☠️ Ethereum could enter a “death spiral.” 🔻
Culper Research has opened a short position on $ETH and related equities, including BitMine, claiming that the network’s economics have deteriorated after the Fusaka upgrade.
Key points from the report:
• Ethereum network fees have dropped by ~90% after the upgrade.
• Lower fees reduce validator revenue and staking yield, potentially weakening network security.
• The growth in transactions and active addresses may be distorted by spam activity and address poisoning scams.
• If the network’s real utility doesn’t grow, Ethereum could enter a “death spiral.”
Let’s see how these bets play out in the end…
When there’s this much FOMO being pushed, in my experience the market usually does the exact opposite.