Network and user-level impacts

Data block

Collection item

The ability of block producers to reorder transactions for profit introduces rent-seeking behavior at the consensus layer, compromising fair access to blockchain resources.
Liquidation competition during market downturns intensifies systemic risk, as MEV searchers rush to seize undercollateralized assets, accelerating volatility.
The pursuit of MEV profits has introduced high-frequency trading dynamics into blockchain networks, driving the deployment of latency-optimized infrastructure and competitive searcher strategies.
Public mempools expose unconfirmed transactions to MEV bots, enabling pre-confirmation exploitation through transaction simulation and strategic submission.
Ethereum’s transition to proof-of-stake preserved MEV extraction dynamics, transferring them from computational miners to capital-based validators.
The emergence of specialized roles such as searchers, builders, and proposers within MEV ecosystems has concentrated power over block construction among technically advantaged actors.
MEV extraction increases transaction costs and causes network congestion by encouraging competition among searchers who bid higher gas prices to prioritize their transactions.

Data source type

Collection data source

Referenced by

Maximal Extractable Value (MEV)

Crypto

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