The market capitalization of the USDC stablecoin is approaching a record high of $80 billion, reflecting rising demand for the dollar-pegged digital asset. Recent data shows that the circulating supply of USDC has climbed sharply in the past few weeks, with analysts pointing to growing interest from investors in the Middle East, particularly the United Arab Emirates.

Figures from CoinMarketCap indicate that USDC’s supply has reached around $79.2 billion, setting a new all time high for the stablecoin. The previous peak was slightly below $79 billion in December last year. The latest surge comes after a steady increase in supply since early February, when the stablecoin’s market cap stood at just above $70 billion. By the beginning of this month it had already climbed to nearly $75 billion.

Rapid Supply Growth in Recent Weeks

USDC has experienced significant expansion in circulation over the past several weeks. Billions of dollars worth of the stablecoin have entered the market as demand increased across multiple regions.

Stablecoins such as USDC are designed to maintain a stable value by being pegged to fiat currencies like the US dollar. Because of this stability, they are often used by investors as a way to move funds quickly between traditional financial systems and digital asset markets.

The recent rise in USDC supply suggests that more investors are turning to stablecoins either for trading purposes or as a safer digital alternative during periods of financial uncertainty.

Analyst Links Demand to Capital Flight in UAE

Dubai based market analyst Rami Al Hashimi has linked the spike in USDC demand to what he describes as capital flight from the United Arab Emirates. In a recent post on social media platform X, Al Hashimi claimed that over the counter trading desks in Dubai are struggling to keep up with requests for the stablecoin.

According to him, investors are increasingly shifting funds away from traditional investments and moving them into digital assets. He described the situation as a combination of geopolitical tension and financial anxiety that is influencing investor behavior.

Al Hashimi also suggested that the trend reflects a broader movement among investors seeking faster and more flexible ways to transfer wealth outside conventional banking channels.

Dubai Real Estate Market Under Pressure

Another factor cited by the analyst is a sharp downturn in Dubai’s property market. Al Hashimi claimed that real estate prices in the city have dropped about 27 percent during the month, which he believes has pushed some investors to move their money elsewhere.

Market data from TradingView supports the view that the sector has faced a significant sell off. The DFM Real Estate Index, which tracks the performance of real estate and construction companies listed in Dubai, has fallen from roughly 16,800 at its recent peak to about 11,516. This represents a decline of around 31 percent.

Such a fall in a short period can trigger concern among investors who hold large amounts of capital in property assets. In times like this, digital assets and stablecoins often become an attractive option for quickly reallocating funds.

Property Sellers Accepting Crypto Payments

The shift toward digital assets is reportedly becoming visible in the property market itself. Al Hashimi noted that some real estate listings in Dubai are beginning to accept cryptocurrency payments directly.

In some cases, sellers are even offering discounts to buyers who pay with digital currencies. According to the analyst, certain listings advertise price reductions of 5 to 10 percent for transactions completed using Bitcoin.

This approach reflects how cryptocurrency is gradually entering mainstream financial transactions, particularly in markets where investors are looking for faster settlement and cross border flexibility.

USDC Surpasses Tether in Adjusted Transaction Volume

While Tether’s USDT remains the largest stablecoin by market capitalization, USDC has recently taken the lead in another important metric. Research from Japanese investment bank Mizuho shows that USDC has surpassed USDT in adjusted transaction volume for the first time since 2019.

The bank’s analysis indicates that USDC has recorded approximately $2.2 trillion in adjusted transaction volume so far this year. In comparison, USDT has seen about $1.3 trillion during the same period.

This gives USDC roughly 64 percent of the combined transaction share between the two leading stablecoins. The shift suggests that USDC is being used more frequently in transactions even though USDT still dominates the market in terms of overall supply.

At present, USDT’s market capitalization stands at about $184 billion, more than double that of USDC. Despite this gap, the recent surge in USDC supply and activity signals growing competition within the stablecoin sector.