Shiba Inu (SHIB) has seen a remarkable surge of 921.31% in token burns over the past day, with around 45.16 million tokens destroyed. This uptick in burning signals increased investor confidence and a concerted effort to reduce SHIB's circulating supply, which could drive its value higher.
Despite this record-breaking burn rate, SHIB's price has recently declined noticeably. Experts attribute this drop to a slowdown in buying activity from both retail and institutional investors. As uncertainty looms over the market, SHIB's Chaikin Money Flow (CMF) remains negative, indicating a lack of demand for the altcoin.
Adding to the challenge, approximately 21% of SHIB holders currently engaging in transactions are realizing profits, suggesting many may be inclined to sell their tokens in anticipation of further market downturns. This potential sell-off could worsen the decline in SHIB's price.
Meanwhile, SHIB's Shibarium Layer-2 network is gearing up for a May 2 upgrade, which could stabilize and potentially strengthen the token's price. However, for the time being, the market is fraught with uncertainty, with investors adopting a cautious stance as they await developments.
