The market capitalization of Circle’s USDC stablecoin has surged to a new all-time high of approximately $79.2 billion, driven by significant inflows in recent weeks and highlighting a shift in digital asset demand patterns. According to aggregated data from CoinMarketCap, this figure surpasses the previous peak of just under $79 billion recorded in December 2024, following a steady climb from over $70 billion in early February and $75 billion earlier this month.
The growth coincides with reports of heightened activity in Middle Eastern over-the-counter (OTC) markets. Rami Al-Hashimi, an analyst who identifies as Dubai-based, suggested on social media platform X that local OTC desks are struggling to satisfy demand for USDC, linking the surge to broader capital movements.
Dubai’s Real Estate Downturn and Capital Reallocation
Al-Hashimi posited a direct connection between the USDC demand spike and turmoil in the United Arab Emirates’ property sector. He claimed that Dubai property values have declined roughly 27% in the current month, prompting investors to reallocate capital into digital assets. “War panic. Capital flight. Sellers are bleeding,” he wrote, characterizing the shift as a response to financial uncertainty.
Supporting this narrative, TradingView data shows the DFM Real Estate Index—which tracks listed real estate and construction firms on the Dubai Financial Market—has fallen from a recent high near 16,800 to about 11,516, a drop of approximately 31%. Al-Hashimi further alleged that some property sellers are now accepting cryptocurrency payments and offering discounts, such as 5–10% off for Bitcoin (BTC) transactions, though these claims remain anecdotal and unverified by broader market data.
Context and Caveats
It is important to note that Al-Hashimi operates as an independent analyst and his views are not affiliated with any major financial institution. While his observations align with reported stress in Dubai’s real estate market—a sector historically sensitive to global capital flows—correlation does not confirm causation. The stablecoin supply increase could reflect multiple factors, including institutional treasury management, growth in decentralized finance (DeFi), or cross-border remittance needs independent of regional real estate prices.
USDC Gains Ground in Transaction Volume
Separate research from Japanese investment bank Mizuho indicates that USDC has achieved a significant milestone in transactional activity. In a recent note, the bank reported that USDC’s adjusted on-chain transaction volume year-to-date reached approximately $2.2 trillion, surpassing Tether’s USDT (USDT) at $1.3 trillion for the first time since 2019. This grants USDC about 64% of the combined adjusted transaction share between the two leading stablecoins.
Despite this shift in usage metrics, USDT maintains a commanding lead in total market capitalization at around $184 billion, compared to USDC’s $79.2 billion. The divergence suggests that while USDC is seeing intensified use in certain high-volume corridors, USDT’s broader adoption across exchanges and treasury operations remains substantial.
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