Today we analyze the Midnight project~
Midnight is a privacy sidechain protocol of the Cardano ecosystem, focusing on zero-knowledge proof (ZK) driven "rational privacy," allowing users to selectively disclose data to comply with regulations while supporting dApp development. It addresses the pain points of blockchain privacy vs compliance, such as DeFi transactions needing audits while protecting users' sensitive information. The track belongs to Privacy + L2 + DeFi segments, combining Cardano's high TPS and ZK technology. The project has launched its mainnet (starting on December 8, 2025), with the NIGHT token as a Cardano native asset live, a preliminary TVL of $5 million, and over 300,000 users (covering 34M wallet airdrop), with daily active users around 50,000. The core competitiveness lies in the ZK selective disclosure framework, supporting compliant dApps, with a moat backed by IOG (the parent company of Cardano) + Google Cloud integration. Compared to Zcash/Monero, Midnight supports smart contracts and cross-chain bridging, with a user retention rate 30% higher; vs Aztec (ETH privacy L2), Midnight's low fees on Cardano and high throughput are more suitable for emerging markets.
Pain point solution: Traditional privacy chains' excessive anonymity leads to regulatory barriers, and Midnight's "prove without revealing" reduces compliance costs by 50%.
Data highlights: airdrop of 4.5B NIGHT unlocked over 360 days to avoid selling pressure; Binance Alpha's initial launch boosts liquidity.
Competitive differences: Compared to Monero's enforced privacy, Midnight's dApp ecosystem is richer, with an expected TVL exceeding 1 billion by 2026.
Midnight is a privacy sidechain protocol of the Cardano ecosystem, focusing on zero-knowledge proof (ZK) driven "rational privacy," allowing users to selectively disclose data to comply with regulations while supporting dApp development. It addresses the pain points of blockchain privacy vs compliance, such as DeFi transactions needing audits while protecting users' sensitive information. The track belongs to Privacy + L2 + DeFi segments, combining Cardano's high TPS and ZK technology. The project has launched its mainnet (starting on December 8, 2025), with the NIGHT token as a Cardano native asset live, a preliminary TVL of $5 million, and over 300,000 users (covering 34M wallet airdrop), with daily active users around 50,000. The core competitiveness lies in the ZK selective disclosure framework, supporting compliant dApps, with a moat backed by IOG (the parent company of Cardano) + Google Cloud integration. Compared to Zcash/Monero, Midnight supports smart contracts and cross-chain bridging, with a user retention rate 30% higher; vs Aztec (ETH privacy L2), Midnight's low fees on Cardano and high throughput are more suitable for emerging markets.
Pain point solution: Traditional privacy chains' excessive anonymity leads to regulatory barriers, and Midnight's "prove without revealing" reduces compliance costs by 50%.
Data highlights: airdrop of 4.5B NIGHT unlocked over 360 days to avoid selling pressure; Binance Alpha's initial launch boosts liquidity.
Competitive differences: Compared to Monero's enforced privacy, Midnight's dApp ecosystem is richer, with an expected TVL exceeding 1 billion by 2026.