IP Rallies 26% as South Korean Exchange Upbit Drives Volume

The price of Story Protocol’s IP token surged 26% over the previous 24 hours, peaking at $2.90, driven largely by trading activity on South Korean exchange Upbit. This uptick coincided with a renewed community engagement initiative targeting long-term holders, which has likely contributed to increased sentiment and volume.

Despite the strong price performance, on-chain data reveals that the number of active accounts on the Story network has declined by about 95% from previous levels. The number of daily new users also remains far below the average seen earlier in the year, raising questions about the sustainability of the rally.

South Korean traders have played a significant role in the price surge, with Upbit alone accounting for over 47% of the total trading volume. This concentration suggests that the rally is largely regional and may be influenced by retail demand.

What Drives the IP Price Surge?

The IP price surge is primarily attributed to concentrated regional demand from South Korea, particularly through Upbit. The exchange drove nearly $272 million in trading volume, a 789% increase from previous days. This concentrated buying pressure reflects retail enthusiasm in a region known for volatile altcoin rallies according to analysis.

Technical indicators also show bullish momentum, with the token reclaiming key resistance levels and breaking out of a prolonged downtrend. The RSI has surged into positive territory after months in oversold conditions, signaling renewed buying pressure.

Is the IP Rally Sustainable?

Despite the strong price movement, on-chain data suggests a disconnect between the price and fundamental user adoption. The number of daily active accounts has dropped to fewer than 500, far below levels seen earlier in the year. This decline raises concerns about the sustainability of the rally and the potential for a correction.

The Story Protocol OG Program, which rewards early contributors and active community members, has likely contributed to the positive sentiment around the token. This initiative emphasizes long-term engagement and may help stabilize the price in the short term according to the program details.

However, the concentration of trading volume on Upbit introduces volatility risks. If the flow reverses, the price could experience significant fluctuations. Broader participation beyond South Korea will be necessary to sustain the rally.

What Lies Ahead for IP Strategy and the Ecosystem?

IP Strategy, which operates a validator for the Story Protocol and holds IP tokens as a primary reserve asset, transitioned to a custodied, long-term staking configuration in December 2025. This move is expected to increase blended staking yields over time while maintaining institutional-grade custody and security according to their update.

The company reported staking 39.9 million unlocked IP tokens by the end of December, generating approximately $4.68 million in revenue. With an estimated blended yield of 5.64%, the staked tokens could generate around 2.25 million IP tokens annually, assuming consistent yields according to financial analysis.

The project is also preparing for a major network upgrade and hard fork on January 14, 2026. These upgrades aim to enhance security, scalability, and governance, potentially driving long-term utility for the IP token as reported.

IP Vaults and PoC Protocol V2 are set to launch in Q1 2026, expanding on-chain use cases for confidential IP data and AI-native licensing. These upgrades may provide additional catalysts for price movement but will require execution and adoption to be effective according to the roadmap.