Cardano ecosystem token NIGHT drops over 27% in one day amid oversupply, airdrop selling, and broader crypto market weakness.
The Cardano ecosystem faced renewed turbulence as NIGHT posted a sharp daily decline. The token fell about 27%. As a result, market sentiment dropped considerably. Data indicated NIGHT trading for close to $0.075 on December 23rd, 2025. The drop was preceded by extreme volatility since launch.
NIGHT Leads Market Losses During Risk-Off Crypto Session
NIGHT, the governance token of the Cardano-based Midnight Network, was the worst performer. This was first in lost tokens among the top 100 tokens in terms of market value. Therefore, the decline was part of a general risk-off mood. Total market cap for the crypto assets also fell in the session.
The price action of the token followed a familiar path after the launch. NIGHT launched on December 9, 2025. Prices first spiked dramatically. However, the rally soon reversed. From peak levels, NIGHT eventually collapsed by almost 90 percent according to data from CoinMarketCap.
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Airdrop-related selling is still the dominant pressure point. Early recipients from the Glacier Drop airdrop sold furiously. As a result, short-term profit-taking was too much for the demand. Heavy transfers from early wallets to exchanges are visible on-chain trackers.
Oversupply brought another blow to the downturn. More than 16 billion NIGHT tokens were released into circulation at the time of launch. Market liquidity had a hard time absorbing that amount. As a result, excess supply put steady downward pressure on a wide range of trading venues.
The broader market conditions added new pressure. Both Bitcoin and Ether traded lower for the same period. Therefore, the speculative assets suffered magnified losses. The risk appetite across altcoin markets remained weak through day.
Within the Cardano ecosystem, sentiment also softened. ADA recorded small dips together with less trading volumes. This weakness bled into related projects. Thus, there was correlated selling pressure on ecosystem-linked tokens.
Volatility Highlights Structural Risks for Newly Launched Tokens
Despite severe losses, the volume of trading remained high. Volumes increased enormously as prices dropped. Analysts pointed to large intraday ranges of more than 30 percent. Therefore for NIGHT, the price discovery is not settled during early market phases.
Market players thrust to structural launch dynamics. Airdrop-heavy distributions are often associated with immediate selling waves. Without phased unlocks, supply floods exchanges very quickly. As a result, price stability is hard to come across in the first trading weeks.
CoinMarketCap data revealed the entirely diluted valuation of NIGHT is falling under $6 billion. Circulating supply measures stayed the same. However, sentiment indicators continued flashing caution. Any renewed selling may send prices crashing to new lows.
Importantly, Midnight Network continues development in Cardano’s roadmap. The project deals with smart contracts with privacy. Governance participation is still at the heart of NIGHT’s utility. Yet, near-term price action overshadows investor focus.
In the past, airdrop-driven sell-offs tended to slow down once early exits had ended. However, more widespread market weakness makes recovery difficult. Liquidity conditions are still tight throughout digital asset markets. Therefore, rebounds may be met with resistance.
All in all, the decline of NIGHT highlights the dangers of launching into feeble markets. The combination of oversupply, profit taking and bearish sentiment came quickly. As the conditions change, traders will monitor whether selling pressure will ease. Until then, volatility is likely to continue to be high.
