March 6 News: New York-based short-selling firm Culper Research disclosed that it is shorting Ethereum (ETH) and related stocks, including BitMine (BMNR), despite ETH recently surpassing $2,000. In its latest report, Culper stated that the Ethereum Fusaka upgrade could weaken its token economic model, claiming that Vitalik Buterin’s judgment on blockchain expansion and transaction fee changes is better than market bulls, including Tom Lee.
The report shows that the Fusaka upgrade will raise the Layer 1 gas limit from 45 million units to 60 million units, theoretically reducing transaction fees by 10-30% and increasing activity. However, Culper noted that actual transaction fees have plummeted by about 90%, leading to low-value transactions filling blocks, reduced validator rewards, decreased staking demand, and thus impacting network security. Culper also pointed out that BitMine, as a major Ethereum holder, may face risks with its $4.47 million worth of ETH.
Additionally, Vitalik’s recent sale of ETH was interpreted by Culper as a potential bearish signal. The report states that after the Fusaka event, 95% of new wallets are linked to “cash-out” wallets, with phishing attacks tripling, explaining over 50% growth in ETH transactions. Culper believes these signs indicate potential issues with Ethereum’s token economic model.
However, Ethereum Daily countered this view. The platform pointed out that declining fees will promote Layer 2 adoption, with daily burn amounts reaching $1.2 billion, still supporting the token economy; active addresses increased by 117%, mainly driven by real users; validator ecosystem remains stable, with staked ETH accounting for 66%, and block rewards and annual yields remaining healthy. BitMine’s balance sheet is solid, earning $350 million annually from staking fees and holding over $3 billion in cash equivalents.
Overall, while ETH briefly broke above $2,000, debates around the Fusaka upgrade and on-chain economic models continue. Market opinions on Ethereum’s long-term value and stability are divided, and investors should keep an eye on on-chain developments and validator ecosystem growth.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Polkadot Undergoes Bridge Exploit, Attacker Mints 1B $DOT on Ethereum
Polkadot faced a major security breach where an attacker minted 1B $DOT coins on Ethereum via a 3rd-party bridge, draining over $240,000 in $ETH. This incident highlights ongoing vulnerabilities in cross-chain infrastructure and its impact on market stability.
BlockChainReporter1h ago
Bitmine gets promoted to the NYSE main board! Tom Lee: U.S. stocks may be bottoming out, and selling pressure on Ether could ease
Bitmine has officially moved from the NYSE American board to the main board in the United States, marking an important milestone for the company. Despite a sharp drop in its share price, it has still increased the share repurchase plan to $4 billion. The company holds a large amount of Ether, and it expects that a rebound in the crypto market will help improve its assets and share price performance.
CryptoCity1h ago
Nasdaq-listed miner Bit Digital stakes 29.9k ETH
Gate News message: On April 13, according to monitoring by Onchain Lens, Bit Digital—an Nasdaq-listed mining company—staked 29.9k ETH, worth approximately $65.3 million.
GateNews2h ago
