"The meme coin market seems to be overheated. Listings on exchanges led to price jumps in tokens in mid-November, followed by growing investor fatigue," said Min Jung, an analyst at Presto Research.

Jung also pointed out that the expected cycle of rate cuts supports the thesis that lower rates direct capital into DeFi. And since the Ethereum blockchain is the largest platform for launching decentralized finance (DeFi) applications, experts expect a positive reaction from Ethereum. Also, the entire segment of DeFi category tokens showed better performance in returns and social media activity after the U.S. elections in early November.