Culper Research has taken a short position in Ethereum ($ETH), claiming that a “death spiral” is imminent based on on-chain data from January 2025 to February 2026. They assert that about 95% of new wallet growth following the December 2025 Fusaka upgrade is due to dusting, which constitutes approximately 22.5% of ETH transactions and contributes significantly to recent transaction growth. The firm also notes a dramatic decline in validator revenues and heightened competition from Solana. These claims, particularly an alleged sale of over 19,000 ETH by Vitalik Buterin, have sparked backlash from the Ethereum community, which criticizes the report for blending speculation with facts.
Culper Research takes short position in Ethereum, cites death spiral concerns
