NIGHT jumped 24 percent in the last day after struggling for nearly four weeks. The rise makes it one of the top performers in the privacy token market. Trading activity also grew with volume reaching five billion dollars showing strong buying interest.
The move is different from most other privacy tokens which have been weak. On average the privacy sector dropped slightly while NIGHT went up. The main reasons for NIGHTs rise are ongoing updates in its network and a new airdrop. These factors created excitement but it is not clear if the rally will last.
The recent gains mostly come from the airdrop which started on the tenth of December. Around four and a half billion NIGHT tokens will be distributed to eligible participants. The news attracted traders from around the world including large investors in the United States.
Trading on Binance accounted for over one billion dollars of volume. The volume compared to market value is very high at 372 percent. This shows strong momentum and suggests the price could keep rising in the short term.
Capital inflows have increased to over one hundred million dollars in the past day. More than half of this is fresh money entering the market. However the new capital is not all from long term investors. Data shows many short traders are active and funding rates remain negative. This means a lot of positions are still bets on falling prices.
Even so shorts have struggled. Traders betting on a drop lost over one million dollars while long traders lost less than half a million. The main support for the price is strong buying volume. Overall more money is moving in long positions than short positions despite the number of short contracts.
Despite the price rise more token holders are leaving. The number of holders fell from six thousand eight hundred to six thousand two hundred. This shows weak conviction among small investors. The supply is also highly concentrated. Ten wallets hold over ninety four percent of all tokens while retail investors have less than six percent. This is a major risk if large holders decide to sell.
In conclusion NIGHT has gained attention and more investors are joining because of updates and the airdrop. The rally shows strong momentum but risks remain from concentrated holdings declining number of token holders and reliance on short term capital. Traders should watch how the supply moves and whether the current momentum can last.
