NIGHT Enables Institutional Privacy on XRP Ledger

• Arthur Hayes has sold over $5.5 million in Ethereum to accumulate DeFi tokens like PENDLE and ETHFI. According to reports
• Midnight, powered by NIGHT token, offers zero-knowledge proof privacy for compliant DeFi on XRP Ledger. According to analysis
• Charles Hoskinson positions Midnight as a key solution for institutional-grade privacy in tokenized assets. Hoskinson notes
• Cardano faces price pressure despite Midnight's traction amid slow adoption challenges. According to market data

NIGHT, the token for Midnight's privacy layer, is gaining attention as it integrates with XRP Ledger to enable institutional-grade decentralized finance. Ethereum's ecosystem sees shifts like Arthur Hayes reducing exposure, while Midnight aims to address compliance gaps. This innovation supports tokenization of real-world assets with selective data disclosure. That activity highlights growing interest in privacy-focused infrastructure for 2026 recovery.

What Is Midnight and How Does It Enhance Blockchain Privacy?

Midnight uses zero-knowledge proofs to allow private transactions on public blockchains like XRP Ledger without revealing sensitive details. According to analysis This framework helps institutions meet regulatory demands by keeping data confidential while permitting access for compliance checks. Charles Hoskinson emphasizes that Midnight builds on Cardano's ecosystem to offer advanced privacy, contrasting with slower traditional finance initiatives. According to reports Such features could attract capital seeking secure DeFi solutions.

Interest in Midnight has surged, with the project trending above Bitcoin and Ethereum on platforms like CoinGecko. According to market analysis Hoskinson notes its design resembles Bitcoin's early privacy focus, potentially revitalizing DeFi applications. According to analysis Still, adoption remains early, with total value locked under $500 million despite a $10 billion daily trading volume spike. According to reports The NIGHT token's value hinges on sustained developer activity and macroeconomic conditions improving.

How Could Midnight Impact DeFi Adoption on Cardano and XRP Ledger?

Midnight's integration addresses XRP Ledger's historical lack of native smart contracts, enabling private DeFi products that compete with banking systems. According to analysis XRP Ledger's technical strengths like 3–5 second settlements and low fees pair with Midnight's privacy for efficient transactions. According to analysis That synergy has already driven XRPL's DeFi TVL to $103.67 million, targeting institutional use cases like tokenized U.S. Treasuries. According to reports By contrast, Cardano struggles with network activity and user growth despite Midnight's launch. According to analysis

Cardano has plunged 70% from its 2023 peak, with ADA trading near $0.4100 amid broader risk-off sentiment. According to reports Hoskinson acknowledges ADA's price challenges as Midnight gains traction, but analysts link its recovery to breaking key resistance levels. According to market analysis Midnight is not replacing ADA but extending Cardano's capabilities, which could create a flywheel effect if execution improves. According to reports Upcoming partnerships, including a Solana bridge to access $95 billion in DeFi liquidity, may accelerate adoption. According to analysis Success requires overcoming current headwinds in retail participation.

What Do Broader Market Trends Signal for Crypto in 2026?

Arthur Hayes is rotating capital into DeFi tokens like ENA and PENDLE, viewing them as undervalued plays with strong fundamentals ahead of 2026. According to reports He deployed $3.48 million across four tokens, betting on catalysts like potential ETF approvals and revenue growth. According to reports Pendle alone now represents his largest DeFi holding at $1.75 million, reflecting confidence in cash flow resilience. According to market analysis This strategy underscores a shift away from Ethereum toward protocols with clearer institutional pathways.

Ethereum price predictions for 2026 vary widely, with optimists like Tom Lee forecasting $10,000 on institutional adoption tailwinds. According to market analysis Standard Chartered revised its target to $7,500, citing corporate treasury activity and stablecoin dominance. According to market analysis Yet some analysts remain cautious, noting Bitcoin-led dynamics could limit gains. According to market analysis Parallel moves include Trump Media's plan to issue a digital token on Cronos blockchain, rewarding shareholders with perks. According to reports These trends highlight a market focused on compliance and real-world utility as key drivers for next year.