Why did the price of IP fall?

Story (IP) dropped 2.48% in the past 24 hours, adding to a 37.6% decline over the last 30 days. Here’s why:

1. Overall Crypto Market Weakness – Rising geopolitical tensions and uncertainty about Federal Reserve interest rate changes weighed on altcoins.
2. Technical Breakdown – The price fell below important moving averages, signaling a bearish trend.
3. Weak On-Chain Fundamentals – Low fees generated by the protocol and risks from upcoming token unlocks raised concerns.
4. Negative Sentiment Spillover – Controversies involving companies shifting away from crypto hurt investor confidence.

Deep Dive

1. Market-Wide Risk Aversion (Bearish Impact)

Crypto markets dropped about 2.3% on October 16–17, driven by escalating U.S.-China trade tensions and uncertainty over Federal Reserve interest rate decisions (The Defiant). Bitcoin’s market share increased to 59.05%, showing investors moving money out of altcoins like IP. The Fear & Greed Index fell to 34, indicating a cautious, risk-averse mood.

What this means: IP’s price drop is part of a broader trend where investors reduce risk by favoring Bitcoin over smaller cryptocurrencies during uncertain times.

2. Technical Breakdown (Bearish Impact)

• Price vs. Moving Averages: IP is trading below its 7-day simple moving average (SMA) of $5.37 and 30-day SMA of $7.38, confirming a downward trend.
• Relative Strength Index (RSI): The 14-day RSI is at 38.46, suggesting the coin is oversold but without signs of a rebound yet.
• Fibonacci Resistance: The current price of $5.25 is below the 23.6% retracement level of $9.48 from its 2024 high, indicating resistance to upward movement.

What this means: Technical indicators point to continued bearish momentum. If IP’s price rises above $5.33, it could stabilize. But falling below $5.00 might trigger more selling.

3. Fundamental Concerns (Mixed Impact)

• Low Protocol Revenue: Story generates roughly $15 per day in fees (source), which raises questions about how sustainable its $1.69 billion market value is.
• Token Unlock Risks: About 41.6% of IP’s tokens are still locked but will gradually become available through 2027, which could increase selling pressure.

What to watch: Growth in daily active users and new partnerships, like the integration with Lombard Bitcoin, which could boost fee revenue.

Conclusion

The recent drop in IP’s price reflects a combination of broader market challenges, technical weakness, and doubts about its valuation compared to actual usage. While the partnership with Lombard, which allows Bitcoin-backed monetization of IP, offers promising long-term potential, short-term risks remain high.

Key point to watch: Will IP hold the $5.00 support level, or will Bitcoin’s dominance and upcoming token unlocks push the price lower?

What could affect the price of IP?

Story (IP) is advancing AI-powered intellectual property (IP) innovation while facing challenges from token supply increases and market risks.

1. Programmable IP Growth – Planned V2 upgrades may boost demand for AI and data licensing (Story Protocol).
2. Token Unlock Risks – Nearly 42% of tokens will unlock by 2026, which could lead to price pressure (EdgenTech via X).
3. Bitcoin Liquidity in Korea – Partnership with Lombard targets Korea’s $13.6 billion creative market (Crypto.news).

Deep Dive

1. Protocol Upgrades & AI Licensing (Positive Outlook)

Overview:
Story’s upcoming Chapter 2 roadmap includes launching IP Vaults by late 2025 for secure data storage and upgrading to Ethereum-compatible technology. These improvements aim to help users monetize AI training data. Since July 2025, the network has handled 1.7 million IP transactions, including applications in K-pop royalties and biomedical patents.

What this means:
If successful, Story could become the go-to blockchain for programmable IP licensing, linking demand for its $IP token to growth in AI and data markets. However, it needs to outpace competitors like City Protocol to maintain price gains.

2. Token Unlock Schedule (Potential Downside)

Overview:
About 21.6% of tokens are allocated to early investors and 20% to core team members, with these tokens unlocking gradually through 2026. Analysts highlight that daily revenue from the protocol is around $45, which is low compared to its $8.3 billion fully diluted valuation. This raises concerns that selling pressure from unlocked tokens could outweigh demand driven by the platform’s utility (AnonVee via X).

What this means:
Past examples, like Aptos in 2022, show that large token unlocks can cause significant price drops (up to 60%). Story’s $82 million buyback program and partnerships with companies like Heritage Distilling may help offset this risk, but sustained selling pressure remains a concern.

3. Expanding in the Korean Market (Mixed Outlook)

Overview:
Through its partnership with Lombard, Story enables Bitcoin-backed royalty payments for popular IP holders such as Solo Leveling, which has over 14 billion views. Additionally, Seoul Exchange plans to tokenize $450 billion in real-world assets (RWAs) on Story’s blockchain by 2026 (Decrypt).

What this means:
Success in Korea, a country with strong interest in crypto but strict regulations, could prove Story’s real-world value. However, focusing heavily on one market exposes the project to risks from local regulatory changes, such as stablecoin approvals.

Conclusion

Story’s future price depends on balancing growing platform use with the impact of increasing token supply. Partnerships in AI, data, and Korean markets offer significant upside potential. Technical indicators show weak momentum (RSI at 38, MACD negative), but a support level at $3.82 could provide a price floor unless broader market conditions worsen.

A key question remains: Will inflows from Grayscale’s IP Trust be enough to counteract selling pressure from token unlocks?

What are people saying about IP?

Conversations around Story (IP) are swinging between big potential and concerns about upcoming token unlocks. Here’s what’s trending right now:

1. Institutional support from Grayscale Trust and Heritage Distilling’s $360 million IP treasury
2. Growing AI and IP connection with Verse8 gaming partnerships (Moonbirds/Azuki)
3. Tokenomics challenges: $82 million buyback versus 41.6% token unlocks by 2026
4. Skeptics’ concerns about daily fees of $17–$45 not matching the hype

Deep Dive

1. @StoryProtocol: Institutional backing lifts confidence 🟢

“IP is an $80 trillion asset class and key to AI’s progress”
– @StoryProtocol (1.2M followers · 2.8M impressions · 2025-08-11 12:40 UTC)
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What this means: Heritage Distilling’s $82 million buyback and Grayscale’s Trust involvement show strong institutional belief in IP’s role in tokenized royalties and AI data. Still, these positive moves come before major token unlocks in 2026, so there’s a “prove it” period ahead.

2. @AnonVee_: Valuation vs. revenue gap raises doubts 🔴

“Story Protocol ($IP): $8.2 billion fully diluted valuation vs. $15/day fees. Investors break even in 4525?”
– @AnonVee_ (89K followers · 412K impressions · 2025-08-31 04:00 UTC)
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What this means: Critics point out a big mismatch between the project’s valuation ($1.7 billion market cap) and its actual on-chain revenue. With 73% of tokens still locked, there’s a risk of inflation if user adoption doesn’t pick up.

3. @SkylineETH: Korean IP market heats up 🟢

“Parasite, Baby Shark, Solo Leveling – Story becomes Korea’s culture chain”
– @SkylineETH (216K followers · 1.1M impressions · 2025-09-25 19:55 UTC)
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What this means: Partnerships with major Korean content like Parasite and Baby Shark, plus Upbit’s 30% trading volume share, point to strong regional growth. But long-term success depends on turning this hype into steady value locked in the platform, beyond the current $100 million music catalog.

Conclusion

The overall view on Story (IP) is cautiously optimistic. Institutional interest highlights the promise of programmable IP in AI and entertainment, but risks remain from upcoming token unlocks and limited revenue so far. Keep an eye on the IPKit SDK adoption rate after launch—if developer activity increases, it could confirm Story’s role as the “Layer 0 for culture” before the big 2026 token unlocks.

What is the latest news about IP?

Story is navigating the challenges of corporate crypto adoption and a volatile market. Here are the latest updates:

1. Corporate Crypto Treasury Growth (October 22, 2025) – Story teams up with Heritage Distilling as more companies start using crypto in their finances.
2. Bitcoin-Backed IP Payment System (October 16, 2025) – Lombard integrates Bitcoin technology into Story’s platform to enable global royalty payments.
3. Market Downturn Effects (October 16, 2025) – Story’s token, IP, dropped 9% amid a wider crypto market decline linked to geopolitical tensions.

Deep Dive

1. Corporate Crypto Treasury Growth (October 22, 2025)

Overview:
Story has partnered with Heritage Distilling to create a Digital Asset Treasury (DAT). This is part of a larger trend where over 200 public companies started holding cryptocurrencies in 2025. These DATs are designed to make investing in crypto easier for companies. However, some critics are concerned about risky speculation and executives selling stocks after switching to crypto.

What this means:
This development is neutral for Story. While partnerships like the one with Heritage Distilling help expand the use of Story’s platform, there are concerns about the risks and ethics of turning niche assets into tokens. This trend shows Story’s growing role in corporate crypto strategies but also highlights the potential for market ups and downs. (AP News)

2. Bitcoin-Backed IP Payment System (October 16, 2025)

Overview:
Story and the Bitcoin-based decentralized finance (DeFi) platform Lombard have partnered to allow royalty payments and intellectual property (IP) security using Bitcoin. This system uses Bitcoin as collateral for licensing deals and automates dispute resolution through smart contracts.

What this means:
This is a positive development for Story. By leveraging Lombard’s $3 billion Bitcoin liquidity and South Korea’s $13.6 billion creative market, Story strengthens its position in programmable IP rights. Instant Bitcoin payments could attract creators looking for revenue that protects against inflation. (Crypto.News)

3. Market Downturn Effects (October 16, 2025)

Overview:
Story’s token, IP, fell 9% to $5.76 on October 16, following a broader crypto market decline. This drop happened alongside rising U.S.-China trade tensions and uncertainty about Federal Reserve interest rate cuts, which led to $647 million in liquidations across crypto markets.

What this means:
This is a negative sign in the short term but reflects larger economic trends. Over the past 30 days, IP’s price has dropped 37.5%, much more than the overall crypto market’s 3.38% decline. This suggests specific challenges for Story, such as low daily protocol fees (around $15) and a high fully diluted valuation ($8.4 billion).

Conclusion

Story is working to connect intellectual property with the crypto economy, showing ambition through partnerships and new technology. However, broader market risks and concerns about speculative corporate crypto treasuries add uncertainty. The key question is whether partnerships like Lombard’s will lead to lasting growth or if token unlocks and low revenue will hurt investor confidence.

What is expected in the development of IP?

Story’s roadmap centers on building AI-focused intellectual property (IP) infrastructure and growing its ecosystem.

1. IP Vault Launch (Late 2025) – A secure on-chain storage solution for sensitive IP data.
2. Strategic Partnerships (Q4 2025) – Expanding into gaming and entertainment IP markets.
3. Confidentiality Research (2026) – Developing privacy-focused IP transaction methods.
4. Tokenomics Adjustments (Ongoing) – Managing inflation risks with buyback programs.

Deep Dive

1. IP Vault Launch (Late 2025)

Overview:
Story plans to launch its IP Vault on the developer network (devnet) in late 2025, followed by testnet and mainnet releases in 2026. This feature will securely store encryption keys for IP assets—like AI training data—hosted on decentralized storage platforms such as IPFS or Shelby. It will also allow programmable access controls, so owners can manage who accesses their data (Story Foundation).

What this means:

• Positive: This enhances the platform’s usefulness for businesses and AI projects like Poseidon (supported by a16z), enabling them to monetize sensitive data securely.
• Risk: The success depends on proving the system’s security against hacks or breaches.

2. Strategic Partnerships (Q4 2025)

Overview:
Story is partnering with Moonbirds and Azuki NFT projects to bring their IP into Verse8’s AI-powered gaming platform. This allows creators to remix content and earn automated royalties (Daily Hodl). Additionally, Story is teaming up with Barunson, the studio behind the film Parasite, to launch nPLUG, an IP remixing platform, in late 2025.

What this means:

• Positive: Opens new revenue opportunities in the gaming industry (valued at over $200 billion) and film, leveraging Story’s programmable licensing technology.
• Neutral: The impact depends on how well Verse8’s existing user base (over 800,000 monthly active users) adopts these features.

3. Confidentiality Research (2026)

Overview:
Story’s research team, collaborating with Stanford’s FDCI, is working on advanced privacy technologies like zero-knowledge proofs and hybrid encryption. These will enable private IP transactions that remain auditable, protecting sensitive information while ensuring transparency.

What this means:

• Positive: This is crucial for attracting regulated industries, such as biotech, where patent confidentiality is vital.
• Challenge: The technical complexity may delay these features beyond 2026.

4. Tokenomics Adjustments (Ongoing)

Overview:
To manage inflation caused by token unlocks (about 41.6% of supply vesting by 2029), the Story Foundation is conducting an $82 million token buyback through December 2025.

What this means:

• Positive: This reduces selling pressure on the token. The $80 million investment from Heritage Distilling shows strong institutional confidence.
• Risk: Daily revenue from the protocol remains low (around $45), raising questions about long-term sustainability (The Defiant).

Conclusion

Story’s roadmap emphasizes integrating AI, forming strategic partnerships, and building infrastructure for valuable IP use cases. While milestones like the IP Vault and privacy tools could strengthen its position, success depends on turning developer interest (with over 200 teams building on Story) into real revenue. The key question remains: can Story’s tokenomics handle the large token unlocks in 2026 amid changing adoption rates?

What updates are there in the IP code base?

Story’s software is improving with stronger security, more validators, and new support for Ethereum compatibility.

1. Security Patch (October 23, 2025) – A required update that fixes important security issues for node operators.
2. Validator Expansion (August 8, 2025) – Increased the number of active validators from 64 to 80, making the network more decentralized.
3. Ethereum Pectra Support (August 19, 2025) – Added support for Ethereum’s latest upgrade to enable better cross-chain compatibility.

Deep Dive

1. Security Patch (October 23, 2025)

Overview: Story version 1.3.3 is a mandatory update for all validators running on the mainnet and testnet. It fixes critical security problems that could affect network stability and prevent potential attacks.

This update addresses vulnerabilities found through a bug bounty program, including issues with transaction validation and reward distribution. Node operators need to update quickly to keep the network running smoothly.

Why it matters: This is good news for $IP because stronger security lowers risks and builds trust among institutional validators and developers. (Source)

2. Validator Expansion (August 8, 2025)

Overview: The Polybius upgrade increased the number of active validators from 64 to 80. This reduces the risk of centralization and makes the network’s consensus process more reliable.

Before the mainnet rollout, these changes were tested on the Aeneid Testnet. The update also introduced limits on validator commission rates and improved command-line tools for managing keys.

Why it matters: This is a neutral but important step for $IP. More validators support long-term governance goals by making the network more decentralized, but it depends on continued participation. (Source)

3. Ethereum Pectra Support (August 19, 2025)

Overview: The Cosmas release added compatibility with Ethereum’s Pectra upgrade (EIPs 7702, 2537). This allows Story to work smoothly with Ethereum-native tools and smart contracts.

Developers can now use Ethereum’s latest features like improved gas calculations and modular transaction formats while building IP-focused decentralized apps (dApps) on Story.

Why it matters: This is positive for $IP because it attracts Ethereum developers and expands Story’s ecosystem through cross-chain interoperability. (Source)

Conclusion

Story’s recent updates focus on security, decentralization, and aligning with Ethereum—key factors for its AI-driven intellectual property infrastructure. While these changes might not immediately affect prices, they strengthen the network’s foundation for adoption by institutions.

What new milestones might Story pursue next to enhance its AI-native capabilities?