Ethereum, Solana Battle MEV Bots Menace Following Aggressive Fee Spikes

NAIROBI (CoinChapter.com) — Ethereum and Solana both rely on validators to confirm transactions, unlike Bitcoin’s first-come, first-served system. This flexibility has allowed users to speed up transactions by paying higher fees. However, this prioritization has also given rise to Maximal Extractable Value (MEV) bots, causing significant issues on both networks.

MEV Bots Increase Ethereum Gas Fees

MEV bots have become a central topic in the debate on Ethereum and Solana’s transaction fees. Mert Mumtaz, co-founder of Solana RPC provider Helius, highlighted the role of the “Jaredfromsubway” bot on Ethereum.

This bot alone accounts for a staggering 142 ETH in daily gas fees, surpassing even major players like Coinbase. Mumtaz argues that by not subsidizing validators, the Ethereum Foundation indirectly endorses MEV bot operators to continue exploiting retail traders.

Ethereum, known for its scalability issues, remains the most expensive network for transactions. The proliferation of MEV bots like Jaredfromsubway exacerbates these costs. Despite years of dedicated research and solutions, Ethereum developers have not resolved the MEV issue.

Solana’s Strategy to Reduce Gas Fees

In contrast, Solana actively subsidizes most of its validators, a strategy not seen in Ethereum. This subsidy, focused on voting costs, discourages MEV operations by penalizing operators engaging in such activities. Critics argue this approach offers only “band-aid” solutions, with some suggesting Solana has “invented” and “weaponized” MEV.

Subsidized validators in Solana have been caught enabling MEV to “sandwich” users. The Solana Foundation quickly removed their stake, but it remains to be seen if MEV attacks will cease.

Ryan Berckmans, an Ethereum developer, notes that despite Ethereum’s extensive MEV research, the problem persists. He questions the effectiveness of Solana’s subsidies, suggesting they may lead to worse outcomes.

Ethereum and Solana both face significant challenges with MEV bots. While Ethereum’s lack of validator subsidies contributes to high gas fees, Solana’s approach offers a temporary fix.