Recent price data indicates a notable shift in the crypto market, with meme coins losing momentum while DeFi tokens surge.

The GMCI meme coin index, which tracks the performance of leading meme tokens by market capitalization, has shown a stagnant trend since mid-November. After peaking at 523.5 points on Nov. 15, the index has fluctuated around the 500 mark, currently standing at 508.5.

Analysts suggest that the meme coin market may be experiencing fatigue after a series of price spikes driven by exchange listings earlier this month. Min Jung, a research analyst at Presto Research, noted that controversies surrounding platforms like Pump.fun, a meme coin launchpad on Solana, have contributed to this decline.

The platform recently faced backlash after disabling its live-streaming feature due to reports of harmful behaviors.

In contrast, the GMDEFI index, which measures top DeFi tokens, reflects a robust growth trend, rising 35%, from 82.47 on Nov. 14 to 111.43.

Arthur Cheong, founder and CEO of Defiance Capital, pointed to a shift in investor focus back to fundamental projects, highlighting a movement of capital toward Ethereum and DeFi platforms such as AAVE, ENA and ENS.

Market sentiment surrounding DeFi is reportedly improving, particularly following Donald Trump's reelection, with expectations of pro-crypto policies potentially benefiting decentralized finance.

Jung described the current market dynamics as a broader return to projects with solid foundations, suggesting that traders are increasingly seeking value in tokens with established fundamentals.