Arbitrageurs who exploit price discrepancies between centralized and decentralized crypto exchanges are harming network decentralization, new research finds.
Maximal-extractable value (MEV) on the Ethereum network is becoming increasingly centralized, with arbitrageurs tightening their grip on transaction ordering.
According to a recent research paper, these arbitrageurs, called “searchers” in the paper, are increasingly in-house or have exclusive contracts with maximal extractable value builders, who are responsible for block construction on the Ethereum network.
MEV refers to the profit that blockchain validators or other participants can earn by reordering transactions within a block before it’s finalized. On Ethereum, MEV often involves strategies like arbitrage, front-running, or sandwich attacks, where traders exploit price differences to maximize gains.