Dogecoin Rise: Meme coin ascendant even as Yellen prompts broader sell-off

Cryptocurrencies (and stock markets) have pulled back after Janet Yellen floated the possibility of raising interest rates — but not even the US Treasury secretary can stop the DOGE.

The meme coin hit another all-time overnight, trading at US60c, on a trading volume of US$38 billion. Dogecoin overtook Ripple’s XRP token to become the fourth most valuable cryptocurrency, with a market cap of US$71 billion, behind Binance Coin, which is collectively worth US$95 billion.

$DOGE HAS FLIPPED $XRP

LMFAO LET’S GOOOOOOOOOOOOOOOOO

— $DOGE TO $2 ❤️ (69 IQ) (@cryptunez) May 4, 2021

At 10.22am AEST, Dogecoin was trading at US55.5c, up 25 per cent from yesterday, 105 per cent for last seven days, and 22,167 per cent for the past 12 months – even as most of the market was in the red.

Bitcoin dragging all markets down as people flee to superior assets such as Dogecoin.

— ∞ CO฿IE (@CryptoCobain) May 4, 2021

If you still think #dogecoin will fail…oh, I’ve got some not so good news for you

— Lil’ Doge (@dogecoin_empire) May 5, 2021

The surge comes amid speculation that Tesla Motors chief executive and self-described “Dogefather” Elon Musk will say or do something to boost Dogecoin during his turn hosting US variety show Saturday Night Live this weekend.

Perhaps not coincidentally, it also began on May 4 — International Star Wars Day (“May the Fourth…”). The token’s last big pump came on April 20, International Cannabis Day.

Happy Star Wars Day! @MattWallace888 @coolhandlucy22 @elonmusk @SlimJim @silvercatttt @mcuban @AssassinHearts @kathy_loveee @Dra_Claudiaa @JeffBezos @dogecoinarmy @dogecoin_empire @adoptmeelonmusk @dogecoindavid @_DOGEARMY_ @_the_doge_ @bbyskele @princessofdoge @doge_mom pic.twitter.com/KWclAVYsNT

— AHG Dogecoin (@albert15302) May 4, 2021

Yellen selloff

Meanwhile, Bitcoin dipped from over US$56,000 at 11pm AEST to just under US$53,500 around 3am after Yellen told an economic forum that ultra-low interest rates might have to “rise somewhat to make sure that our economy doesn’t overheat”.

She later walked back her comments, saying she wasn’t predicting higher rates and respected the US Federal Reserve independence.

Still, cryptos dipped, as did other risk assets. The S&P 500 closed the day 0.7 per cent lower, amid a sell-off of Big Tech shares and other high growth stock, while the Nasdaq Composite shed 1.9 per cent in its worst day since March.

Yellen trying to ruin the party but #dogecoin won’t let her pic.twitter.com/50n9P7qwnH

— Daps (@xDaps) May 4, 2021

At 11.14am AEST, BTC had bounced back somewhat, trading at around US$55,000 ($71,100), down 0.8 per cent from yesterday.

Ethereum was trading at US$3,358 ($4,350), up 0.9 per cent, after briefly breaching the US$3,500 barrier late last night.

Ethereum Classic was the biggest gainer in the past 24 hours, up 45 per cent US$76.86. It had hit an all-time high of US$78.89 around 10.30am, according to Coingolive.

Chainlink, Leo Token, sETH, Waves, Swissborg, THORChain and cETH were the other top 100 coins to hit an all-time high in the past 24 hours.

Uniswap, the No. 9 crypto, was up 6.0 per cent to US$55.90 on the launch of version 3.0 of the decentralised exchange later today.

Forty-eight of the top 100 cryptocurrencies had gained ground in the past 24 hours and the rest had lost it.