Ethereum

Solana

Better

Value

Foundation

Unlike Bitcoin, where transactions are ordered on a first-come, first-served basis, Ethereum and Solana rely on a pool of validators to confirm transactions and add them to the next block. This process allows for flexibility, as users can expedite their transactions by paying higher fees. 
At the protocol level, prioritizing transactions based on gas fees has inadvertently led to the rise of complex Maximal Extractable Value (<a href="https://bitcoinist.com/mev-trading-ethereum-drop-below-3800/" target="_blank" rel="noopener ">MEV</a>) bots on Solana and Ethereum. By exploiting the system, these bots have become a significant factor in the ongoing debate about gas fees. 
<h2 id="mev-bots-pushing-gas-fees-higher-on-ethereum">MEV Bots Pushing Gas Fees Higher On Ethereum?</h2> 
Now, the debate surrounding validators, gas fees, and the impact of MEV bots on Solana and Ethereum is escalating. Mert Mumtaz, the co-founder of Solana RPC provider Helius, taking to X, <a class="editor-rtfLink" href="https://x.com/0xMert_/status/1800173301416989167" target="_blank" rel="noopener nofollow">highlighted</a> the role of a single sandwich bot, Jaredfromsubway, which was the top source of gas fees on Ethereum. 
This bot alone is responsible for a staggering 142 ETH per day, surpassing fees paid by major players like Coinbase. 
<img loading="lazy" decoding="async" class="size-full wp-image-305001" src="https://bitcoinist.com/wp-content/uploads/2024/06/GPt_s8BWoAAdQax.jpeg?resize=1024%2C487" alt="MEV bot biggest source of gas fee on Ethereum | Source: @0xMert_ via X" width="1024" height="487" srcset="https://bitcoinist.com/wp-content/uploads/2024/06/GPt_s8BWoAAdQax.jpeg?resize=1024%2C487?w=1704 1704w, https://bitcoinist.com/wp-content/uploads/2024/06/GPt_s8BWoAAdQax.jpeg?resize=1024%2C487?w=640 640w, https://bitcoinist.com/wp-content/uploads/2024/06/GPt_s8BWoAAdQax.jpeg?resize=1024%2C487?w=768 768w, https://bitcoinist.com/wp-content/uploads/2024/06/GPt_s8BWoAAdQax.jpeg?resize=1024%2C487?w=980 980w, https://bitcoinist.com/wp-content/uploads/2024/06/GPt_s8BWoAAdQax.jpeg?resize=1024%2C487?w=1536 1536w, https://bitcoinist.com/wp-content/uploads/2024/06/GPt_s8BWoAAdQax.jpeg?resize=1024%2C487?w=750 750w, https://bitcoinist.com/wp-content/uploads/2024/06/GPt_s8BWoAAdQax.jpeg?resize=1024%2C487?w=1140 1140w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1"> 
With this MEV bot being the highest source of gas fees on <a href="https://bitcoinist.com/bitcoin-ethereum-lead-migration-from-exchanges/" target="_blank" rel="noopener ">Ethereum</a>, the co-founder argues that by not subsidizing validators, the Ethereum Foundation is indirectly endorsing MEV bot operators to continue “robbing” retail traders. 
As it is, Ethereum, notorious for its scalability issues, is the most expensive network to transact on. Though on-chain scaling is a concern, the proliferation of MEV bots as seen with Jaredfromsubway, could be contributing immensely. 
<h2 id="is-solana-doing-a-better-job-at-addressing-mev-bots">Is Solana Doing A Better Job At Addressing MEV Bots?</h2> 
In light of this, the analyst points out that Ethereum developers have failed to address the MEV menace despite years of dedicated research and solutions at various protocol levels. 
Because of this persistent problem and coordinated and extensive research that continues to fail in Ethereum, the analyst thinks Solana is doing much better in handling the impact of MEV bots on gas fees. <a href="https://www.tradingview.com/x/iWNnwtkb/" rel="nofollow noopener" target="_blank"><img loading="lazy" decoding="async" class="size-full" src="https://www.tradingview.com/x/iWNnwtkb/" alt="Solana price trending downward on the daily chart | Source: SOLUSDT on Binance, TradingView" width="1233" height="592"></a> 
Solana currently and actively subsides most of its validators. The subsidy, absent in Ethereum, penalizes operators engaging in MEV operations, discouraging the behavior. Nonetheless, it is crucial to know that the subsidy is on voting costs and not the cost of hardware and operation. 
Even so, some think this approach only <a href="https://x.com/ryanberckmans/status/1800205088054763901" target="_blank" rel="noopener nofollow">offers</a> “band-aid” solutions. If anything, they argue that Solana actually “invented” and “weaponized” MEV. There are other claims that SOL holders like Multicoin Capital prioritize chains based on their MEV capture potential. 
Recently, some of these subsidized validators were caught enabling MEV to “sandwich” users. While the Solana Foundation swiftly <a href="https://discord.com/channels/428295358100013066/895740485140906054/1249452294194462733" target="_blank" rel="noopener nofollow">removed</a> their stake, it remains to be seen whether MEV attacks will stop.

Ethereum Struggling With MEV Bots, Executive Argues That Solana Has Succeeded

Table of Contents

Bitcoinist

Other articles published on Jun 11, 2024

BlockDAG’s Groundbreaking Keynote Outshines Competitors With $48.5M Presale Triumph

Shiba Inu Token Burn Rate Increases Significantly

These Three Altcoins Have Spurred a Marked Rebound; Polkadot to Become Market Leader?

MetaMask Launches Pooled ETH Staking, Except For US UK

Vitalik Buterin Spotlights Ethereum Layer 2 Progress, Hints Next Milestone

Tether to Fuel AI, Biotech, and FinTech Startups with $1 Billion

Join our free newsletter for daily crypto updates!