Which cryptocurrencies are most affected by MEV and why?

1 answers

• Nikolai KimDec 06, 2020 · 5 years ago
  MEV (Miner Extractable Value) is a term used to describe the additional profits that miners can extract from the order of transactions in a block. While MEV affects multiple cryptocurrencies, Ethereum is particularly susceptible due to its high usage of smart contracts. The decentralized finance (DeFi) ecosystem on Ethereum is a hotbed for MEV, as it involves complex interactions between different protocols and smart contracts. This complexity creates opportunities for miners to extract additional value by front-running trades, sandwiching transactions, or performing other types of MEV strategies. Other cryptocurrencies like Binance Coin and Solana are also affected by MEV, but to a lesser extent compared to Ethereum. It's important for users and developers in the cryptocurrency space to be aware of MEV and work towards mitigating its impact.
  854

  427