Analyst attributes USDC's climb toward $80B milestone to UAE capital exodus
The market capitalization of USDC is climbing toward an unprecedented $80 billion level, with analysts attributing the growth to investor exodus and instability within Dubai's property sector.
The dollar-pegged USDC stablecoin is witnessing its market capitalization climb toward an unprecedented peak of $80 billion as Middle Eastern demand experiences a significant uptick, with an industry analyst attributing this surge to funds fleeing the United Arab Emirates.
Data sourced from CoinMarketCap indicates that USDC's circulating supply has climbed to approximately $79.2 billion, establishing a fresh all-time record for the stablecoin that maintains parity with the U.S. dollar. The digital asset's market capitalization had reached a previous peak of just under $79 billion during December of the prior year.
This upward trajectory follows an expansion of multiple billions of dollars in the stablecoin's supply throughout recent weeks. The market capitalization of the stablecoin registered slightly above $70 billion during the initial days of February and reached $75 billion at the beginning of the current month.
Dubai-based analyst Rami Al-Hashimi, who identifies himself as such, asserted that the dramatic increase mirrors rising demand from market participants attempting to transfer capital away from conventional investment vehicles. In a Friday publication on the X platform, Al-Hashimi reported that over-the-counter (OTC) trading desks operating in Dubai have encountered difficulties satisfying the appetite for the stablecoin.
Dubai property slump may be driving USDC surge
Al-Hashimi connected the spike in demand for stablecoins to upheaval affecting the real estate market in the UAE. The market observer asserted that real estate valuations in Dubai have experienced a decline of approximately 27% throughout this month, triggering a wave of investors rushing to transfer their holdings into digital currencies.
"War panic. Capital flight. Sellers are bleeding,"
he stated, characterizing what he described as a swift transformation in how investors are behaving.
Information from TradingView further demonstrates that the DFM Real Estate Index, an indicator monitoring the performance of publicly traded real estate and construction enterprises in Dubai, has experienced a dramatic sell-off, with the benchmark declining from approximately 16,800 at its most recent high point to roughly 11,516, representing a drop of about 31%.
Al-Hashimi asserted that the circumstances have additionally prompted certain property vendors to accept digital currency payments in direct transactions. He indicated that specific real estate offerings currently promote price reductions for purchasers who complete transactions using Bitcoin (BTC).
"Pay in BTC, get 5–10% off,"
he noted, suggesting that the development illustrates increasing appetite for digital assets amid times of economic instability.
USDC overtakes USDt in adjusted transaction volume
Japanese financial institution Mizuho reports that USDC has eclipsed Tether's USDt (USDT) in adjusted transaction volume for the first occurrence since 2019. Based on the financial institution's research documentation, USDC has registered approximately $2.2 trillion in adjusted transaction volume on a year-to-date basis, in contrast with $1.3 trillion for USDt, providing USDC with around 64% of the combined transaction share.
Notwithstanding this transition in market activity, USDt continues to hold its position as the predominant stablecoin measured by market capitalization at approximately $184 billion, significantly exceeding USDC's $79 billion.