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.