Meme coins dive while DeFi sectors surge

Meme coins, including TRUMP and MELANIA, suffered notable declines, with TRUMP plummeting nearly 40% and MELANIA over 66%, resulting in a 15% drop in the entire meme coin sector.

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The crypto market experienced mixed fortunes following Donald Trump’s inauguration on 20 January, with meme coins taking a significant hit while other sectors showed resilience. Meme coins such as TRUMP and MELANIA saw sharp declines, with TRUMP falling by nearly 40% and MELANIA dropping by over 66% within 24 hours. Overall, the meme coin sector lost around 15%, according to SoSoValue.

Meanwhile, decentralised finance (DeFi) and the emerging DeFAI sector, which blends DeFi with artificial intelligence, recorded notable gains. Raydium led the DeFi market with a 12% rise over the last day, reaching $7.46. However, the broader DeFi sector saw a slight dip, now valued at $121 billion.

The DeFAI sector outperformed expectations, growing its market cap by 15% to exceed $2.8 billion. Top players in this category, aixbt by Virtuals and Griffain, remain dominant, contributing nearly 37% of the total market cap. While meme coins falter, these innovative sectors continue to show promise, marking a shift in investor focus.