Shiba Inu SHIB surges with new game feature burning tokens and driving demand

Shiba Inu (SHIB) has introduced a new game feature that could potentially drive up the demand for its token. The game, Agent Shiboshi, includes a 1v1 duel format where players can compete and claim 80% of their wagered tokens. Notably, 10% of each wager will be allocated to burning SHIB, which could reduce the token's circulating supply and create scarcity.

To participate in these duels, players must pay an entry fee of 50,000 SHIB, which is approximately $0.6825. With 10% of this fee going towards the burn pool, it translates to roughly 7 cents worth of SHIB burned per duel. This mechanism could potentially reduce the supply of SHIB as more players engage in the game, which could drive short-term price increases.

Token burns are a common strategy in the cryptocurrency world to reduce the circulating supply of a token, creating scarcity that can drive up its price. SHIB has been resilient in the face of market weakness, posting gains for four consecutive days despite a broader meme coin market decline. However, it has yet to fully recover from a sharp decline earlier in the week.

The daily chart for SHIB shows that the asset is still on a downtrend. To reverse this, SHIB would need to break above the $0.00001530 level in the next few days. Momentum indicators, such as the Relative Strength Index (RSI) and the MACD histogram, show some bullish signs but no clear direction. This suggests that while there is potential for an upside, it is currently limited.

Despite the market's overall weakness, SHIB's new game feature and the potential for increased demand and reduced supply could provide a boost to its price. The introduction of the 1v1 duel format in Agent Shiboshi is a strategic move that could attract more players and increase the token's utility, further driving its value.