🔻In 2025, the most profitable investment strategy turned out to be short positions against Ethereum. According to Bloomberg analyst Eric Balchunas, ETF funds like the ProShares UltraShort Ether ETF (ETHD) and the T Rex 2X Inverse Ether Daily Target ETF (ETQ) posted impressive gains — 247% and 219%, respectively. These funds use derivatives to track Ethereum’s price movement with double the volatility, capitalizing on its decline of more than 50% since the beginning of the year.
🔻The crash was triggered by a sharp drop in network revenue following the Dencun upgrade in March, which significantly lowered transaction fees — but also slashed staking yields by around 95%. Analysts note that Ethereum continues to lose ground amid the rise of Layer 2 solutions and an overall decline in smart contract market activity.