What The New Mightnight Launch Means For The Cardano Network

bitcoinistPublicado a 2025-12-24Actualizado a 2025-12-24

Resumen

Charles Hoskinson, founder of Cardano, has explained that the launch of the Midnight Network will significantly boost DeFi on the Cardano ecosystem, potentially increasing it by tenfold. He refuted claims that Midnight would harm Cardano, stating instead that it will attract users from other networks like Ethereum and Solana by offering privacy features. Hoskinson described Midnight as the "ChatGPT of privacy," adding that it will provide privacy to Cardano dApps, helping them leapfrog competitors. He also emphasized that ADA and NIGHT tokens are complementary and that investors should not sell ADA for NIGHT. Additionally, he expects growth in Bitcoin DeFi on Cardano due to their shared UTXO model. Despite current low DeFi rankings, the ecosystem is advancing with proposed infrastructure for stablecoins and oracles, and recent hype around the NIGHT token has already increased trading volume. A stablecoin partnership is also in the works, speculated to be USDT or USDC, which could further boost network growth.

Charles Hoskinson has explained what the Midnight Network’s launch will mean for the Cardano network. This comes as the Cardano network doubles its efforts to improve DeFi on the network and, in the process, boost ADA’s utility.

Hoskinson Explains Midnight Will Boost Cardano’s DeFi

During a livestream, the Hoskinson rebutted speculation that Midnight would kill the Cardano ecosystem, stating that it would instead 10x DeFi on the network. He also mentioned that the Midnight network provides an incentive for users to leave other networks, such as Ethereum and Solana, and migrate to Cardano.

The founder noted that these users can go through the Midnight network to Cardano in order to get privacy. The hype around the Midnight launch already looks to be boosting the network’s ecosystem, as DEX aggregator DEX Hunter pointed out that the DeFi volume has been exploding since the launch of the NIGHT token.

Meanwhile, Hoskinson also mentioned why investors should not sell their ADA for NIGHT tokens, describing both tokens as complementary. He further remarked that Midnight is the ‘ChatGPT of privacy’ and that it adds privacy to Cardano decentralized applications (dApps).

The founder also asserted that these dApps will be the first to adopt privacy, enabling them to leapfrog competitors on other networks, such as Ethereum’s Uniswap. Hoskinson also does not believe Midnight will steal ADA’s TVL, as he sees the latter as one meant to provide on-chain/off-chain infrastructure for networks like Cardano.

Hoskinson also expects Bitcoin DeFi to grow on Cardano, since they share the same UTXO system. This move could further boost ADA’s utility and lead to significant growth in the ecosystem. However, for now, the blockchain remains well behind, as DeFiLlama data show it ranks 31st in DeFi TVL.

Big Things In Store For The Blockchain?

Cardano’s core ecosystem organizations proposed an infrastructure budget last month to advance stablecoins, custody, analytics, bridges, and pricing oracles on the network. The ecosystem already appears to be making progress, as the Midnight Foundation President, Fahmi Syed, recently revealed that a legal contract has been received for a stablecoin partner.

This has led to speculation that it could be USDT or USDC, with these stablecoins likely to provide a significant boost to network activity. Commenting on the network’s future, stakeholder Rami recently expressed optimism, stating that the network is getting a tier-1 stablecoin in months while the DEX trading volume is “exploding.”

He believes that trading volume will continue to grow as additional NIGHT liquidity enters the market and more trading pairs are established. Rami added that DEXs are faster than ever and that new oracle systems are coming online.

At the time of writing, the ADA price is trading at around $0.35, down over 2% in the last 24 hours, according to data from CoinMarketCap.

ADA trading at $0.35 on the 1D chart | Source: ADAUSDT on Tradingview.com

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Preguntas relacionadas

QWhat does Charles Hoskinson claim the Midnight Network will do for Cardano's DeFi?

ACharles Hoskinson claims that the Midnight Network will boost Cardano's DeFi by 10x, rather than kill the ecosystem, and will provide an incentive for users from other networks like Ethereum and Solana to migrate to Cardano.

QAccording to Hoskinson, why should investors not sell their ADA for NIGHT tokens?

AHoskinson stated that investors should not sell their ADA for NIGHT tokens because both tokens are complementary, with Midnight providing privacy features to Cardano's dApps and ADA serving as the infrastructure token.

QHow does Hoskinson believe Midnight will impact Cardano's position relative to competitors like Ethereum?

AHoskinson believes that Midnight will enable Cardano's dApps to be the first to adopt privacy, allowing them to leapfrog competitors on other networks, such as Ethereum's Uniswap.

QWhat recent development suggests progress for stablecoins on the Cardano network?

AThe Midnight Foundation President, Fahmi Syed, revealed that a legal contract has been received for a stablecoin partner, leading to speculation that it could be USDT or USDC, which would significantly boost network activity.

QWhat is the current ranking of Cardano in DeFi TVL according to DeFiLlama data?

AAccording to DeFiLlama data, Cardano ranks 31st in DeFi TVL, indicating it remains well behind other networks despite ongoing developments.

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