital is quickly moving to privacy infrastructure as regulations become stricter.

The next test will be whether demand holds up as the initial hype decreases and the market focuses more on actual users.