- Memecoin momentum slows as market stabilizes post November peaks
- DeFi tokens surge, driven by optimism around innovation and pro-crypto policies
- Volume trends show investor fatigue in memecoins, highlighting cyclical market patterns
The crypto market is witnessing a shift as memecoins, which saw a sharp rally earlier in November, now show signs of cooling off.
Simultaneously, DeFi tokens are gaining momentum, supported by strong market trends and increased investor attention. Data highlights a clear divergence between the stagnation in memecoins and the upward trend in DeFi assets.
Memecoin Market Peaks and Stabilizes
The GMCI memecoin index, a benchmark tracking major meme tokens by market capitalization, reveals a cooling trend. After surging from 274.5 points on November 1 to a peak of 523.5 on November 15, the index has now stabilized near 500. As of publication, the index stands at 512.36, reflecting a slight decline from earlier highs.
Source: TradingView
The mid-November memecoin rally was driven by exchange listings, which boosted prices temporarily. However, changing market conditions led to reduced enthusiasm, as investors explored alternatives like microcap tokens, AI-based coins, and DeFi.
Market analyst Daan Crypto Trades observed that while the total capitalization of memecoins jumped from $57 billion to $123 billion in one month, their share of the overall crypto market rose modestly from 2.5% to 4%. This rapid growth phase is now accompanied by signs of investor fatigue.
Volume Trends Signal Investor Fatigue
Volume trends in the memecoin market provide further evidence of declining momentum. According to data from CryptoCondom, the Meme Index’s volume peaked on March 5 before hitting a higher high on November 13.
Read also: Memecoin Markets Under Pressure: Dogwifhat, Bonk, Memecoin, Neiro, DOGS
Source: X
However, volume declines suggest a cyclical pattern, marked by sharp surges followed by corrections. The lower-time frame view argues that the November 13 spike was fueled by volatile trading and a cooling-off period marked by distribution and reduced activity.
DeFi Tokens on the Rise
In contrast, the GMDEFI index, which tracks top DeFi tokens, has experienced solid growth. Rising from 82.47 on November 14 to 111.44 at present, the index reflects a 35% increase in just two weeks.
Source: TradingView
Moreover, Political developments, including Donald Trump’s reelection, have raised positive sentiment around DeFi, renewing hopes for pro-crypto policies.
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