The USDC stablecoin’s market capitalization is reaching a record high of nearly $80 billion as demand in the Middle East surges, with one analyst linking the rise to capital flight from the United Arab Emirates.
According to data from CoinMarketCap, the circulating supply of USDC (USDC) has risen to nearly $79.2 billion, marking a new all-time high for the dollar-pegged stablecoin. The stablecoin’s market cap previously hit an all-time high of just under $79 billion in December last year.
Supply has risen in recent weeks after billions of dollars in expansion. The stablecoin’s market cap was just shy of $70 billion in early February and $75 billion earlier this month.
Self-proclaimed Dubai-based analyst Rami Al-Hashemi claimed the increase reflected growing demand from investors looking to move funds out of traditional markets. In a Friday post on X, Al Hashemi said over-the-counter (OTC) desks in Dubai have struggled to keep up with demand for the stablecoin.
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A drop in Dubai property could cause the USDC to rise.
Al-Hashemi linked the rise in demand for the stablecoin to the turmoil in the UAE’s real estate market. Property prices in Dubai have fallen by around 27 percent this month, fueling a rush among investors to shift capital into digital assets, the analyst claimed.
“War panic. Capital flight. Sellers bleeding,” he wrote, citing what he said was a sharp shift in investor behavior.
Data from TradingView also showed that the DFM Real Estate Index, which tracks the performance of Dubai-listed real estate and construction companies, suffered a sharp sell-off, with the index falling to around 11,516 from its recent peak of around 16,800, a decline of around 31 percent.
Al-Hashemi claimed that this situation has forced some property sellers to accept cryptocurrency payments directly. Some real estate listings now advertise discounts for buyers who pay with Bitcoin (BTC), he said.
“Pay in BTC, get 5-10% off,” he wrote, adding that the trend reflects growing demand for digital assets amid financial uncertainty.
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USDC outperforms USDt in adjusted transaction volume.
Japanese investment bank Mizuho says USDC has overtaken Tether’s USDt (USDT) in adjusted transaction volume for the first time since 2019. According to the bank’s research note, the USDC recorded about $2.2 trillion in annual adjusted transaction volume, compared with $1.3 trillion for the USDt, which provided a 4 percent stake.
Despite the shift in activity, USDt remains the largest stablecoin by market capitalization at around $184 billion, far ahead of USDC’s $79 billion.
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