Price Data Shows Memecoin Declining as DeFi Tokens Soar

The crypto market is witnessing a sharp shift between asset classes. Memecoin is starting to decline while DeFi tokens are surging. Specifically, the GMCI Memecoin Index, which measures the performance of meme tokens, has dropped to around 500 after peaking at 523.5 in mid-November. The decline is attributed to the saturation of the memecoin market, along with concerns about scam projects in the space, such as the Pump.fun platform, which has sparked discussions about the safety of memecoin.

DeFi tokens, on the other hand, are gaining attention, with the GMCI DeFi Index increasing by 35% in just the past two weeks. This shows that large flows are shifting from memecoin to DeFi projects, such as AAVE and ENS, as investors look for more sustainable value in decentralized finance. Improvements in economic policies, especially after Donald Trump's re-election, also contributed to the positive sentiment in the DeFi market, creating conditions for the "DeFi 2.0" wave to develop.