US EditionEthereum's In A 'Death Spiral,' Report Says—And Co-Founder Vitalik Buterin Seems To Agree
Culper Research warns Fusaka upgrade slashed Ethereum fees by 90%, risking validator rewards and network security amid scams and insider sell-offs.
- On Thursday, short seller Culper Research published a report calling Ethereum's economics 'impaired' and warning of a 'death spiral', and it has accumulated approximately 4.4 million ETH.
- The December 2025 Fusaka upgrade flooded the network with excess block space, and fees collapsed by roughly 90%, gutting the EIP-1559 burn mechanism.
- Culper short seller analyzed all ETH transactions from January 2025 to February 2026 and found 95% of new wallet growth post-Fusaka came from spam, with address-poisoning dust transfers now accounting for 22.5% of transactions, a threefold increase, after testing with two fresh wallets.
- BitMine Immersion Technologies now faces heavy unrealized losses with a $7.9 billion paper loss on its 4,473,587 ETH holdings and had not responded to requests for comment.
- Our claim is that ETH, as a token, is broken, and will not capture any of that value, Culper said, warning lower validator yields could reduce staking demand and network security.
13 Articles
13 Articles
Bitcoinist
Ethereum Under Pressure As Researchers Issue Critical Report
Ethereum is facing renewed scrutiny after Culper Research released a sharply critical report outlining its bearish stance on the second-largest cryptocurrency by market capitalization. The reporter argues that the key aspects of the ETH ecosystem and long-term narrative may be weaker than widely believed, prompting the firm to disclose that it has taken a short position against the asset. Culper Research Outlines Key Risks Facing Ethereum’s Ecos…
Culper Research Shorts Ethereum, Warns ETH Could Face a ‘Death Spiral’
Culper Research is shorting Ether, citing falling network fees. The firm says some Ethereum activity may be inflated by spam transactions. Culper Research has recently said that it has opened a short position against Ether and warns that recent changes to the blockchain could weaken its long-term economic model. They say that a falling network event could hurt incentives that keep the system secure. In a recent report, Culper Research disclosed …
Culper Shorts Ethereum, Says Buterin Selling Signals More Pain Ahead
Culper Research disclosed a short position in ether and ETH-linked securities on Thursday, arguing that Ethereum’s post-upgrade economics have deteriorated enough to put sustained downside pressure on the token. The firm pointed directly at Ethereum’s December 2025 Fusaka upgrade, and at Vitalik Buterin’s recent sales, as evidence that “ETH is going lower.” “NEW: We are short Ether ETH, and ETH-linked securities, incl. BMNR,” Culper wrote on X. …
Coverage Details
Bias Distribution
- 67% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
