The post Research Suggests Ethereum MEV Arbitrage May Contribute to Network Centralization Concerns appeared on BitcoinEthereumNews.com.

New research reveals that arbitrageurs exploiting price differences between centralized and decentralized crypto exchanges are contributing to the centralization of Ethereum’s network. The study highlights how exclusive contracts between arbitrageurs and block builders intensify centralization pressures, raising concerns about Ethereum’s long-term security and fairness. According to COINOTAG, “vertical integration among dominant builders fosters monopoly pricing and increases vulnerability to censorship and commitment attacks.” New findings show Ethereum MEV arbitrage centralization threatens network decentralization, urging reforms to maintain fairness and security in crypto trading. ‘, ‘ 🚀 Advanced Trading Tools Await You!Maximize your potential. Join now and start trading! ‘, ‘ 📈 Professional Trading PlatformLeverage advanced tools and a wide range of coins to boost your investments. Sign up now! ‘ ]; var adplace = document.getElementById(“ads-bitget”); if (adplace) { var sessperindex = parseInt(sessionStorage.getItem(“adsindexBitget”)); var adsindex = isNaN(sessperindex) ? Math.floor(Math.random() * adscodesBitget.length) : sessperindex; adplace.innerHTML = adscodesBitget[adsindex]; sessperindex = adsindex === adscodesBitget.length – 1 ? 0 : adsindex + 1; sessionStorage.setItem(“adsindexBitget”, sessperindex); } })(); Ethereum MEV Arbitrage: Centralization Risks and Network Impact Maximal Extractable Value (MEV) on Ethereum has evolved into a highly centralized activity, dominated by a few key players known as “searchers” who exploit transaction ordering for profit. These searchers often operate through exclusive agreements with block builders, entities responsible for constructing blocks under the Proposer-Builder Separation (PBS) model. While PBS was introduced to enhance censorship resistance by separating block proposal and construction, the current landscape shows a concentration of power that undermines these goals. The research paper “Measuring CEX-DEX Extracted Value and Searcher Profitability” underscores that this vertical integration not only strengthens dominant players but also leads to monopoly pricing, which harms smaller participants and the overall network security. This centralization trend poses significant challenges to Ethereum’s foundational principle of decentralization, potentially affecting transaction fairness and network resilience. Exclusive…

---

Filed under: News - @ July 25, 2025 1:30 am