Midnight Sidechain Momentum (20 August 2025) – Privacy-focused chain gains institutional traction ahead of NIGHT airdrop.
Overview
The SEC postponed its verdict on Grayscale’s spot Cardano ETF to 26 October 2025, aligning with delays for other altcoin ETFs like XRP and DOGE. The regulator cited concerns over investor protections and market structure, reflecting its cautious stance on non-Bitcoin crypto products.
What this means
This delay maintains uncertainty for ADA’s institutional adoption but underscores growing demand for regulated altcoin exposure. Approval in October could mirror Bitcoin/ETH ETF tailwinds, while rejection might pressure ADA’s 50% YTD gains. (MEXC News)
Overview
Cardano’s community voted 74% in favor of withdrawing 96M ADA ($71M) from its treasury to fund core upgrades like Hydra (layer-2 scaling), Ouroboros Leios (consensus optimization), and modular node architecture.
What this means
This marks Cardano’s shift to decentralized governance, with milestone-based funding ensuring accountability. Upgrades aim to boost throughput and developer experience, addressing criticisms of slow execution while reinforcing ADA’s research-driven ethos. (CCN.com)
Overview
Cardano’s privacy-focused Midnight chain has secured over 100 institutional partnerships, including Brave Software, ahead of its NIGHT token airdrop in November. The sidechain uses zero-knowledge proofs for compliant DeFi and RWA use cases.
What this means
Midnight positions ADA as a bridge between regulated finance and blockchain privacy. Its success could diversify Cardano’s utility beyond smart contracts, though competition from Ethereum’s Fhenix and Polygon’s Miden looms. (Bitcoinist)
Cardano faces short-term headwinds from ETF delays but is advancing long-term bets on scalability (Hydra), governance (community treasury), and institutional adoption (Midnight). With the SEC’s October decision and Midnight’s launch nearing, will ADA’s “slow and steady” approach finally convert skeptics? Monitor Q4 protocol milestones and altcoin ETF sentiment shifts.
