In a post on social media platform X, Dubai-based analyst Rami Alhashimi pointed out that the surge in USDC is related to a widespread demand among investors to move funds out of traditional markets. He noted that Dubai's over-the-counter trading desks are struggling to keep up with the demand for USDC. This statement aligns with the growing narrative of stablecoins serving as a bridge for cross-border capital flows in regions facing currency volatility or capital controls. Despite concerns over the softness of the UAE's real estate market, the liquidity perspective highlights another use case for stablecoins: as an always-accessible liquidity layer pegged to the US dollar, with relatively low barriers to use compared to traditional banking systems.
The softness of Dubai's real estate market may be driving the surge in USDC
In addition to the specific situation in Dubai, market observers have noted significant changes in the global use of stablecoins. According to a report from Mizuho Bank, USDC has surpassed USDt (CRYPTO: USDT) in adjusted trading volume to date. The bank's notice indicated that USDC's adjusted trading volume is approximately $2.2 trillion, while USDt stands at about $1.3 trillion, with the former accounting for around 64% of total trading volume. Although USDt remains the dominant stablecoin by market cap (approximately $184 billion), the surge in USDC's on-chain trading volume indicates an evolution in user preferences and liquidity patterns. This dynamic suggests that liquidity is not static; it migrates as market participants seek efficiency, settlement speed, and regulatory clarity across different venues.
Overall, these numbers depict a market increasingly reliant on stable liquidity while becoming more sensitive to regional macro events. The growth in USDC supply and the associated rise in on-chain activity indicate that investors are placing greater value on predictable settlement and cross-border transfer capabilities. At the same time, the continued large market cap of USDt reminds us that the stablecoin market remains fragmented, with different assets occupying unique roles in portfolios and trading desks. While some observers point to capital flowing into newer stablecoins, others warn that regulatory and counterparty risks remain core concerns for market participants relying on these digital currencies for everyday payments and liquidity provision.
Why This Matters
For users and developers, the ongoing expansion of USDC's market influence further solidifies the role of stablecoins as a core liquidity layer in the crypto market. As demand for efficient settlement and cross-border transfers grows, stablecoins provide a familiar, dollar-pegged settlement mechanism that operates around the clock, reducing reliance on traditional financial systems. This can lower barriers to use for both institutional and retail traders, particularly in regions where currency controls or capital outflow issues drive a preference for stablecoins.