Millions of SHIB Go Up in Smoke as Shiba Inu Burn Rate Skyrockets by 207%

Dog-themed cryptocurrency Shiba Inu (SHIB) has witnessed a significant surge in token burns, with a remarkable 192% increase in the last 24 hours. The recent surge in burns has led to the removal of millions of SHIB tokens from circulation, with the Shiba Inu community taking part in the activity to create scarcity.

According to the Shibburn X account, a total of 4,796,486 SHIB tokens were burned in the last 24 hours, representing a 207.81% increase in burn rate.

This notable spike in SHIB token burns comes at a time when the market is eagerly anticipating a significant price shift amid lackluster trading activity in Bitcoin and other major cryptocurrencies, including SHIB.

This week's muted action in Bitcoin, which has generally remained in the $67,000-$69,000 zone, coincided with struggles for other risk assets, U.S. stocks among them.

Shiba Inu is also experiencing profit-taking, declining into its fourth day after an impressive surge earlier in the week.

After three consecutive days of increases, Shiba Inu jumped as much as 20% to reach highs of $0.0000294 on May 29. However, following this impressive ascent, the dog-themed coin is now experiencing a phase of profit-taking as investors seek to capitalize on the gains.

At the time of writing, SHIB was down 2.18% in the last 24 hours to $0.00002473, coinciding with a broader market decline that saw most cryptocurrencies trading in red.

The market's reaction to the present profit-taking phase might be crucial in determining SHIB's short-term price trajectory. If the selling pressure is absorbed by buyers, the price may stabilize or even continue its upward trajectory. On the other hand, if the profit-taking leads to a more sustained sell-off, it could test the support levels of the SHIB price.

In this scenario, Shiba Inu sustaining above the daily SMA 50 at $0.00002454 could be critical in maintaining SHIB's upward price momentum and preventing additional losses.