Wall Street snipers are targeting Ethereum, and this time it's not hype

Yesterday, I saw the Culper Research short report, and I was completely stunned.

This isn't retail investors complaining online; this is Wall Street professional short-sellers who have accurately targeted numerous well-known companies before. Now, they have turned their guns on Ethereum.

Even more frightening is that their data sent chills down my spine.

95% of new wallets are fake. What does that mean?

The most shocking data in the report: After the Fusaka upgrade, 95% of new Ethereum wallets are fake wallets created through poisoning attacks.

What does that mean? It means that the apparent on-chain prosperity is mostly fabricated by bots—95% of it.

We have been paying the price for fake data.

It's like thinking a restaurant is booming, only to find that 95% of the customers are paid actors hired by the owner. Would you still see this place as an investment opportunity?

Even more astonishing, Culper conducted an experiment: creating two new wallets, transferring between them, and within five minutes, they were targeted by poisoning attacks. This shows the entire network has been thoroughly polluted by junk transactions.

Vitalik is dumping aggressively, and you're still buying in

The most heartbreaking thing is V God’s actions.

On January 30, he said he would sell 16,384 ETH to the foundation to get through the "tight period." What happened? He has already sold over 19,300 ETH and continues to sell.

The founder knows his product’s problems better than anyone. When even the captain starts jumping ship, how far can this ship go?

This isn’t a strategic adjustment; it’s an escape.

Gas fees plummeted 90%. Sounds great? Actually, it’s a disaster.

The Fusaka upgrade initially expected gas fees to drop by 10-30%, but they plunged by 90%.

It sounds good for users, but it’s a fatal blow to Ethereum’s economic model.

It’s like a hotel lowering room prices from 1000 to 100 to attract guests. Short-term occupancy skyrockets, but long-term, the hotel will go bankrupt.

Validator rewards have dropped 40-50%. Who still wants to stake? Decreased staking demand leads to lower network security, and institutions may not dare to come in.

The death spiral has already begun.

Tom Lee is still using flawed data to support Ethereum

The most ironic thing is that Tom Lee, one of Ethereum’s most staunch bulls, is still defending ETH using these polluted data.

He saw a surge in active addresses and claimed it was evidence of institutional adoption. Little does he know, 95% of that data is fake.

It’s like a doctor seeing a thermometer reading normal and declaring the patient healthy, only to find the thermometer is broken and the patient has a high fever.

Professional investors making decisions based on false information is more terrifying than retail investors blindly following.

Solana is eating away Ethereum’s market share

Data doesn’t lie:

- Solana developer growth will be 29% in 2025, while Ethereum’s is only 6%
- Visa and Citibank are choosing Solana to build DeFi applications
- Solana DEX trading volume is more than twice that of Ethereum

Talent is leaving, institutions are shifting, and trading volume is being overtaken.

This is a repeat of when Nokia was overtaken by Apple. Technical leadership doesn’t mean forever, and ecological advantages can be overturned.

Ethereum could become the next Nokia

The scariest part isn’t technological lag; it’s cognitive lag.

While the entire ecosystem is still immersed in the illusion that "Ethereum is the king of blockchains," reality is quietly rewriting itself.

It’s like in 2007, when Nokia was still proud of its market share, and Apple was already redefining smartphones.

Now, Solana is redefining blockchain, while Ethereum is still patching up its old architecture.

Moats aren’t breached by enemies; they are filled in by oneself.

This isn’t FUD; it’s reality.

I know many will say this is FUD, a conspiracy by short-sellers.

But the data is there, the logic is there, and even the founders are selling.

We need to face reality: Ethereum’s golden age may truly be over.

That doesn’t mean the blockchain industry is ending, but a new king is rising.

The question is, are you ready?

Or will you continue to pay for fake data and take on a broken economic model?

The choice is in your hands, but the window is closing fast.