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USDC market capitalization surges since the start of the Iran conflict
The market capitalization of the stablecoin USDC ($USDC) has approached $80 billion amid strong demand in the Middle East. Some analysts link the sharp increase to capital outflows from the United Arab Emirates.
The circulating supply of the asset has reached a new all-time high near $79.2 billion. The previous record was set in December last year at just under $79 billion.
The rapid growth in USDC capitalization has been especially noticeable in recent weeks. Source: CoinGecko.
Meanwhile, since the beginning of March, the supply of Tether ($USDT) has remained almost unchanged at around $184 billion.
Supply dynamics of the leading stablecoin USDT. Source: CoinGecko.
Dubai real estate downturn drives demand for USDC
Dubai-based analyst Rami Al-Hashimi links the surge in USDC supply to investors seeking to move capital out of traditional markets. He noted that local OTC trading platforms are struggling to keep up with the surge in demand for stablecoins.
According to the analyst, the trend is largely driven by a crisis in the UAE real estate market. Over the past month, property prices in Dubai have fallen by nearly 27%, prompting a mass migration of capital into digital assets.
“War panic. Capital flight. Sellers taking losses,” he said when describing changes in investor behavior.
Data from analytical platforms confirms significant sell-offs in Dubai’s property sector. The DFM Real Estate index, which tracks property developers’ stocks, plunged 31% from 16,800 to 11,516 points.
Al-Hashimi also noted that the situation has prompted some sellers to accept direct payment in cryptocurrencies. Some listings now include discount offers for payments made in Bitcoin ($BTC).
“Pay in BTC — get a 5–10% discount,” the analyst wrote.
He added that this trend highlights the growing demand for digital assets during periods of financial instability.
USDC vs USDT
According to the Japanese investment bank Mizuho, USDC has surpassed USDT in adjusted transaction volume for the first time since 2019.
Since the beginning of the year, USDC transactions have totaled about $2.2 trillion, while the volume for USDT has reached $1.3 trillion.
As a result, USDC’s share of the total transaction volume has risen to 64%.
The total market capitalization of stablecoins currently stands at around $311 billion. USDT accounts for 59% of the segment, while USDC holds about 25%.
