Culper Research has issued a stark warning regarding Ethereum's future, suggesting that the network may be on the brink of a death spiral. The study highlights an alarming trend: their analysis of on-chain data from January 2025 to February 2026 reveals troubling trends that could have serious implications for the platform's viability.
Dusting and Address-Poisoning Attacks
The report indicates that a staggering 95% of new wallet creations during the analyzed period are associated with dusting or address-poisoning attacks. These malicious activities now represent approximately 225% of all ETH transactions, raising significant concerns about the integrity of the network.
Economic Impact of Increased Gas Limits
Additionally, the economic impact of increased gas limits has led to a dramatic 90% drop in transaction fees, coupled with reduced tips per gas. This decline could severely affect validator economics, ultimately diminishing overall revenue generated from network activity.
Competition from Solana
Compounding these issues, Ethereum faces intensifying competition from Solana, which is increasingly attracting developers and users alike. This shift in activity raises critical questions about Ethereum's market position and its ability to maintain its dominance in the evolving blockchain landscape.
Culper Research previously challenged Tom Lee's optimistic view on Ethereum, raising concerns about the network's activity. For more details, see the full report here.
