Here’s Why Midnight (NIGHT) Won’t Hurt Cardano (ADA)

There have been rumors in the Cardano community that Midnight might hurt the primary blockchain or steer the community away from ADA. Related concerns were addressed by Charles Hoskinson in a recent livestream event. His message was clear. Midnight is not designed to replace Cardano (ADA) or compete with it. It is meant to extend what Cardano can offer. Hoskinson said that it was not enough to be Cardano faster and/or cheaper than other solutions. Being faster and/or cheaper helps, but they do not often persuade people to leave ecosystems such as Ethereum and Solana. Even the major upgrades of Leios and Hydra, he believes, only optimize efficiency. They do not change how people use DeFi in a meaningful way. This is where Midnight comes in. _Read Also: _****Why is Monero (XMR) Price Pumping Hard Today? Midnight is a privacy-focused side chain launched on the Cardano platform. The major highlight of Midnight is that it has programmable privacy. That means developers can create applications where users control what data is shared, and with whom. This type of privacy is largely missing in today’s DeFi landscape.

Hoskinson Says Midnight Won’t Kill #Cardano, But Will Expand Its DeFi Ecosystem by 10x. #ADA

Cardano founder Charles Hoskinson made the statement during a recent livestream, addressing concerns that Midnight could weaken Cardano’s core blockchain. In response, Hoskinson argued… pic.twitter.com/7rhSB214bl

— TheCryptoBasic (@thecryptobasic) December 22, 2025

Hoskinson explained that users do not usually abandon their existing networks. Rather than this, they seek a new technology which provides them with something which they cannot acquire or get from any other source. Midnight (NIGHT) enables users to continue engaging in the Ethereum, Solana, or other ecosystems, using Cardano infrastructure to provide them with privacy solutions that are not currently offered by those ecosystems. Instead, what Midnight is supposed to do is attract activity to its orbit rather than subtract value from Cardano (ADA) economy. Privacy-focused DeFi services, identity applications, and regulatory-friendly applications can be developed on top of Midnight while settling value in Cardano’s economy. This is a concern considering Cardano is still far behind the leaders in the DeFi space regarding usage, despite its robust security and degree of decentralization. Cardano’s total value locked, according to DeFiLlama, is approximately $178.98 million. That is far below Ethereum’s roughly $70.09 billion and Solana’s $8.57 billion. Hoskinson believes Midnight could change that dynamic. If privacy-enabled applications gain traction, Cardano’s DeFi activity could grow by as much as ten times.  That would place total value locked near $1.78 billion. While still behind Ethereum and Solana, it would mark a meaningful shift for the network. In short, Midnight (NIGHT) is not a threat to Cardano. It is an attempt to give the ecosystem something different. Instead of chasing speed alone, Cardano (ADA) is betting that privacy can unlock new use cases and bring fresh activity without breaking what already works.