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TagsWhich cryptocurrencies are most affected by MEV and why?
Awg NabilDec 18, 2021 · 3 years ago1 answersCan you provide a list of cryptocurrencies that are most affected by MEV (Miner Extractable Value) and explain why they are more susceptible to this phenomenon?
1 answers
- 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.Dec 18, 2021 · 3 years ago
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