The USDC stablecoin’s market capitalization is nearing a record high of nearly $80 billion as demand grows in the Middle East, with one analyst linking the rise to capital outflows from the United Arab Emirates.
According to The circulating supply of USDC (USDC) has increased to approximately $79.2 billion, according to CoinMarketCap data, a novel record for a dollar-pegged stablecoin. The stablecoin’s market capitalization previously peaked at just under $79 billion in December last year.
The escalate comes after supply increased by billions of dollars in recent weeks. The stablecoin’s market capitalization was just over $70 billion at the beginning of February and $75 billion earlier this month.
Self-proclaimed Dubai-based analyst Rami Al-Hashimi he claimed the surge reflects growing demand from investors looking to move funds away from customary markets. In a Friday post on X, Al-Hashimi wrote that OTC outlets in Dubai are struggling to meet demand for the stablecoin.
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Dubai real estate crisis may fuel USDC growth
Al-Hashimi linked the escalate in demand for stablecoins to the turmoil in the UAE real estate market. The analyst said property prices in Dubai have fallen by about 27% this month, prompting a rush among investors to shift capital into digital assets.
“War panic. Capital flight. Sellers are bleeding,” he wrote, describing what he believed to be a rapid change in investor behavior.
Data also from TradingView can be seen that the DFM Real Estate Index, which tracks the performance of Dubai’s listed real estate and construction companies, has suffered a pointed sell-off, with the index falling from a recent peak of around 16,800 to around 11,516, a decline of around 31%.
Al-Hashimi claimed that the situation has also prompted some real estate sellers to directly accept cryptocurrency payments. He said some real estate listings are now advertising discounts for buyers who pay with Bitcoin (BTC).
“Pay BTC, get 5-10% off,” he wrote, adding that the trend reflects rising demand for digital assets during periods of financial uncertainty.
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USDC exceeds thousand USD in terms of adjusted transaction volume
Japanese investment bank Mizuho says USDC has exceeded Tether’s (USDT) adjusted transaction volume for the first time since 2019. According to the bank’s research note, USDC has seen approximately $2.2 trillion in adjusted transaction volume year-to-date, compared with $1.3 trillion in USD tons, giving USDC approximately 64% of total transaction share.
Despite the shift in activity, USDt remains the largest stablecoin by market capitalization, at around $184 billion, well ahead of USDC’s $79 billion.
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