In January 2026, the Story (IP) price experienced a strong rebound, rapidly rising from a cyclical low of nearly $1.50 and briefly breaking through the $3.00 mark, with a total increase of nearly 100%. This performance has brought renewed market attention to the Layer-1 sector. However, based on the overall price trend and on-chain data, the structural divergence behind this rally is gradually becoming apparent.
From a trading perspective, the recent main driver of IP prices has been the Korean market. Public market data shows that in mid-January, the daily transaction volume of IP exceeded $300 million at one point, hitting a new high since the sharp decline in October last year. At that time, IP experienced an extreme correction of over 80% in a single day. The concentrated surge in transaction volume now indicates a significant increase in short-term capital activity, but overall, this demand is more regional rather than a synchronized global phenomenon.
Some market participants believe that a narrative revival combined with concentrated capital inflows is a key reason for the rapid rebound of IP. Investor Sjuul | AltCryptoGems pointed out that with speculative funds and some large addresses entering the market, IP trading activity has significantly increased, amplifying price volatility. Such trends are not uncommon among small- and mid-cap public chain tokens.
However, contrasting with the price increase are the on-chain fundamentals. Data from Storyscan shows that the number of active accounts on the Story network has shown little sign of recovery over the past few months. The active user base has fallen from tens of thousands at its peak to less than 500, a decline of over 95%. Meanwhile, the daily new user count on the network has been consistently below 100, far from the summer last year when the daily average exceeded 2,000.
These data suggest that the current IP price increase is more driven by trading behavior and sentiment rather than genuine demand for usage, such as an increase in the number of IP assets on-chain or the expansion of application scenarios. Overall, the fundamentals have yet to provide effective support for the price.
From a technical perspective, the IP price has approached a critical resistance zone between $3.00 and $3.30. Analyst CryptoPulse warned that although short-term momentum indicators are positive, the risk of chasing gains near key resistance levels is significant, and traders should wait for a confirmed breakout.
In summary, even though the IP price has doubled in a phased manner, its current level is still about 80% below the peak of around $15 last year. Whether the upward trend can continue in the future largely depends on actual user growth on the Story network and whether the demand for decentralized IP management will truly materialize.
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