The percentage of credit card loans in serious delinquency in the US has reached a decade-high, potentially indicating a challenging period ahead for the economy and speculative activities like meme coin investments. According to the New York Federal Reserve, the rate of credit card loans with balances outstanding for over 90 days increased to 10.69% in the first quarter, the highest since 2012.

Despite a decline in balances during the first quarter, they remain 13.1% higher than the previous year, totaling $1.12 trillion. Austan Goolsbee, President of the Chicago Federal Reserve Bank, has expressed concerns about cracks in consumer finances, which can serve as a leading indicator of economic downturns. Increased debt levels lead to reduced disposable income and a decreased willingness to invest in risky assets like meme coins.

Research suggests that borrowing constraints can result in individuals allocating a lower proportion of their wealth to illiquid and risky assets. Meme coins, considered high-risk digital assets, have experienced significant declines in recent weeks, with top meme coins like DOGE, SHIB, and WIF dropping over 20% against bitcoin's 2.4% decline.

However, high-risk speculative traders, known as 'degens', may continue to engage in the market despite mounting debt levels. Kelly Greer, Head of Americas Sales at Galaxy, believes that degens will persist in their activities, potentially supporting meme coin markets. While the rise in credit card delinquency may signal economic uncertainty, its impact on speculative investments like meme coins remains to be seen.

The relationship between consumer finances and speculative investments is complex, and the current trends may not necessarily lead to a complete collapse in meme coin markets. However, the data suggests a cautious approach may be warranted, as economic uncertainty and increased debt levels may influence investor behavior and market dynamics.