Cardano’s NIGHT token took a nosedive, and it didn’t go alone. Zcash (ZEC) and Monero (XMR), the big names in privacy coins, slid right alongside it. It was one of those days where the whole privacy sector caught a cold.

So, what set this off? Traders blame a mix of things. NIGHT, for starters, is tied to a newer privacy project on Cardano, and its trading volume was already pretty thin. Once people started selling, it turned into a stampede. These smaller, narrative-driven tokens always seem to get hit the hardest when the mood shifts. One minute, everyone’s excited; the next, they’re rushing for the exits.

ZEC and XMR have been around the block, but even they weren’t safe. Privacy coins keep running into trouble regulators breathing down their necks, exchanges dumping them in certain countries, and new compliance rules making life harder. When crypto investors get jittery, privacy tokens are usually the first thing they ditch.

On top of that, the whole market’s looking a bit shaky. Bitcoin and Ethereum can’t seem to find any real momentum, so traders are pulling back from riskier bets. Altcoins especially the ones that might raise red flags with regulators are getting hit the hardest.

Still, not everyone’s panicking. Some folks who’ve held these coins for years see this as just another cycle. Privacy is still a big deal for a chunk of the crypto crowd. But honestly, conviction only gets you so far when prices are falling and everyone’s nervous.

In the end, the drop in NIGHT, ZEC, and XMR sends a loud message: when the market gets spooked and liquidity dries up, even strong narratives can unravel fast.