Hoskinson Explains ADA Price Weakness as Midnight Draws Market Attention

Cardano founder Charles Hoskinson has addressed mounting questions about ADA’s weak price performance amid growing interest in Midnight ($NIGHT), a new project linked to the Cardano ecosystem. Midnight has quickly gained attention across the crypto market, highlighting a clear contrast between rising development interest and ADA’s stagnant price action. Hoskinson’s remarks offer insight into both the project’s ambitions and the broader state of the crypto market.

Hoskinson Sees Midnight Extending Beyond Cardano Into Broader DeFi

Midnight recently climbed to the top of CoinGecko’s list of trending cryptocurrencies, briefly attracting more online interest than Bitcoin, Ethereum, and Solana. Reacting to the development, Hoskinson noted that the project remains in its early phase and described it as the first Cardano-native asset to trend above both Bitcoin and Ethereum. 

He explained that the surge reflects growing interest in privacy-focused blockchain tools rather than short-term trading behavior.

In fact, the Cardano CEO argued that integrating Midnight into XRP-based DeFi systems could challenge existing banking structures. He also remarked that linking Midnight with Bitcoin could support concepts discussed during Bitcoin’s early design phase. 

Within the Cardano network, Midnight is expected to support large-scale private DeFi activity, potentially increasing overall network usage. Hoskinson characterized this phase as the beginning of a fourth generation of blockchain development centered on privacy and practical applications.

Development Progress Outpaces Price Action for Cardano, Hoskinson Says

Midnight’s expected influence on Cardano includes several areas:

• Private smart contracts suited for regulated environments.
• Expanded DeFi activity through privacy-focused tools.
• Increased network usage from enterprise applications.
• Higher transaction volumes linked to real-world activity.
• Greater appeal to developers working on compliance-driven products.

Despite rising attention around Midnight, ADA’s price remains under pressure. A community member questioned why Cardano’s price has not reflected these developments. Hoskinson said the broader crypto market continues to struggle after years marked by scams, hacks, manipulation, and misconduct. He described current conditions as fragile and heavily driven by sentiment, with trust still in the process of rebuilding.

A market recovery, he added, will take time. Several months may be required for sentiment to stabilize before prices begin to reflect underlying progress. His comments indicate that during periods of low confidence and reduced risk appetite, development progress alone may not be enough to support prices.

ADA Struggles Below $0.38 as Bearish Technical Signals Persist

At the time of writing, ADA trades below $0.38, posting a modest 3% gain over the past 24 hours. Even when looking at its long-term performance, ADA’s market momentum remains weak. 

For instance, the token is down 57% over the past year and sits 88% below its all-time high. Market sentiment also remains subdued, closing in positive territory only 11 of the past 30 days. 

Technical signals continue to indicate a strong downward pressure. Price action shows a pattern of lower highs and lower lows, while Bollinger Bands slope downward, indicating sustained bearish pressure. A recent rebound appears corrective rather than a shift in trend. Although selling pressure has eased slightly, sellers remain in control.

For a stronger recovery, ADA would need to break above key resistance levels and hold those gains, something that has yet to occur. While Midnight continues to attract attention, Cardano’s price action suggests the market remains cautious, with sentiment recovery still taking priority over development progress.