We have seen that Muslims, some even today, refer to all of Jerusalem as "Bayit al Maqdis', the Arabic equivalent of the Hebrew Beit HaMikdash, the Holy Temple. In this coin it calls Jerusalem the "City of the Holy Temple" and the menorah, symbol of the Temple, leaves no doubt that they were referring to the Jewish Temple in Jerusalem.
I had written about the Muslim Menorah coins before, and there is an interesting theory that would explain both there are only five branches, why the base has two legs instead of three that the Menorah had, and (possibly) why the tops have a horizontal line instead of flames. There were other Muslim coins that portrayed a seven-branch menorah.
Either way, the many Jerusalem Muslim coins with the menorah show that the Muslims always knew that the Temple was built there, indeed that is why the Dome of the Rock was built where it was.
Not that this is the only proof, of course.