storyprotocol

Story (IP) is a Layer-1 blockchain designed specifically to bring intellectual property (IP) on-chain, enabling IP assets to become programmable and tradable in a decentralized environment. In early 2026, the IP token staged an impressive recovery, with its price doubling from a local low near $1.50 to above $3.00.
The sharp rebound has drawn significant market attention, raising questions about what is driving this rally — and whether the current momentum is strong enough to be sustained over the coming weeks.
Korean Investors Lead the IP Rally
Recent trading data suggests that South Korean investors have played a dominant role in driving IP’s price surge.
According to data from CoinGecko, IP’s daily trading volume exceeded $300 million on January 13, marking the highest level since the major sell-off in October last year, when IP lost more than 80% of its value in a single day.
Notably, Upbit, one of South Korea’s largest cryptocurrency exchanges, accounted for more than 47% of total IP trading volume. This concentration highlights the central role of domestic Korean demand in the token’s recent performance.
On Upbit, the IP/KRW trading pair alone represented over 12% of the platform’s total trading activity, ranking just behind XRP/KRW. This level of activity underscores the strong regional interest surrounding Story Protocol.
However, such dominance also suggests that IP’s price increase has been driven largely by localized demand, rather than broad-based global adoption. Some market observers have also pointed to the involvement of large holders, or “whales,” as a contributing factor behind the sudden recovery.
“Story Protocol has been one of the strongest performers this week. With a price increase of more than 30%, IP surged as its investment narrative resurfaced. Massive trading volume emerged as both new investors and whales entered the market,” said Sjuul | AltCryptoGems.
On-Chain User Data Fails to Confirm Network Growth
Despite the sharp rise in price and trading volume, on-chain data presents a far more cautious picture, suggesting that the rally may lack strong fundamental backing.
According to data from Storyscan, the number of active accounts on the Story network has remained extremely low over the past several months. From more than 10,000 active accounts last year, the figure has dropped to below 500, representing a decline of approximately 95%.
Daily new user activity also remains subdued, with fewer than 100 new users per day, compared to an average of over 2,000 daily users during August and September of last year.
These metrics indicate that IP’s recent price surge has been driven primarily by speculative trading activity and rising volume, rather than organic network expansion such as increased IP tokenization or broader real-world application adoption.
Technical Resistance Raises Short-Term Risks
From a technical perspective, analysts are beginning to warn about potential downside risks. On the daily timeframe, IP is now approaching a key resistance zone between $3.00 and $3.30.
“On the daily chart, IP is showing strong candles and positive indicators. However, price is now nearing the $3.0–$3.3 resistance area. A clean breakout could confirm a bullish trend, but patience is required. Traders should wait for confirmation and avoid rushing into positions,” noted CryptoPulse.
While momentum indicators remain constructive in the short term, the lack of corresponding growth in network usage raises concerns about the sustainability of the move.
Long-Term Outlook Remains Uncertain
Despite the recent rebound, IP is still trading nearly 80% below its all-time high of $15 reached last year. This context highlights that, while short-term momentum has returned, the token remains deep in recovery territory.
Ultimately, Story Protocol’s long-term outlook will depend on real user adoption, meaningful demand for decentralized intellectual property management, and the successful expansion of applications built on the network.
Without a clear resurgence in on-chain activity, the current rally may remain vulnerable to volatility and corrective pullbacks.
Disclaimer:
This article is for informational purposes only and reflects a personal market analysis. It does not constitute financial or investment advice. Always conduct your own research before making any investment decisions. The author assumes no responsibility for any financial losses.
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$IP ​If yesterday you saw Story Protocol ($IP) surge like foam and today you're wondering why it's deflating, I'll explain a bit about what happened.

What happened today with Story Protocol ($IP) was not just any adjustment: it was a mandatory upgrade and a hard fork of the network. Sounds complicated, but basically it was a technical improvement to make the network faster and capable of supporting many more users (what they call scalability). It was the "big engine" they used to excite everyone, even driving the price up by 4.20 USDT, but now that it's already installed, those who bought earlier simply decided it was time to cash out with their profits.