The market capitalization of the USDC stablecoin is approaching a record high near $80 billion, driven by surging demand in the Middle East. One analyst links this spike to capital flight from the United Arab Emirates, where a sharp downturn in the Dubai property market may be prompting investors to shift funds into digital assets.
The market capitalization of the USDC stablecoin is approaching a record high near $80 billion as demand surges in the Middle East. A self-proclaimed Dubai-based analyst, Rami Al-Hashimi, linked the spike to capital flight from the United Arab Emirates.
According to data from CoinMarketCap, USDC’s circulating supply has risen to roughly $79.2 billion. The stablecoin’s market cap previously hit a high of below $79 billion in December last year.
In a Friday post on X, Al-Hashimi said over-the-counter desks in Dubai have struggled to meet demand for the stablecoin. “War panic. Capital flight. Sellers are bleeding,” he wrote, describing a rapid shift in investor behavior.
Al-Hashimi tied the surge in stablecoin demand to turmoil in the UAE’s real estate market. The analyst claimed property prices in Dubai have fallen roughly 27% this month, sparking a rush among investors to move capital into digital assets.
Data shows that the DFM Real Estate Index has suffered a sharp sell-off, declining roughly 31%. Al-Hashimi also claimed some property sellers are now accepting cryptocurrency payments directly, with listings offering discounts for payments in Bitcoin.
Japanese investment bank Mizuho says USDC has surpassed Tether’s USDt in adjusted transaction volume for the first time since 2019. The bank’s research note states USDC recorded about $2.2 trillion in adjusted transaction volume year-to-date, compared with $1.3 trillion for USDt.
Despite the shift in activity, USDt remains the largest stablecoin by market capitalization at about $184 billion. This figure is far ahead of USDC’s current $79 billion market cap.
