 ▲ Ethereum (ETH) © |
A critical report claiming that Ethereum’s network structure and token economy are being fundamentally shaken has reignited intense debate in the market.
According to cryptocurrency media outlet Bitcoinist on March 8 (local time), investment research firm Culper Research disclosed that it has taken a short position on Ethereum (ETH) and released a report pointing out structural weaknesses across the ecosystem. The report argued that Ethereum’s long-term narrative may be more fragile than the market perceives.
The report stated that following last year’s Fusaka upgrade, block space expanded significantly, leading to an approximately 90% drop in transaction fees. Culper Research analyzed that declining fees could reduce validator revenues, potentially weakening the staking-based economic structure.
It also suggested that the recent increase in transaction volume and active addresses may not reflect genuine network growth but rather spam transactions and address-poisoning attacks. The report claimed that about 95% of new wallets created between January 2025 and February 2026 could be associated with such attack activities. In addition, it estimated that roughly 22.5% of total transactions may be linked to so-called dusting attacks.
The report also mentioned that Ethereum founder Vitalik Buterin sold approximately 19,000 ETH, representing about 8% of his total holdings. However, it noted that this sale should not necessarily be interpreted as a loss of confidence in the project or an exit from the market.
Meanwhile, Coinbureau CEO Nic explained that Ethereum’s structure maintains the flexibility to adjust its economic model through future protocol upgrades or forks. While not endorsing a particular stance, he emphasized that the fact that a research firm committed actual capital to a short position based on detailed analysis is a noteworthy signal for the market.
Disclaimer: This article is for investment reference only and we are not responsible for any investment losses resulting from it. The content should be interpreted for informational purposes only.