"Culper Research: Why We Remain Firmly Short on ETH" (Compiled by: Deep Tide TechFlow)



Short-selling firm Culper Research believes that Ethereum's tokenomics have deteriorated following the 2025 Fusaka upgrade: the expansion of block space has caused Gas fees to decline approximately 90%, yet real demand has not grown in sync. On-chain activity growth is primarily driven by address poisoning attacks and dust transactions, accounting for roughly 95% of new wallets and over 50% of transaction volume growth. Meanwhile, validator rewards have declined and developer growth lags behind Solana. Combined with competition and L2 diversion, Ethereum's fundamentals are weakening, therefore the firm maintains its short position. Read the full article:
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