Memecoins
US credit card holders most stressed since 2012
The American consumer is finding it increasingly difficult to keep up with their credit card loan payments, painting a difficult picture of the economy and speculative activity in non-serious assets like memecoins.
The percentage of credit card loans in serious default, with balances outstanding for more than 90 days, increased to 10.69% in the first quarter, the highest since the second quarter of 2012. recently published data by the Federal Reserve Bank of New York. Even though balances decreased by $14 billion to $1.12 trillion in the first quarter, they remained 13.1% higher than the previous year.
Cracks in consumer finances are one of the most concerning economic data points, Austan Goolsbee, president of the Federal Reserve Bank of Chicago, said. said earlier this year, adding that it’s often a leading indicator that “things are about to get worse.”
Growing debt means a decrease in disposable income and a lower propensity to invest in risky assets such as memecoins. According to Borrowing constraints may lead individuals to keep a smaller proportion of their wealth in illiquid and risky assets, according to an article by Luigi Guiso, Tullio Jappelli and Daniele Terlizzese in the American Economic Review.
It is interesting to note that meme coins, which are considered among the the most risky digital assets, have been under pressure over the past four weeks, falling more than market leader Bitcoin (BTC). Top coins by market value, like DOGE, SHIB, and WIF, fell more than 20% compared to Bitcoin’s 2.4%. Coingecko the data shows.
Even if consumer finances weaken, this does not necessarily mean a complete collapse of coins, as degens could persist. Degens, or people engaged in high-risk speculative trading in the crypto market, are not fundamentally different from the early adopters of the internet, Qiao Wang of AllianceDAO said in a statement. blog postcharacterizing them as: “financial risk-takers who are brave enough to try unproven products.”
They don’t pay attention to metrics, tokenomics, fundamental analysis or technical analysis, as noted Ledger Academy and are “committed to the projects and communities in which they invest.”
Kelly Greer, head of Americas sales at Galaxy, said Degens would likely remain active in the market despite rising debt levels.
“60% of Americans have credit card debt and it continues to rise. It’s no coincidence that gambling and degeneracy are also proliferating, @zerohedge may be right that the economy is done for – but I do not agree that dying with it, degens will play longer than the economy remains solvent”,. Greer said on X.