[Analysis] "War shock... USDC demand surges in the UAE"

The market capitalization of the dollar-pegged stablecoin USDC has surged, with capital flows originating from the United Arab Emirates (UAE) being cited as a key driver.

According to Cointelegraph, a digital-asset news outlet, USDC’s market cap stood at about $79.2 billion as of the day. It was around $70.0 billion last month, but has jumped in recent weeks.

Analysts say the move reflects rising demand for stablecoins across the Middle East. With geopolitical risks escalating amid clashes involving Israel, the United States and Iran, demand has grown to shift funds into safe-haven assets.

Analyst Rami Al Hashimi wrote on X (formerly Twitter) that “in Dubai’s over-the-counter (OTC) market, demand for USDC is rising so fast that supply cannot keep up.”

Al Hashimi added that “as Dubai real estate prices have fallen by about 27%, investors are moving funds into digital assets,” and that “capital outflows driven by fears of war are beginning.”

TradingView data show that Dubai’s DFM Real Estate Index has recently plunged about 30%, from roughly 16,800 to 11,500.