DeFi tokens outperform memecoins in growth
The growing popularity of DeFi tokens
Memecoins have lost their upward momentum since mid-November, while DeFi token prices continue to rise steadily, as shown by the GMCI Index data.
According to The Block, the index indicates stagnation in the aggregate value of memecoins over recent weeks. As of publication, the index was at 508.5, hovering around the 500 mark since mid-November. Earlier, during the first half of the month, the index had surged significantly from 274.5 on November 1 to 523.5 on November 15.
"The memecoin market appears overheated due to token listings on exchanges in mid-November, but investor fatigue is growing, exacerbated by scandals like Pump.fun," commented Min Jung, an analyst at Presto Research.
Pump.fun, a platform for launching memecoins on Solana, recently disabled its live streaming feature following reports of harmful behavior, including threats of self-harm, child abuse, and animal abuse.
"Many memecoins have shifted their focus to AI and other niches, while investors increasingly look to small-cap tokens for potentially higher returns compared to large-cap memecoins," Jung added.
DeFi market dynamics
Meanwhile, the GMCI index for DeFi tokens has shown significant growth over the past two weeks. As of writing, the GMDEFI index reached 111.43, marking a 35% increase from 82.47 recorded on November 14.
"We're seeing capital flow back into ETH and EVM-based DeFi projects like AAVE, ENA, and ENS," said Arthur Cheong, CEO of Defiance Capital.
Cheong identified two simultaneous trends: memecoin traders are reallocating capital to DeFi, or memecoin hype is fading, pushing traders toward tokens with stronger fundamentals.
Optimism around DeFi has gained traction following Donald Trump's reelection as U.S. President, spurring hopes for pro-crypto policies and a decentralized future in mainstream finance.
Presto's Min Jung views the trend as a "broader rotation" toward fundamental projects. "The expected rate-cut cycle is also supporting the 'DeFi 2.0' thesis, channeling capital into DeFi and driving recent token surges," Jung emphasized.
Meanwhile, MetaMask co-founder has highlighted the risks of Web3 in the memecoin experiment.
