The market capitalization of the USD Coin (USDC) is approaching a record $80 billion, driven by rising demand in the Middle East, with one analyst linking the surge to potential capital flight from the United Arab Emirates.
According to CoinMarketCap data, USDC’s circulating supply has climbed to roughly $79.2 billion, setting a new all-time high for the dollar-pegged stablecoin. Its previous peak was just under $79 billion in December last year.
The growth follows a sharp expansion in recent weeks. USDC’s market cap was just over $70 billion in early February and increased to around $75 billion earlier this month, reflecting billions of dollars in fresh supply entering the market.
Dubai-based analyst Rami Al-Hashimi suggested that the recent surge in USD Coin (USDC) demand reflects investors moving funds out of traditional markets. In a post on X on Friday, Al-Hashimi claimed that over-the-counter (OTC) trading desks in Dubai have struggled to keep up with demand for the stablecoin.
Dubai property slump may be fueling USDC demand
Al-Hashimi linked the spike in stablecoin demand to turbulence in the United Arab Emirates real estate market. According to him, property prices in Dubai have dropped by roughly 27% this month, prompting investors to shift capital into digital assets.
“War panic. Capital flight. Sellers are bleeding,” he wrote, describing what he believes is a rapid change in investor behavior.
Data from TradingView also indicates a sharp sell-off in the DFM Real Estate Index, which tracks listed real estate and construction companies in Dubai. The index fell from around 16,800 at its recent peak to about 11,516, representing a decline of roughly 31%.
Al-Hashimi added that some property sellers are now accepting cryptocurrency payments directly. According to him, certain listings are even offering discounts for buyers paying with Bitcoin (BTC $70,597).
“Pay in BTC, get 5–10% off,” he wrote, suggesting that the trend highlights rising demand for digital assets during periods of financial uncertainty.
USDC surpasses USDT in adjusted transaction volume
Meanwhile, Mizuho reported that USDC has surpassed Tether’s USDt (USDT) in adjusted transaction volume for the first time since 2019.
According to the bank’s research note, USDC has recorded about $2.2 trillion in adjusted transaction volume so far this year, compared with roughly $1.3 trillion for USDT, giving USDC about 64% of the combined transaction share.
Despite this shift in transaction activity, USDT remains the largest stablecoin by market capitalization, with around $184 billion, well ahead of USDC’s $79 billion.
