Cardano Falls 3% in Ongoing Market Pullback, Midnight Token Drop Triggers Whipsaw Action

Cardano Slips 3% as NIGHT Airdrop Sparks Sell-Off and Market Uncertainty

Cardano’s ADA token dropped nearly 3% over the past 24 hours, sliding to $0.72 amid broader market weakness and volatility linked to the launch of Midnight’s NIGHT token airdrop. The asset struggled to hold the $0.740 level, as distribution pressure weighed on intraday momentum.

ADA experienced a 3.47% trading range, rising from $0.734 to a session high of $0.760 before fading under resistance. Despite a brief rebound to $0.755, sellers regained control, pushing the token to a close around $0.739. Trading volumes spiked to 59 million, reflecting active distribution during price swings.

The CoinDesk 20 Index fell by 1.7%, with Bitcoin mirroring the decline. ADA underperformed slightly, dragged by token-specific flows linked to Midnight’s Glacier Drop.

The airdrop, part of a phased rollout by Cardano-affiliated project Midnight, distributed 2.62 billion NIGHT tokens — 11% of its total supply — to wallets associated with XRP addresses. Additional token allocations are expected for ETH, SOL, BNB, AVAX, BAT, and other eligible assets.

Cardano founder Charles Hoskinson noted institutional interest in the privacy-focused Midnight chain, stating in a recent interview, “We’ve met with all the big guys,” referring to firms evaluating its potential for anonymous transactions.

Separately, Cardano’s development entity, Input Output Global (IOG), secured on-chain approval for a $71 million treasury proposal to fund 12 months of ecosystem upgrades. While passed, the vote drew scrutiny from parts of the community, with questions raised around transparency and spending oversight.