Experts Dismiss Doubts On Midnight's Impact For Cardano Network As Glacier Drop Phase 2 Closes
As Phase 2 of the Midnight Glacier Drop comes to a close, experts have highlighted a raft of upsides that the privacy network provides to Cardano. The pundits argue that Midnight will improve Cardano’s...
As Phase 2 of the Midnight Glacier Drop comes to a close, experts have highlighted a raft of upsides that the privacy network provides to Cardano. The pundits argue that Midnight will improve Cardano’s liquidity levels, while others are eyeing the windfall from a streak of deals and collaborations inked by the privacy-focused network.
Midnight To Improve Cardano Amid Imminent Launch
Reports of a December 8 launch for Midnight have sparked speculation about the impact of the privacy-focused sidechain on the Cardano network. Pseudonymous Cardano delegate representative Dan took to X to highlight several benefits from Midnight’s imminent launch, despite operating as a distinct layer 1 blockchain.
“Midnight’s launch has people considering its impact on Cardano,” said Dan. “While it doesn’t share Cardano’s security model (operating as its own L1 rather than an L2), it still supports Cardano in several indirect ways.”
Right off the bat, Cardano stake pool operators producing Midnight blocks can generate a second revenue stream, thereby improving their earning potential. Apart from the benefits to SPOs, Dan argues that a significant portion of NIGHT’s liquidity will remain on Cardano.
To strike home his point, the Cardano DREP noted that a chunk of WMTX holders remain on Cardano after World Mobile Chain transferred its base of operations to Ethereum. Phase 1 of the Glacier Drop distributed 50% of NIGHT tokens to ADA holders, while requiring a Cardano wallet to interact with the airdrop is considered a boost to network adoption.
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“Cardano apps that integrate Midnight can allow users to easily move between them,” said Dan. “This, of course, has some potential to siphon liquidity from Cardano, but the overall effect could be positive if Midnight brings in new users who end up interacting with both chains.”
The DREP argued that Midnight’s streak of partnerships and collaborations will offer Cardano a raft of opportunities. Back in October, Midnight inked a partnership with Google Cloud to advance zero-knowledge technology, with Charles Hoskinson describing it as a step in the right direction.
The Scavenger Mine, Phase 2 of the Glacier Drop, has officially closed, drawing thousands of participants in the hunt for unclaimed NIGHT tokens. For now, participants have their sights on December 8 as the tentative launch date for Midnight on Cardano, with Hoskinson drumming up support for the privacy-themed project.
Ahead of launch, Cardano’s ADA is trading at $0.43 after losing nearly 8% of its valuation over the last week. In the last month, ADA has shed 32.01%, bearing the brunt of the broader cryptocurrency market slump.
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