Midnight (CRYPTO: NIGHT), the privacy-focused token that Charles Hoskinson launched last year, has gone parabolic and is beating popular coins like Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH).
NIGHT Has Soared Amid Rising Demand for Privacy Tokens
NIGHT has jumped by over 235% from its lowest level this year, and is now hovering near its highest level since March. This surge has brought its market capitalization to over $812 million, making it the 74th biggest coin in the world.
The surge has coincided with the ongoing demand for privacy tokens, as evidenced by the Zcash (CRYPTO: ZEC), Monero (CRYPTO: XMR), and Dash (CRYPTO: DASH) rally.
It also happened after Weiss Crypto, a company that provides ratings in the industry, touted the coin. In an X post, the company said that it expects Midnight to be the next big thing in the next 24 months. Hoskinson reacted to the post, predicting that Midnight would become bigger than Zcash, pointing to private agents, abstractions for all chains, and selective disclosure.
Still, despite the optimism, there are signs that Midnight has not lived up to expectations. DeFi Llama, an aggregator that tracks layer-1 and layer-2 chains and other projects, does not list any projects built using its technology. Instead, the recently-launched Arc and Robinhood Chain have already attracted over $562 million and $1.05 billion in assets.
With so many layer-1 and layer-2 chains in the industry, Hoskinson and the team hoped that the network will attract more developers interested in its privacy features. That’s because it uses zero-knowledge proofs to facilitate private transactions.
One reason for the lack of dApps in the network is that it was not possible for developers to deploy smart contracts on the network. This capability was enabled last week, and investors will watch closely whether developers will embrace it.
Cardano (CRYPTO: ADA), Hoskinson’s other project, has always been seen as a ghost chain despite its large market capitalization. It has a total value locked of just $65 million, much lower than other newer chains like Arc and Robinhood Chain.
Its stablecoin supply stands at just $67 million, while DEX networks in its ecosystem handled $348 million in volume in the second quarter, lower than other popular chains.
Midnight Token Price Has Become Overbought
NIGHT token chart | Source: TradingView
The daily chart shows that the NIGHT token has jumped from a low of $0.015 earlier this year to the current $0.048. It has soared above the crucial resistance level of $0.041, its highest point in May this year. Also, the token has moved above the 50-day moving average.
The risk, however, is that it has become highly overbought, with the Relative Strength Index (RSI) rising to the extreme overbought level of 86. As such, the token may retreat in the near term, potentially to $0.040.
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