Culper Research has reiterated its short position on Ethereum, citing a deteriorating token economic model following the 2025 Fusaka upgrade. The firm highlights that while block space expansion has led to a 90% reduction in gas fees, actual demand has not increased correspondingly. The growth in on-chain activity is largely attributed to address poisoning attacks and dust transactions, which account for approximately 95% of new wallets and over 50% of transaction volume growth. Additionally, Culper Research points out that validator earnings have declined, and developer growth is lagging behind Solana. Combined with increased competition and Layer 2 solutions diverting activity, Ethereum's fundamentals are perceived to be weakening, reinforcing the firm's bearish outlook.