Since mid-November, leading memecoins have lost momentum, while tokens DeFi increased in price.
The GMCI Memcoin Index, which measures the performance of leading meme tokens by market capitalization, shows that their aggregate price performance has been sideways over the past few weeks.
GMCI Index for Major Memcoins
At the time of writing, the index was 508,5. Since mid-November, the index has hovered around 500, after a significant rise earlier in the month, when the index rose from about 274,5 on November 1 to 523,5 on November 15.
The memecoin market appears to be overheated, with token prices seeing a sharp rise in mid-November following exchange listings, followed by growing investor discontent over controversial projects like Pump.fun.
Investors are now increasingly gravitating toward small-cap tokens, seeking higher returns compared to larger-cap meme tokens, said Presto Research analyst Min Jung.
At the same time, the GMCI index for major tokens DeFi shows that they have risen significantly over the past two weeks. At the time of writing, the index was 111,43, up 35% from 82,47 on November 14.
GMCI Index for Major Tokens DeFi
We've seen money return to ETH, projects DeFi , deployed on the EVM network, such as AAVE, ENA and ENS, said Arthur Chong, founder and CEO of investment company Defiance Capital.
Chong suggested that soon memcoin traders will start moving capital into DeFi -projects that have gained momentum since the election of Donald Trump. Crypto investors are optimistic that the new president’s pro-digital asset policies could potentially pave the way for a decentralized future in traditional finance.
