The market capitalization of the USDC stablecoin is nearing its historical high of $80 billion, a surge primarily driven by increased demand in the Middle East. An analyst has linked this phenomenon to capital outflows from the United Arab Emirates.
Recently, the supply of USDC has increased by several billion dollars within weeks. The market cap of this stablecoin just surpassed $70 billion at the beginning of February, reaching $75 billion at the start of this month.
The decline in the UAE real estate market may be driving the demand for USDC.
Al Hashimi connects the rising demand for stablecoins with the turmoil in the UAE real estate market. He noted that property prices in Dubai have dropped by about 27% this month, prompting investors to quickly shift capital into digital assets.
“War panic. Capital outflow. Sellers are getting hit hard,” he described the rapid change in investor behavior.
“Paying with Bitcoin can enjoy a 5-10% discount,” he added, reflecting the growing demand for digital assets during times of financial uncertainty.
USDC has surpassed USDt in adjusted trading volume.
Despite the shift in activity, USDt remains the largest stablecoin by market cap at approximately $184 billion, far exceeding USDC's $79 billion.