USDC, the popular stablecoin, is edging closer to a historic market capitalization of $80 billion, driven by an uptick in demand as investors move their funds, primarily from the United Arab Emirates, due to economic uncertainties.
Recent figures from CoinMarketCap indicate that the circulating supply of USDC has surged to about $79.2 billion, which sets a new record for this dollar-pegged stablecoin, previously peaking at under $79 billion in December.
The growth is attributed to billions added to its supply in recent weeks, with early February marks showing it stood just over $70 billion and reaching $75 billion earlier this month.
USDC market cap
USDC market cap. Source: CoinMarketCap
Analyst Rami Al-Hashimi noted that this rise reflects a surge in investor demand as they look to transfer their investments from traditional markets. In a statement on social media, he pointed out the rising difficulties OTC desks are facing in Dubai in satisfying this demand for USDC.
Slump in Dubai’s Real Estate Linked to USDC Demand
Al-Hashimi also connects the heightened interest in USDC with the slump in the UAE’s real estate market, pointing out that property prices in Dubai have plummeted by 27% this month, prompting investors to shift their capital into digital assets.
He stated,
“War panic. Capital flight. Sellers are bleeding.”
According to TradingView, the DFM Real Estate Index has experienced a significant sell-off, dropping from 16,800 at its peak to approximately 11,516, indicating a decline of around 31%.
This challenging market has led some real estate sellers to accept cryptocurrency, with offers indicating 5–10% discounts for buyers who transact in Bitcoin (BTC).
USDC Surpasses USDt in Transaction Volume
In related news, Mizuho, a prominent investment bank, revealed that USDC has overtaken Tether’s USDt in adjusted transaction volume for the first time since 2019, with USDC noted for approximately $2.2 trillion year-to-date compared to USDt’s $1.3 trillion. Despite this activity, USDt remains the dominant stablecoin by market cap, currently around $184 billion.
