Key Takeaways
What triggered investor fear and bearish sentiment around Story?
A recent audit revealed smart contract vulnerabilities, prompting concern and a lack of response from Story, deepening anxiety. 🐍💸
How have IP’s on-chain activity and liquidity responded to the negative sentiment?
Daily active users, transactions, and TVL have all dropped sharply, with $810,000 in IP sold and DEX volume hitting a monthly low. 📉📉
Story [IP] has witnessed one of the most significant declines in the market over the past day, showing clear signs of weakening sentiment. 🧛♂️
Reports on the state of the chain have sparked fear among investors across the market, pushing many to turn bearish and bet against its potential recovery. 🤡
Vulnerabilities spark investor fear
A recent audit of Story’s smart contract, conducted by AI security firm BitsLab, revealed two vulnerabilities, one of medium severity and the other of low severity. 🧪
While these issues are not expected to result in any immediate loss of funds, the report triggered a strong reaction from investors. Many interpreted the findings as a red flag, sparking concern across the market. 🚨
To make matters worse, Story has yet to issue a response to BitsLab’s audit. This silence has likely intensified investor anxiety at the time of writing. 🤐
On-chain participation drops
According to Artemis, activities on-chain have continued to plummet. Users are beginning to churn, exiting the protocol in growing numbers. 🏃♂️💨
Daily active users in the market have fallen to a new low of 1,600, one of the lowest points in the past three months, compared to over 13,000 active users previously, nearly an 88% drop. 📈➡️📉
Transactions have also moved sideways as user activity declines. The latest readings show about 303,000 transactions, significantly lower than previous levels facilitated on the protocol. 🧠
Liquidity declines
The churn in users has reflected in the protocol’s revenue and liquidity over the past day. 💸
Reports from DeFiLlama show that the Total Value Locked (TVL), which tracks the amount of IP staked across protocols, has recorded a major decline. 📉
Investors offloaded approximately $810,000 worth of IP into the market, which led to an increase in its circulating supply. 🚀
At the same time, chain fees dropped sharply to just $124, reflecting reduced network activity. 💸
Moreover, trading volume across decentralized exchanges (DEXs) also declined. DEX volume fell to $303,000, its lowest level since the 2nd of November, when prices were significantly lower. 🕵️♂️
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2025-11-06 22:36